D.Sharathram (HUF), Coimbatore V. ITO, Coimbatore

ITA 1746/CHNY/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5747 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 28-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 09-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: A DHANANJAYAN
• Keywords: Principle of natural justice

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . , ' , % & BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NO.1746/MDS/2016 %' ' /ASSESSMENT YEAR: 2009-10 SHRI D.SHARATHRAM (HUF), NO.30 (OLD NO.45), KAMARAJ ROAD, RED FIELDS, COIMBATORE-641 018. VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD-1(1), COIMBATORE. [PAN: AABHD 5949 N ] ( ( /APPELLANT) ( )*( /RESPONDENT) ( + / APPELLANT BY : MR.A.DHANANJAYAN, CA )*( + /RESPONDENT BY : MR.S.BHARATH, CIT + /DATE OF HEARING : 28.11.2017 + /DATE OF PRONOUNCEMENT : 28.11.2017 / O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER : ITA NO.1746/MDS/2016 IS AN APPEAL FILED BY THE ASS ESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-2, COIMBATORE, IN ITA NO.378/14-15 DATED 30.03.2016 FOR THE AY 2009-1 0. 2. SHRI S.BHARATH, CIT, REPRESENTED ON BEHALF OF TH E REVENUE AND SHRI A.DHANANJAYAN, CA, REPRESENTED ON BEHALF OF THE ASS ESSEE. ITA NO.1746/MDS/2016 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE HAD SOLD 6.418 ACRES JOINTLY WITH THE KARTHAS MOTHER VIDE THREE S ALE DEEDS DATED 16.03.2009. THE SAID SALE DEEDS WERE, IN FACT, JOI NT DEVELOPMENT AGREEMENTS WITH M/S.RITHWIK INFOPARK PVT. LTD., M/S .HANUDEV INFOPARK PVT. LTD., AND M/S.RITHWIK INFRASTRUCTURE PVT. LTD. AS THE DEVELOPMENT WORK AS PER THE DEVELOPMENT AGREEMENTS HAD NOT BEEN COMPLETED, THE ASSESSEE HAD NOT DISCLOSED THE CAPITAL GAINS. IT W AS A SUBMISSION THAT THE AO HAD BROUGHT TO TAX, THE CONSIDERATION MENTIONED IN THE SALE DEEDS TO TAX UNDER THE HEAD LONG TERM CAPITAL GAINS. IT W AS A SUBMISSION THAT AS THE JOINT DEVELOPMENT AGREEMENTS HAD NOT BEEN OPERA TED UPON AND ON ACCOUNT OF THE CONSEQUENT LITIGATION, THE MATTER WA S REFERRED TO THE ARBITRAL TRIBUNAL APPOINTED BY THE HONBLE JURISDIC TIONAL HIGH COURT OF MADRAS. IT WAS A SUBMISSION THAT ARBITRAL AWARD WA S PASSED IN JUNE, 2017 WHEREIN IN POINT NO.10 AT PAGE NO.52, IT HAS B EEN MENTIONED THAT THE SALE DEEDS DATED 16.03.2009 WERE HELD AS VOID, AND THE CLAIMANT HAS BEEN ENTITLED TO COMPENSATION ON ACCOUNT OF THE BRE ACH OF THE TERMS OF THE JOINT DEVELOPMENT AGREEMENTS. THE LD.AR PLACE D BEFORE US A COPY OF THE ARBITRAL AWARD IN ARBITRATION OP NO.1/2016 D ATED 08.06.2017. IT WAS A SUBMISSION THAT AS THE SALE DEEDS HAD BEEN CA NCELLED, THE CONSEQUENTIAL ASSESSMENT OF THE LONG TERM CAPITAL G AINS WAS LIABLE TO BE DELETED. 4. IN REPLY, THE LD.DR SUBMITTED THAT THE ARBITRAL AWARD WAS NOT PLACED BEFORE THE AO. IT WAS A SUBMISSION THAT THE ISSUE COULD BE RESTORED TO THE FILE OF THE AO FOR RE-ADJUDICATION AFTER EXAMINATIO N OF THE ARBITRAL AWARD. ITA NO.1746/MDS/2016 :- 3 -: 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ARBITRAL AWARD HAS BEEN PASSED ONLY ON 08.06.2017 A ND IN THE SAID ARBITRAL AWARD, THE SALE DEEDS DATED 16.03.2009 HAS BEEN HELD TO BE VOID, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ISSUE OF THE LEVY OF CAPITAL GAINS IS LIABLE TO BE RESTORED TO THE FILE OF THE AO FOR RE- ADJUDICATION AFTER CONSIDERING THE ARBITRAL AWARD A ND WE DO SO. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 28, 2017, AT CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P GEORGE ) /ACCOUNTANT MEMBER ( ' ) (GEORGE MATHAN) % /JUDICIAL MEMBER /CHENNAI, 2 /DATED: NOVEMBER 28, 2017. TLN + )%34 54 /COPY TO: 1. ( /APPELLANT 4. 6 /CIT 2. )*( /RESPONDENT 5. 4 )%% /DR 3. 6 ( ) /CIT(A) 6. ' /GF