The Income Tax Officer Ward-6(1)(2), Bangalore V. M/s Sobha Space Pvt Ltd , Bangalore

ITA 2115/BANG/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9271 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-08-2020
• Assessment Year: 2007-2008
• Appeal Filed On: 02-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJEET SINGH
• Assessee Lawyers: BHAIRAVKUTTAIAH
• Keywords: Reopening of assessment; Tax effect
• Section: 147

Judgement Text

ITA NO.2115/BANG/2018 M/S. SOBHA SPACE PVT. LTD., BENGALURU IN THE INCOME TAX APPELLATE TRIBUNAL ABENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.2115/BANG/2018 ASSESSMENTYEAR: 2007-08 ITO WARD-6(1)(2) BENGALURU PAN NO :AAICS0419G VS. M/S. SOBHA SPACE PVT. LTD. E-106, NO.22, SUNRISE CHAMBERS ULSOOR ROAD BENGALURU-560 042 APPELLANT RESPONDENT APPELLANT BY : SHRI MANJEET SINGH, D.R. RESPONDENT BY : SHRI BHAIRAVKUTTAIAH, A.R. DATE OF HEARING : 12.08.2020 DATE OF PRONOUNCEMENT : 14.08.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 13.12.2018 PASSED BY LD. CIT(A)-6, BENGALURU AND IT RELATES TO ASSESSMENT YEAR 2007-08 . THE REVENUE IS CHALLENGING THE DECISION RENDERED BY LD. CIT(A) ON THE VALIDITY OF REOPENING OF ASSESSMENT A ND ALSO IN DELETING THE ADDITION ON MERITS. 2. THE IMPUGNED ASSESSMENT WAS REOPENED BY THE A.O. U/S 147 OF THE INCOME-TAX ACT,1961 ['THE ACT' FOR S HORT], WHEREIN THE ASSESSING OFFICER ASSESSED A SUM OF ITA NO.2115/BANG/2018 M/S. SOBHA SPACE PVT. LTD., BENGALURU PAGE 2 OF 3 RS.1,31,65,575/- AS LONG TERM CAPITAL GAIN. IN THE APPEAL FILED BEFORE LD. CIT(A), THE FIRST APPELLATE AUTHOR ITY HELD THAT THE REOPENING OF ASSESSMENT IS WITHOUT JURISDI CTION AND HENCE ENTIRE PROCEEDING IS VOID-AB-INITIO. ON MERITS ALSO, THE LD. CIT(A) HELD THAT THE ADDITION OF RS.1,31,65,575/- BY WAY OF LONG TERM CAPITAL GAIN I S NOT SUSTAINABLE. AGGRIEVED BY THE ORDER PASSED BY THE LD. CIT(A), THE REVENUE HAS FILED THIS APPEAL BEFORE US . 3. AT THE TIME OF HEARING, THE LD. A.R. SUBMITTED T HAT THE TAX EFFECT INVOLVED IN THE QUANTUM DISPUTED BY THE REVENUE IS LESS THAN RS.50 LAKHS AND HENCE IN VIEW OF THE CIRCULAR NO.17/2019 DATED 8.8.2019, THE REVENUE IS PRECLUDED FROM PURSUING THIS APPEAL. 4. WE HEARD LD. D.R. WHO DID NOT DISPUTE THE FACTUA L ASPECTS PRESENTED BY LD. A.R. SINCE THE TAX EFFECT ON THE QUANTUM IN DISPUTE IS LESS THAN THE MONETARY LIMIT OF RS.50 LAKHS PRESCRIBED BY THE CBDT IN THE CIRCULAR REFERRED ABOVE FOR PREFERRING APPEAL BEFORE TRIBUNA L BY THE REVENUE, THE PRESENT APPEAL IS LIABLE TO BE DISMISS ED IN HOWEVER, THE REVENUE IS GIVEN LIBERTY TO MOVE APPRO PRIATE APPLICATION IN ACCORDANCE WITH LAW FOR RECALL OF TH IS ORDER, IF IT IS LATER FOUND THAT THE ISSUE CONTESTED IN TH E APPEAL IS COVERED BY ANY OF THE EXCEPTIONS GIVEN IN THE CIRCU LAR. ITA NO.2115/BANG/2018 M/S. SOBHA SPACE PVT. LTD., BENGALURU PAGE 3 OF 3 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14-08- 2020. SD/- (PAVAN KUMAR GADALE ) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 14 TH AUG, 2020. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.