Shahida Banu, CHENNAI V. ITO, CHENNAI

ITA 208/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8494 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 05-02-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: T VASUDEVAN
• Keywords: Opportunity of being heard
• Section: 54F; 142(1)

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I T.A. NO. 2 0 8 /MDS/201 6 / ASSESSMENT YEAR :20 11 - 12 S MT. SHAHIDA BANU, 20, DOOR NO. 5, DR. MUTHULAKSHMI STREET, INDIRA NAGAR, VALASARAVAKKAM, CHENNAI 600 0 87 . [PAN: BRTPS7057L ] VS. THE INCOME TAX OFFIC ER , INTERNATIONAL TAXATION II ( 1 ) , CHENNAI . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI T. VASUDEVAN, ADVOCATE / RESPONDENT BY : SHRI SHIVA SRINIVAS , JCIT / DATE OF HEARING : 13 . 0 7 .201 6 / DATE OF P RONOUNCEMENT : 16 . 0 9 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPE ALS) 1 6 , CHENNAI , DATED 04 . 11 .20 1 5 RELEVANT TO THE ASSESSMENT YEAR 20 11 - 12 . THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE MADE UNDER SECTION 54F OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT]. I.T.A. NO . 208 /M/ 16 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL , EARNING INCOME FROM CAPITAL GAINS AND INCOME FROM OTHER SOURCES AND FILED HER RETURN OF INCOME FOR THE ASSESSMENT YEAR 20 11 - 12 ON 26 .0 7 .20 11 ADMITTING TOTAL INCOME OF . 1,07,078 / - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT DATED 31.07.2012 WAS ISSUED AND DULY SERVED ON THE ASSESSEE . A QUESTIONNAIRE ALONG WITH NOTICE UNDER SECTION 142(1) OF THE ACT 25.06.2013 WAS ALSO I SSUED AND SERVED ON THE ASSESSEE . IN RESPONSE THERETO, THE ASSESSEE FILED THE DETAILS. FROM THE DETAILS AVAILABLE ON RECORD, THE ASSESSING OFFICER HAS NOTICED THE ASSESSEE HAS MADE CASH DEPOSIT OF .45,05,000/ - IN INDIAN BANK, VALASARAVAKKAM BRANCH DURING THE FINANCIAL YEAR 2010 - 11. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE FOR THE CASH DEPOSIT MADE WITH EVIDENCE. THE ASSESSEE VIDE SUBMISSION DATED 20.03.2014 HAS STATED THAT THE CASH DEPOSITS WERE MADE O UT OF SALE OF VACANT LAND AT UTH ANDI, CHENNAI THROU GH POA ON 10.06.2010 AND IN SUPPORT OF THE SAME, THE ASSESSEE HAS FILED SALE RECEIPT DATED 10.06.2010 FROM THE POA HOLDER FOR A SUM OF .48,00,000/ - . AS THE DEPOSITS IN THE INDIAN BANK ACCOUNT TALLIES WITH THE DATE OF SALE RECEIPT I.E., THE DEPOSITS WERE M ADE AFTER THE SALE OF LAND AS PER SALE RECEIPT, THE ASSESSING OFFICER HAS ACCEPTED THE SAME. T HE ASSESSEE HAS NOT OFFERED THE CAPITAL GAINS ON TRANSFER OF THE SAID LAND IN THE RETURN OF INCOME, WHEREIN INTEREST ON BANK DEPOSITS OF .1,07,770/ - ONLY WAS OFF ERED . HOWEVER, DURING I.T.A. NO . 208 /M/ 16 3 THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE FURNISHED COMPUTATION OF CAPITAL GAINS VIDE SUBMISSION DATED 20.03.2014 BEFORE THE ASSESSING OFFICER AND CLAIMED DEDUCTION OF CAPITAL GAIN UNDER SECTION 54F OF THE ACT, BUT THE ASSESS EE HAS NOT FILED ANY SUPPORTING DOCUMENT. THEREFORE, THE ASSESSING OFFICER DISALLOWED THE DEDUCTION OF CAPITAL GAINS AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) AND SUBMITTED THE SALE CONSIDERATION WAS FULLY UTILIZED BY EXECUTING A CONSTRUCTION AGREEMENT WITH AR BUILDERS FOR THE CONSTRUCTION OF HOUSE IN A PROPERTY, WHICH WAS PURCHASED ON 25.03.2004 AND THE CONSTRUCTION OF HOUSE WAS COMPLETED ON 15.06.2011. BEFORE THE LD. CIT(A), THE AS SESSEE HAS FURNISHED COPY OF CONSTRUCTION AGREEMENT DATED 10.12.2010 , DETAILS REGARDING QUOTATION FOR THE PROPOSED RESIDENTIAL BUILDING AT S 7 & 12, V.P. KATHA, NO. 1211, THANISANDRA VILLAGE, HOBLI, KARNATAKA. HOWEVER, SINCE THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE WITH REGARD TO PURCHASE OF PROPERTY, PAYMENT THEREOF, ETC., THE LD. CIT(A) CONFIRMED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. IN THE FORM OF PAPER BOOK, BY FILING VARIOUS PARTICULARS, THE LD. COUNSEL FOR THE ASSESSEE HAS PLEADED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY TO FURNISH THE DETAILS BEFORE THE ASSESSING OFFICER. I.T.A. NO . 208 /M/ 16 4 5. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. SINCE THE ASSESSEE HAS NOT FURNISHED ANY RELEVANT DETAILS BEFORE THE AUTHORITIES, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF DEDUCTION OF CAPITAL GAINS UNDER SECTION 54F OF THE ACT, WHICH WAS CONFIRMED BY THE LD. CIT(A). BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE FILED COPY OF SALE DEED DATED 25.03.2004 FOR THE LAND PURCHASED BY THE ASSESSEE IN BANGALORE, SALE RECEIPT DATED 10.06.2010 FO R THE UTHANDI LAND SOLD BY THE ASSESSEE, HOUSE COMPLETION AND HANDING OVER LETTER BY THE BUILDER, PROPERTY TAX RECEIPTS, PHOTOCOPY OF THE BUILDING CONSTRUCTED BY THE ASSESSEE AND PRAYED THAT THE ASSESSEE BE GIVEN ONE MORE OPPORTUNITY TO FURNISH ALL THE DET AILS BEFORE THE ASSESSING OFFICER FOR VERIFICATION. TO MEET THE ENDS OF JUSTICE, WE ARE OF THE OPINION THAT THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY TO FURNISH ALL THE DETAILS BEFORE THE ASSESSING OFFICER. ACCORDINGLY, WE SET ASIDE THE ORDER PASSE D BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER TO VERIFY THE DETAILS AS FILED BY THE ASSESSEE BEFORE THE TRIBUNAL AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER ALLOWING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSE SSEE IS ALSO DIRECTED TO FURNISH ALL THE DETAILS BEFORE THE I.T.A. NO . 208 /M/ 16 5 ASSESSING OFFICER FOR VERIFICATION. THUS, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PU RPOSES. ORDER PRONOUNCED ON THE 16 TH SEPTEMBER , 2016 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 16 . 0 9 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2 . / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.