Shri Pradip Kumar Basu, Kolkata V. I.T.O.,Ward-26(2), Kolkata

ITA 2122/KOL/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5411 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 10-05-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 13-09-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: JAHIRUDDIN MUNSI
• Keywords: Capital asset
• Section: 143(3); 54EC

Judgement Text

ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A(SMC) BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 2122/KOL/2019 ASSESSMENT YEAR: 2014-2015 SRI PRADIP KUMAR BASU,............................. .........................APPELLANT FLAT NO. D/101, MAYFAIR ETERNITY, ATLAS MORE, 2596 N.S.C. BOSE ROAD, KOLKATA-700145 [PAN:AGEPB8361P] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-26(2), KOLKATA, AAYAKAR BHAWAN DAKSHIN, 2. GARIAHAT ROAD, KOLKATA-700068 APPEARANCES BY: SHRI JAHIRUDDIN MUNSI, A.R., APPEARED ON BEHALF OF THE ASSESSEE SHRI JAYANTA KHANRA, JCIT , APPEARED ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : MAY 10, 2021 DATE OF PRONOUNCING THE ORDER : MAY 10, 2021 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKATA DATED 17.01.2018 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE ADDITION OF RS.6,14,674/- MADE BY THE ASSESSING OFFICER AND CON FIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF LONG-TERM CAPITAL GAIN. 2. AT THE OUTSET, IT IS NOTED THAT THERE IS A DELAY OF 484 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE T HE TRIBUNAL. IN THIS REGARD, THE ASSESSEE HAS FILED AN APPLICATION SEEKI NG CONDONATION OF THE SAID DELAY AND KEEPING IN VIEW THE REASONS GIVEN TH EREIN, I AM SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE DELAY OF 484 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBU NAL. EVEN THE LD. D.R. HAS ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 2 NOT RAISED ANY OBJECTION IN THIS REGARD. THE DELAY OF 484 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TR IBUNAL IS ACCORDINGLY CONDONED AND THE APPEAL OF THE ASSESSEE IS BEING DI SPOSED OF ON MERIT. 3. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION O N 04.12.2014 DECLARING TOTAL INCOME OF RS.5,96,040/-. IN THE SAI D RETURN, LONG-TERM CAPITAL GAIN ARISING FOR SALE OF RESIDENTIAL PROPER TY AMOUNTING TO RS.6,14,674/- WAS DECLARED BY THE ASSESSEE AND THE SAME WAS ADJUSTED AGAINST THE LOSS OF RS.8,64,542/- ARISING FROM THE COMMODITY SHARE TRANSACTION. SINCE THE LOSS FROM COMMODITY SHARE TR ANSACTION WAS NOT ELIGIBLE FOR ADJUSTMENT AGAINST THE LONG-TERM CAPIT AL GAIN ARISING FROM THE SALE OF RESIDENTIAL PROPERTY, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE FOR SUCH ADJUSTMENT AND MADE AN ADDITI ON OF RS.6,14,674/- TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF L ONG-TERM CAPITAL GAIN IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 07.11.2016. 4. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLATE PROCEE DINGS BEFORE THE LD. CIT(APPEALS), A NEW CLAIM WAS MADE BY THE ASSESSEE SEEKING EXEMPTION OF LONG-TERM CAPITAL GAIN ON ACCOUNT OF INVESTMENT MADE IN LONG-TERM CAPITAL GAIN BOND BY VIRTUE OF SECTION 54EC OF THE ACT. THE LD. CIT(APPEALS), HOWEVER, FOUND THAT THE SAID INVESTME NT WAS MADE BY THE ASSESSEE AFTER A PERIOD OF SIX MONTHS STIPULATED IN THE RELEVANT PROVISION AND THE ASSESSEE, THEREFORE, WAS NOT ENTITLED FOR E XEMPTION UNDER SECTION 54EC OF THE ACT ON ACCOUNT OF LONG-TERM CAPITAL GAI N. HE, THEREFORE, DISALLOWED THE CLAIM OF THE ASSESSEE AND CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF LONG-TERM CAPIT AL GAIN. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 3 5. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERV ED THAT THE LONG-TERM CAPITAL GAIN OF RS.6,14,674/- HAD ARISEN TO THE ASS ESSEE AS A RESULT OF RESIDENTIAL PROPERTY SOLD ON 12.06.2013 AND IN ORDE R TO CLAIM EXEMPTION ON ACCOUNT OF LONG-TERM CAPITAL GAIN UNDER SECTION 54EC OF THE ACT, THE ASSESSEE WAS REQUIRED TO MAKE INVESTMENT IN THE ELI GIBLE BONDS WITHIN SIX MONTHS FROM THE DATE OF TRANSFER OF THE LONG-TERM C APITAL ASSET I.E. 12.12.2013. SINCE THE INVESTMENT IN THE ELIGIBLE BO NDS WAS ADMITTEDLY MADE BY THE ASSESSEE ON 21.01.2014 I.E. AFTER THE P ERIOD STIPULATED IN SECTION 54EC, I FIND MYSELF IN AGREEMENT WITH THE L D. CIT(APPEALS) THAT THE ASSESSEE IS NOT ENTITLED FOR THE EXEMPTION UNDE R SECTION 54EC. EVEN THE LD. COUNSEL FOR THE ASSESSEE HAS NOT BEEN ABLE TO RAISE ANY MATERIAL CONTENTION TO DISPUTE THIS POSITION. HE HAS ONLY SU BMITTED THAT THE ASSESSEE WANTED TO INVEST THE LONG-TERM CAPITAL GAI N IN PURCHASE OF ANOTHER RESIDENTIAL PROPERTY AND UNABLE TO FIND THE SUITABLE PROPERTY, HE FINALLY INVESTED THE AMOUNT IN LONG-TERM CAPITAL GA IN BONDS ON 21.01.2020. IN MY OPINION, THIS ASPECT IS IRRELEVAN T TO DECIDE THE ELIGIBILITY OF ASSESSEE FOR EXEMPTION UNDER SECTION 54EC, WHICH SPECIFICALLY PROVIDES THAT THE INVESTMENT IN ELIGIB LE BONDS IS REQUIRED TO BE MADE BY THE ASSESSEE WITHIN A PERIOD OF SIX MONT HS FROM THE DATE OF TRANSFER OF THE LONG-TERM CAPITAL ASSET IN ORDER TO CLAIM THE EXEMPTION ON ACCOUNT OF LONG-TERM CAPITAL GAIN. I, THEREFORE, FI ND NO MERIT IN THIS APPEAL OF THE ASSESSEE AND DISMISS THE SAME. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 10, 2021. SD/- (P.M. JAGTAP) VICE-PRESIDENT KOLKATA, THE 10 TH DAY OF MAY, 2021 ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 4 COPIES TO : (1) SRI PRADIP KUMAR BASU, FLAT NO. D/101, MAYFAIR ETERNITY, ATLAS MORE, 2596 N.S.C. BOSE ROAD, KOLKATA-700145 (2) INCOME TAX OFFICER, WARD-26(2), KOLKATA, AAYAKAR BHAWAN DAKSHIN, 2. GARIAHAT ROAD, KOLKATA-700068 (3) COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKA TA, (4) COMMISSIONER OF INCOME TAX , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.