PERVIZ SAROSH BATLIWALLA, PUNE V. ACIT, CIRCLE-7, PUNE

ITA 178/PUN/2023

AI Insights

The case involves an appeal by Perviz Sarosh Batliwalla against the penalty imposed by the National Faceless Appeal Centre (NFAC) for allegedly furnishing inaccurate particulars of income concerning a long-term capital loss. The assessee and her daughter co-purchased a residential property and later sold it, claiming a long-term capital loss which was partially disallowed by the assessing officer. The main contention was whether the entire cost of acquisition, claimed by the assessee, should be allowed in her hands alone. The Tribunal found that the Revenue did not adequately support the imposition of the penalty, leading to the allowance of the assessee's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137552 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 12-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER ITA No.178/PUN./2023 Assessment Year 2016-2017 Perviz Sarosh Batliwalla, Supertrish, 37, Suyojana Society, Koregaon Park, Pune – 411 001 Maharashtra. PAN AAQPB4028F vs. The ACIT, Circle-7, 3 rd Floor, Aaykar Sadan, Salisbury Park, Gultekdi, Pune – 411 037 Maharashtra. Applicant Respondent Assessee by : Shri Sarosh Irani and Shri Manoj Solanki Revenue by : Shri M.G. Jasnani Date of Hearing : 03.04.2023 Date of Pronouncement : 03.04.2023 आदेश / ORDER PER SATBEER SINGH GODARA, JM : This assessee’s appeal for assessment year 2016-17, arises against the National Faceless Appeal Centre [in short the “NFAC”], Delhi’s Din & Order No.ITBA/NFAC/S/250/2022- 23/10480203(1), dated 15.12.2022, involving proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties. Case file perused. 2. It emerges during the course of hearing that the sole issue which arises for our apt adjudication in the instant appeal is that of correctness of the impugned 271(1)(c) penalty 2 ITA.No.178/PUN./2023 Perviz Sarosh Batliwalla, Pune. imposed by the learned lower authorities alleging furnishing of inaccurate particulars of income qua long term capital loss disallowance of Rs.81,60,800/-, coming to Rs.40,80,400/- as per her ½ share. This was for the reason that the assessee had stated before the assessing authority that although she and her daughter had co-purchased the residential property in question on 24.04.2008 for Rs.93 lakhs followed by its sale on 19.09.2015 for Rs.1 crore, the corresponding cost of acquisition worked-out at Rs.81,60,800/-, resulting in the above stated loss figure of Rs.81,60,800/- had to be allowed in her hands only as she had in fact borne the entire cost of acquisition. It is in this factual backdrop that both the learned lower authorities have rejected her loss claim to the extent of 50% and imposed the penalty in issue. 3. The Revenue strongly supported the impugned penalty imposed in both learned lower proceedings. Mr. Jasnani could hardly dispute from a perusal of the case records that the assessee’s daughter/co-sharer has nowhere shown to have actually paid her share so as to treat the above stated long term capital loss claim in her hands independently. We find from a perusal of Assessing Officer’s penalty order dated 16.03.2022 that the assessee’s above specific plea has nowhere been rebutted even in the assessment findings as well. Faced with the situation, we find 3 ITA.No.178/PUN./2023 Perviz Sarosh Batliwalla, Pune. no merit in the Revenue’s foregoing submissions supporting the impugned penalty. The same is directed to be deleted. 4. This assessee’s appeal is allowed in above terms. Order pronounced in the Open Court on 03.04.2023. Sd/- Sd/- (G.D. PADMAHSHALI) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 03 rd April, 2023 VBP/- Copy of the Order is forwarded to: 1. The Appellant; 2. The Respondent; 3. The CIT(A), Pune 4. 5. 6. The CCIT, Pune The DR ‘B’, ITAT, Pune Guard File BY ORDER, // True Copy // Senior Private Secretary : ITAT : Pune