Chinnam Sreevalli, Bangalore V. Principal Commissioner of Income Tax, Rajahmundry

ITA 197/VIZ/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9470 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 18-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K SONAWAL
• Keywords: Set aside
• Section: 143(3); 54F; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 1 97 / VIZ /201 8 (ASST. YEAR : 20 13 - 14 ) SMT. CHINNAM SREEVALLI, PLOT NO. 211, CANARA BANK LAYOUT, 6 TH MAIN ROAD, KODIGEHALLI, BANGALORE . V S . IT O , WARD - 2 , ELURU . PAN NO. ADAPC 4277 E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI D.K. SONAWAL CIT DR DATE OF HEARING : 0 1 / 0 7 /201 9 . DATE OF PRONOUNCEMENT : 04 / 0 7 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF PRINCIPAL COMMISSIONER OF INCOME TAX , RAJAHMUNDRY , DATED 2 8 /0 3 /201 8 FOR THE ASSESSMENT YEAR 20 13 - 14 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL , FILED RETURN OF INCOME ELECTRONICALLY BY DECLARING TOTAL INCOME OF RS. 6,79,700/ - . SUBSEQUENTLY, CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY UNDER CASS AND AFTER FOLLOWING DUE PROCEDURE, ASSESSMENT WAS COMPLETED U/SEC. 143(3) ON 2 ITA NO. 197/VIZ/2018 ( SMT. CHINNAM SREEVALLI ) 22/12/2015 ASSESSING THE TOTAL INCOME AT RS. 7,24,696/ - . SUBSEQUENTLY , PR.CIT WHILE EXERCISING THE POWERS CONFERRED IN HIM U/SEC. 263 , HAS NOTED THAT THE ASSESSEE HAS CLAIMED EXEMPTION FROM LONG TERM CAPITAL GAINS U/SEC. 54F & 54BC TOTALLING TO RS.1.21 CRORES ON WHICH CLAIM U/SEC. 54F WAS ABOUT RS. 93.34 LAKHS . AS SEEN FROM THE RECORD, THE EXE M PTION WAS ALLOW ED BY THE ASSESSING OFFICER WITHOUT ASCERTAINING WHETHER THE BASIC CONDITION TO ALLOW EXEMPTION U/SEC. 54F I.E. THAT THE CAPITAL GAIN SHOULD BE INVESTED IN A NEW RESIDENTIAL HOUSE IS FULFILLED OR NOT. THE PR.CIT FURTHER FOUND THAT THE ORDER PASSED BY THE ASSESSING OFFICER IS ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF THE REVENUE FOR THE REASON THAT THE CLAIM MADE BY THE ASSESSEE WAS ALLOWED WITHOUT MAKING NECESSARY ENQUIRY AND HE CALLED THE EXPLANATION FROM THE ASSESSEE. BEFORE THE PR.CIT, THE ASSESSE E HAS SUBMITTED THAT ALL THE DETAILS WERE FURNISHED BEFORE THE ASSESSING OFFICER AND AFTER EXAMIN ING THE ENTIRE ISSUE , CL A IM MADE BY THE ASSESSEE WAS ALLOWED. HOWEVER, THE PR.CIT IS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND HE FOUND TH A T ASSESSMENT ORDER DATED 22/12/2015 IS ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF THE R E VENUE AND ACCORDINGLY ASSESSMENT IS SET ASIDE AND DIRECTED THE ASSESSING OFFICER TO EXAMINE ALL THE DETAILS AND PASS NECESSARY ORDERS. 3 ITA NO. 197/VIZ/2018 ( SMT. CHINNAM SREEVALLI ) 3 . ON APPEAL BEFORE US, LD. CO UNSEL FOR THE ASSESSEE IS UNABLE TO POINT OUT ANY MISTAKE OR ERROR FROM THE ORDER OF THE PR.CIT , DATED 28/03/2018 . 4 . PER CONTRA , LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDER PASSED BY THE PR.CIT. 5. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE DETAILS FILED BY THE ASSESSEE AND ALSO THE ASSESSMENT ORDER . FROM THE ASSESSMENT ORDER IT IS VERY CLEAR THAT THE ASSESSING OFFICER HAS NOT AT ALL EXAMINED THE CLAIM OF EXEMPTION MADE BY THE ASSESSEE IN RESPECT OF 54F OF THE ACT AND WITHOUT MAKING A DETAILED ENQUIRY SIMPLY ALLOWED THE CLAIM. THUS, WE ARE OF THE OPINION THAT THE PR.CIT RIGHT L Y EXERCISED HIS POWERS VESTED WITH HIM U/SEC. 263 OF THE ACT AND SET ASIDE THE ORDER PASSED BY THE ASSESSING OFFICER. WE FIND NO REASON TO INTER FERE WITH THE ORDER PASSED BY THE PR.CIT. THUS, THIS APPEAL FILED BY THE ASSESSEE IS DISMISSED. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 4 T H DAY OF JU LY , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 4 T H JU LY , 201 9 . VR/ - 4 ITA NO. 197/VIZ/2018 ( SMT. CHINNAM SREEVALLI ) COPY TO: 1. THE ASSESSEE SMT. CHINNAM SREEVALLI, PLOT NO. 211, CANARA BANK LAYOUT, 6 TH MAIN ROAD, KODIGEHALLI, BANGALORE. 2. THE REVENUE ITO, WARD - 2, ELURU. 3. THE PR. CIT , RAJAHMUNDRY. 4. THE D.R . , VISAKHAPATNAM. 5. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.