Jayant Reddy Marri , Hyderabad V. Income Tax Officer, Ward-9(4) , Hyderabad

ITA 189/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3255 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALURU VEKATA RAO
• Assessee Lawyers: MURALIMOHANA RAO
• Keywords: Capital asset
• Section: 201; 64; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODA R A, JUDICIAL MEMBER ITA NO. 18 9 /HYD./2020 ASSESSMENT YEAR: 201 0 - 11 SHRI JAYANT REDDY MARRI (HUF) VS. ITO, WARD 9 (4) HYDERABAD HYDERABAD [PAN: AAIHR1446M ] ITA NO. 190 /HYD./2020 ASSESSMENT YEAR: 2011 - 12 SHRI JAYANT REDDY MARRI VS. ITO, WARD 9 (4) HYDERABAD HYDERABAD [PAN: ACAPM 9268N ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI MURALI MOHANA RAO, AR FOR REVENU E : SH. ALURU VEKATA RAO, D.R. DATE OF HEARING : 27/01/2021 DATE OF PRONOUNCEMENT : 22 /02/2021 O R D E R THESE ASSESSEE S APPEALS ARISE AGAINST THE SEPARATE ORDERS OF THE CIT(A) - 7 , HYDERABAD DATED 02.12. 2019 PASSED IN APPEAL NO. 284 /201 6 - 17 FOR AY 2010 - 11, AND APPEAL NO.1 59/16 - 17 DATED 27.09.2019 FOR A.Y. 2011 - 12. HEARD SHRI P.MURALI MOHANA RAO REPRESENTING ASSESSEES AND SHRI ALURU VENKATA RAO, DR APPEARING FOR D EPARTMENT. CASE FILES PERUSED. ITA NOS. 189 & 190/H2020 AYS: 2010 - 11 AND 2011 - 12 SRI JAYANT REDDY MARRI (HUF)/SHRI JAYANT REDDY MARRI 2 2. THE FORMER A SESSEES FIRST AND FOREMOST GRIEVANCE CANVASSED IN ITA NO. 189/HYD/2020 CHALLENGES THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ADDING AN AMOUNT OF RS. 10 , 64 , 5 00/ - AS UNEXPLAINED CASH DEPOSITS . LEARNED COUNSEL IS FAIR ENOUGH IN NOT DISPUTING THE IMPUGNED ADDITION IN PRINCIPLE. HIS ONLY CASE IS THAT BOTH LOWER AUTH ORITIES HAVE FAILED IN GRANTING TELESCOPING BENEFIT OF CAPITAL GAIN S INCOME RECEIVED IN THE PRECEDING AY 2009 - 10 ON ACCOUNT OF SALE OF ITS CAPITAL ASSET/ LAND. THIS CLINCHING ASPECT HAS GONE UNREBUTTED FROM DEPARTMENTS SIDE. I THEREFORE DEEM IT AP PROPRIATE TO RESTORE THIS ISSUE TO CONSIDER ASSESSES TELESCOPING PLEA AS PER LAW IN ABOVE TERMS. THIS ISSUE IS ALLOWED FOR STATISTICAL PURPOSES. 3. LEA R NED COUNSEL NEXT TOOK ME TO ASSESSEES SUBSTANTI VE GRIEVANCE CHALLENGING CIT(A) DISALLOWING 12% OF EXPENDITURE CLAIM IN COMPUTATION OF CAPITAL GAIN (S) . IT IS NOT IN DISPUTE THAT THE CIT(A) HAS ACCEPTED 88% OF THE REMAINING EXPENDITURE IN PRINCIPLE . T HE FACT ALSO REMAINS THAT THE ASSESSEE HAS FAILED TO FILE ALL THE NECESSARY DETAILS QUA THE IMPUGNED CLAIM. I DEEM IT APPROPRIATE IN THIS FACTUAL BACKGROUND THAT 8% LUMPSUM DISALLOWANCE INSTEAD OF 12% IN ISSUE WOULD BE JUST AND PROPER WITH A RIDER THE SAME SHALL NOT BE TAKEN AS PRECEDENT. NECESSARY COMPUTATION SHALL FOLLOW AS PER LAW. T HE FORMER A SSESSEES APPEAL ITA 189 /H/20 FOR AY 2010 - 11 IS PARTLY ALLOWED IN FOREGOING TERMS. 4. L ATTER ASSESSEES APPEAL S SOLITARY GRIEVANCE RAISED SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION TREATING CREDITORS IN BANK ACCOUNT OF RS.14,34,500 / - AS UNEXPLAINED. MR. RAOS ONLY PLEA DURING THE COURSE OF HEARING IS THAT THE IMPUGNED ADDITION INVOLVES AN AMOUNT OF RS.5 LAKHS DERI VED FROM TRANSFER OF ASSESSEES CAPITAL ASSET WHICH HAS NOT BEEN CONSIDERED FOR TELESCOPING BENEFIT. I THEREFORE RESTORE THIS ISSUE BACK TO THE ASSESSING OFFICER TO CONSIDER ASSESSEES TELESCOPING PLEA AS PER LAW IN ITA NOS. 189 & 190/H2020 AYS: 2010 - 11 AND 2011 - 12 SRI JAYANT REDDY MARRI (HUF)/SHRI JAYANT REDDY MARRI 3 FOREGOING TERMS. THE REMAINING ADDITI ON OF RS.7,43,517/ - A LREADY MADE IN CIT(A)S ORDER AS PER OBSERVATIONS IN PARA 7.3 STANDS CONFIRMED . 5. NO OTHER ARGUMENT HAS BEEN RAISED BEFORE ME. THESE ASSESSEES APPEALS ARE PARTLY ALLOWED IN ABOVE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN OPEN COURT ON 22 /02/2021. SD/ - (S.S. GODARA) JUDICIAL MEMBER DATED: 22 ND FEBRUARY, 202 1 GMV COPY OF ORDER FORWARDED TO: 1. SRI JAYANT REDDY MARRI (HUF) (II) SRI JAYANT REDDY MARRI : C/O P. MURALI & CO., CHARTERED ACCOUNTANTS, 6 - 3 - 655/2/3, SOMAJIGUDA, HYDERABAD 500 082, TELANGANA. 2. ITO, WARD 9 (4) , HYDERABAD 3. ACIT, RANGE 9, HYDERAB AD 4. CIT(A) - 7 , HYDERABAD. 5. PR.CIT - 7 , HYDERABAD 6 D.R. ITAT HYDERABAD 7. GUARD FILE