M/s. Raghunath Green Power (P) Ltd., CHENNAI V. ACIT, CHENNAI

ITA 2307/CHNY/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96031 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 07-09-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 30-12-2013
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: DR ANITA SUMANTH
• Keywords: Capital asset; Cost of acquisition
• Section: 147; 148; 132; 2

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 2307/MDS/2013 / ASSESSMENT YEAR :200 5 - 0 6 M/S. RAGHUNATH GREEN POWER (P) LTD., NO. 16, CENOTAPH ROAD, TEYNAMPET, CHENNAI 600 018. [PAN: A A DCR1513K ] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX , COMPA NY CIRCLE V, 121, UTHAMAR GANDHI SALAI, NUNGAMBAKKAM, CHENNAI 600 034 . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : DR. ANITA SUMANTH , ADVOCATE / RESPONDENT BY : SHRI A.V. SREEKANTH, J CIT / DATE OF HEARING : 0 7 . 0 9 .201 5 / DATE OF P RONOUNCEMENT : 11 . 0 9 .201 5 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISS IONER OF INCOME TAX (APPEALS) V , CHENNAI , DATED 3 0 . 1 0 .20 1 3 RELEVANT TO THE ASSESSMENT YEAR 200 5 - 0 6 . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE REAL ESTATE BUSINESS AND NOT FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2005 - 06. THEREFORE, THE ASSESSING OFFICER INITIATED PROCEEDINGS UNDER SECTION 147 OF THE INCOME TAX ACT, 1961 ( ACT IN SHORT) AND NOTICE UNDER I.T.A. NO . 2307 /M/ 13 2 SECTION 148 OF THE ACT WAS SERVED ON THE ASSESSEE BY RECORDING REASONS FOR REOPENING OF THE ASSESSMENT. ACCORDI NGLY, THE ASSESSEE HAS FILED ITS RETURN OF INCOME ON 05.12.2011 BY ADMITTING CAPITAL LOSS TO THE EXTENT OF .25,70,937/ - AND CLAIMED EXPENDITURE CONNECTED WITH SALE OF PROPERTY. WITH REGARD TO ALLOWABILITY OF EXPENSES CONNECTED WITH THE TRANSFER OF PROPERT Y, THE ASSESSEE HAS NOT FILED ANY RELEVANT DOCUMENT TO SUBSTANTIATE ITS CLAIM AND THEREFORE, THE ASSESSING OFFICER HAS NOT ACCEPTED THE SUBMISSIONS OF THE ASSESSEE . ACCORDINGLY, THE ASSESSING OFFICER , BY TAKING THE GUIDELINE VALUE FOR STAMP VALUATION PURPO SE, DETERMINED THE SALE CONSIDERATION AT .2,67,44,324/ - FOR COMPUTATION OF CAPITAL GAIN. 3. T HE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) AND THE LD. CIT(A), BY DISMISSING THE APPEAL FILED BY THE ASSESSEE, HAS OBSERVED AS UNDER: THE ASSESSEE SOLD A PROPERTY CONSISTING OF 7 GROUNDS AND 1721 SQ.FT. ON 26.07.2002 FOR A CONSIDERATION OF RS. 2,41,58,928/ - . THE ASSESSEE FILED RETURN OF INCOME, IN RESPONSE TO NOTICE U/S 148 ON 11.03.2011 AND ADMITTED A CAPITAL LOSS OF ( - )RS.25,70,937/ - AND DURING THE COURSE OF ASSESSMENT PROCEEDIN GS, THE ASSESSEE WAS ASKED TO FURNISH THE PROOF OF EXPENSES CLAIMED IN CONNECTION WITH TRANSFER AT RS.67,87,640/ - AND THE PROOF FOR INDEXED COST OF ACQUISITION AT RS.1,99,42,225/ - . WHEREAS THE ASSESSING OFFICER HAS TAKEN THE GUIDELINE VALUE FOR STAMP VALUA TION PURPOSE WHICH WORKS OUT TO RS.2,67,44,324/ - I.E. RS.1444 PER SQ.FT. FOR 18521 SQ.FT AND WORKED OUT CAPITAL GAIN AT RS.60,02,099/ - . IN THE ABSENCE OF ANY PROOF FOR THE EXPENDITURE CONNECTED WITH THE TRANSFER OF LAND CLAIMED BY THE ASSESSEE AT RS.67,87, 640/ - IS DISALLOWED AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. AS THE APPELLANT COULD NOT FURNISH ANY DETAILS ALONG WITH SUPPORTING DOCUMENTS FOR CLAIMING EXPENDITURE AT RS.67,87,640/ - NEITHER BEFORE THE UNDERSIGNED NOR BEFORE THE ASSESSING OFFICER, TH E DISALLOWANCE MADE BY THE ASSESSING OFFICER IS HEREBY CONFIRMED DISMISSING THE GROUNDS OF APPEAL FILED BY THE APPELLANT. I.T.A. NO . 2307 /M/ 13 3 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AND THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE L D. CIT(A) HAS NOT GIVEN SUFFICIENT OPPORTUNITY TO THE ASSESSEE SINCE THE NOTICE ISSUED TO THE ASSESSEE HAS REACHED TO THE OLD ADDRESS OF THE ASSESSEE, WHICH WAS RE - ROUTED AND THEREFORE, THE ASSESSEE WAS NOT ABLE TO APPEAR BEFORE THE LD. CIT(A) DESPITE HAVI NG INFORMED CHANGE OF ADDRESS. THEREFORE, THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED THAT ONE MORE OPPORTUNITY MAY BE GRANTED FOR FILING THE EVIDENCE. 5. ON THE OTHER HAND, THE LD. DR DID NOT SERIOUSLY OBJECT TO THE SUBMISSIONS OF THE ASSESSEE. 6. W E HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ASSESSEE SOLD A PROPERTY FOR A CONSIDERATION OF .2,41,58,928/ - AND CLAIMED EXPENSES IN CONNECTION WITH TRANSFER AT .67,87,640/ - . HOWEVER, THE ASSESSEE HAS NOT FURNISHED ANY PROOF FOR THE EXPENSES INCURRED AND THEREFORE , THE ASSESSING OFFICER HAS TAKEN THE GUIDELINE VALUE FOR STAMP VALUATION PURPOSES A ND WORKED OUT THE SALE CONSIDERATION AT .2,67,44,324/ - FOR COMPUTATION OF CAPITAL GAIN. ON APPEAL, EVEN BEFORE THE LD. CIT(A), THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE FOR THE CLAIM OF EXPENDITURE INCURRED BY IT. HOWEVER, THE LD. COUNSEL FOR THE ASSESS EE HAS SUBMITTED THAT INITIALLY THE CASE WAS HEARD PARTLY BEFORE THE LD. CIT(A) AND THE MATTER WAS ADJOURNED FOR THE PURPOSE OF I.T.A. NO . 2307 /M/ 13 4 FILING EVIDENCES. IT WAS FURTHER SUBMITTED THAT THE NOTICE OF HEARING ISSUED BY THE DEPARTMENT HAS NOT REACHED THE ASSESSEE SINC E IT WAS SENT TO ASSESSEE S OLD ADDRESS AND IT WAS RE - ROUTED TO THE ASSESSEE AND REACHED AFTER THE DATE OF HEARING. THEREFORE, THE ASSESSEE WAS NOT ABLE TO PRODUCE EVIDENCES FOR THE EXPENDITURE INCURRED FOR THE SALE OF PROPERTY AND SUBMITTED THAT ONE MORE OPPORTUNITY MAY BE GRANTED TO THE ASSESSEE FOR FILING THE EVIDENCES. IN VIEW OF THE ABOVE, WE ARE OF THE CONSIDERED OPINION THAT ONE MORE OPPORTUNITY SHALL BE GIVEN TO THE ASSESSEE TO MEET THE ENDS OF JUSTICE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD . CIT(A) AND THE ENTIRE ISSUE IS REMITTED BACK TO THE LD. CIT(A) WITH A DIRECT ION TO CONSIDER THE EVIDENCES FOR THE EXPENDITURE INCURRED, AS MAY BE FILED BY THE ASSESSEE , AND DECIDE THE ISSUE AFRESH AFTER GIVING REQUIRED OPPORTUNITY TO THE ASSESSEE. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 11 TH SEPTEMBER , 2015 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 11 . 0 9 .201 5 VM/ - I.T.A. NO . 2307 /M/ 13 5 / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.