Karen Judaline Godfrey, Australia V. Asst. Commissioner of Income Tax, International Taxation-1, Hyderabad

ITA 1697/Hyd/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8452 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2010-2011
• Appeal Filed On: 18-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: C.S. SUBRAMANYAM
• Keywords: Sale consideration of property below Jantri Value; Capital asset
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A” : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No. A.Y. Appellant Respondent 1697/Hyd/19 2010-11 Karen Judaline Godfrey, Australia [PAN: AWMPG0865H] Asst.Commissioner of Income Tax, International Taxation-1, Hyderabad 248/Hyd/20 2010-11 Natalie Meria Godfrey, Australia [PAN: AWMPG0864G] For Assessee : Shri C.S.Subramanyam, AR For Revenue : Shri Sunku Srinivas, DR Date of Hearing : 08-09-2021 Date of Pronouncement : 16-11-2021 O R D E R PER S.S.GODARA, J.M. : These two assessees’ appeals are for AY.2010-11 arise from the CIT(A)-10, Hyderabad’s order(s) dated 08-10-2018 passed in appeal Nos.0241 & 0242/CIT(A)-10/2017-18, involving proceedings u/s.143(3) r.ws. 147 of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case files perused. 2. It transpires at the outset that this assessee’s instant appeals suffers from 347 days (ITA No.1697/H/19) and 454 days (248/H/20) delay stated to be attributable to the reason(s) beyond their control as per condonation ITA Nos. 1697/Hyd/19 & 248/Hyd/20 :- 2 -: petition/affidavit. No rebuttal has come from the departmental side. The impugned delay is condoned therefore. 3. The assessees’ identical sole substantive grievance raised in the instant appeals challenges correctness of both the lower authorities’ action making long term capital gain addition of Rs.66,86,575/- each, after invoking Section 50C of the Act, in the course of assessment and upheld in the CIT(A)’s order. Suffice to say, it is not in dispute that both the lower authorities have gone by the stamp rate of the capital asset transferred by the assessees’ at much lower value after invoking Section 50C of the Act. 4. Learned departmental representative fails to dispute that neither of the lower authority has made any statutory reference to the DVO u/s.50C(2) of the Act. He vehemently argued that no such reference prayer from assessee’s side came in the course of twin lower proceedings. We find no merit in the Revenue’s instant technical argument. Hon'ble Calcutta high court decision Sunil Kumar Agarwal Vs. CIT (2014) [372 ITR 83] (Cal) holds that Section 50(C)(2) reference to the DVO is mandatory even if the assessee concerned fails to agitate the same before departmental authorities. 5. Learned authorised representative at this stage stated during the course of hearing that the capital asset sold at the assessees’ behest in the relevant previous year also involved some title dispute and other distressing factors. We therefore restore this sole issue of long term capital gain addition back to the Assessing Officer for his appropriate adjudication after making reference to the DVO as per law. It is made clear that ITA Nos. 1697/Hyd/19 & 248/Hyd/20 :- 3 -: the assessees shall be at liberty to raise all factual/legal pleas in consequential proceedings. 6. These assessees’ twin appeals are treated as allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 16 th November, 2021 Sd/- Sd/- (LAXMI PRASAD SAHU) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 16-11-2021 TNMM ITA Nos. 1697/Hyd/19 & 248/Hyd/20 :- 4 -: Copy to : 1.Karen Judaline Godfrey, C/o.M.Bhaskara Rao & Co., Chartered Accountants, 5-D, Fifth Floor, Kautilya, 6-3-652, Somajiguda, Hyderabad. 2.Natalie Meria Godfrey, C/o.M.Bhaskara Rao & Co., Chartered Accountants, 5-D, Fifth Floor, Kautilya, 6-3-652, Somajiguda, Hyderabad. 3.Asst.Commissioner of Income Tax, International Taxation- 1, Hyderabad. 4.CIT(Appeals)-10, Hyderabad. 5.CIT(IT & TP)-Hyderabad. 6.D.R. ITAT, Hyderabad. 7.Guard File.