Mahadevan G.Krishnan, CHENNAI V. DDIT, CHENNAI

ITA 2085/CHNY/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8198 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 18-01-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 28-10-2015
• Court: TRIBUNAL
• Assessee Lawyers: R BHAVYA MR A B KOLIJCIT D

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , ! ' #! ' $ . %& ' () BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.2085 /MDS./2015 ( / ASSESSMENT YEAR :2011-12) MR.MAHADEVAN G. KRISHNAN , REP. BY HIS PA HOLDER V.RAMESH, BLOCK F.NO.12,AASIANAN APARTMENTS, 2 ND CROSS STREET, VENUS COLONY, ALWARPET, CHENNAI 600 018.L VS. THE DEPUTY DIRECTOR OF INCOME TAX, INTERNATIONAL TAXATION (1), CHENNAI 600 034. PAN BKYPK 2257 C ( *+ / APPELLANT ) ( ,-*+ / RESPONDENT ) / APPELLANT BY : MR.R.BHAVYA,ADVOCATE / RESPONDENT BY : MR.A.B.KOLI,JCIT, D.R / DATE OF HEARING : 18.01.2016 ! /DATE OF PRONOUNCEMENT : 20.01.2016 . / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)- I6, CHENNAI DATED 25.09.2015 PERTAINING TO THE ASSESSMENT YEAR 2011-12. ITA NO.2085/MDS/2015 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSES SEE IS A NON- RESIDENT INDIAN. DURING THE YEAR ENDED 31.03.2011, THE ASSESSEE SOLD HIS SHARE OF INHERITED HOUSE PROPERTY AT CHENN AI WHICH GAVE RAISE TO LONG TERM CAPITAL GAINS. THE SALE HAPPENE D IN FEBRUARY 2011. THE TOTAL LONG TERM CAPITAL GAINS ON SALE OF THE PROPERTY WAS ` 2,29,75,097/-. OUT OF THE SAID LONG TERM CAPITAL G AINS, THE APPELLANT INVESTED A TOTAL SUM OF ` 1,00,00,000/- IN REC CAPITAL GAINS TAX SAVING BONDS. THE SAID SUM OF ` 1 CORE WAS INVESTED IN TWO TRANCHES, NAMELY ` 50 LAKHS BEFORE 31.03.2011 AND ` 50/- LAKHS AFTER 31.03.2011. BOTH THE TRANCHES OF INVESTMENTS WERE MADE WITHIN SIX MONTHS FROM THE DATE OF SALE WHICH HAS NOT BEEN DIS PUTED IN THE ASSESSMENT ORDER. FOR THE SAID INVESTMENT IN CAPIT AL GAINS TAX SAVING BONDS, THE ASSESSEE CLAIMED EXEMPTION OF EQUIVALENT AMOUNT OF ` 1/- CRORE U/S.54EC OF INCOME TAX ACT, 1961. HOWEVER, W HILE COMPLETING THE SCRUTINY ASSESSMENT OF THE ASSESSEE, THE A.O D ISALLOWED THE EXEMPTION U/S.54EC TO THE EXTENT OF ` 50/- LAKHS ON THE GROUND THAT THE MAXIMUM AMOUNT OF EXEMPTION THAT CAN BE AVAILED IS ONLY ` 50/- LAKHS. THIS HAS RESULTED IN TAX AND INTEREST DEMAN D OF ` 12,97,202/- ITA NO.2085/MDS/2015 3 ON THE ASSESSEE FOR THE ABOVE ASSESSMENT YEAR. ON A PPEAL, THE CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER . 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION, THE ISSUE IS SQUARELY COVE RED BY THE JUDGEMENT OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. C.JAICHANDER REPORTED IN [2015] 370 ITR 0579(MAD.) WHEREIN IT WAS HELD THAT LEGISLATURE BY FINANCE (NO.2) ACT, 2014, WITH EFFECT FROM 01.04.2015, INSERTED AFTER EXISTING PROVISO TO SUB- SECTION (1) OF SECTION 54EC SECOND PROVISO, AS PER WHICH INVESTMEN T MADE BY AN ASSESSEE IN LONG TERM SPECIFIED ASSET, OUT OF CAPIT AL GAINS ARISING FROM TRANSFER OF ONE OR MORE ORIGINAL ASSET, DURING FINANCIAL YEAR IN WHICH ORIGINAL ASSET OR ASSETS ARE TRANSFERRED AND IN SUBSEQUENT FINANCIAL YEAR DOES NOT EXCEED FIFTY LAKH RUPEES. BEING SO, IN OUR OPINION THAT THE ASSESSEE INVESTED IN REC CAPITAL G AINS TAX SAVING BONDS ON 28.02.11 AT ` 50/- LAKHS, AND ON 30.04.2011 AT ` 50/- LAKHS. THE ASSESSEE CLAIMED FOR EXEMPTION U/S.54EC OF THE ACT FOR INVESTMENT IN LONG TERM BONDS TO BE ALLOWED. ACCOR DINGLY, WE ITA NO.2085/MDS/2015 4 REVERSE THE ORDER OF THE CIT(A) ON THIS ISSUE AND A LLOW THE CLAIM OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON WEDNESDAY THE 20 TH OF JANUARY,2016 AT CHENNAI. SD/- SD/- ( ' #! ' $ . %& ) ( '#$$#%#&%'&%('')* ( ( + , - . ) ) /0123452&6778259*& JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 20 TH JANUARY,2016 . K S SUNDARAM. :;&& <=&>= /COPY TO: & 1. /APPELLANT 2. /RESPONDENT 3. & ?&/* /CIT(A) 4. & ? /CIT 5. =@A& B /DR 6. AC&D /GF