ITO, CHENNAI V. D.Krishnaveni, CHENNAI

ITA 2336/CHNY/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9864 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-06-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 18-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Keywords: Salary income; Reasonable cause; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' $ , % ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A.NO . 2336/MDS/2014 & C.O. NO.7/MDS/2015 ( / ASSESSMENT YEAR: 2005-06) THE INCOME TAX OFFICER, SALARY WARD-II(2) WANAPARTHY BLOCK, 4 TH FLOOR, CHENNAI - 600 034. VS MRS. D.KRISHNAVENI NEW NO.83, OLD NO.10, FLAT NO.A-2, BULLAIAH ROAD, T.NAGAR, CHENNAI - 600 0 17. PAN:AACPK5902F ( /APPELLANT) (RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : MR. S.DAS GUPTA, JCIT /RESPONDENT BY : MR. Y.SRIDHAR, C.A . /DATE OF HEARING : 16 TH JUNE, 2015 /DATE OF PRONOUNCEMENT : 26 TH JUNE, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, CHENN AI DATED 28.04.2014 FOR THE ASSESSMENT YEAR 2005-06. 2. THE CROSS OBJECTION IS FILED BY THE ASSESSEE AN D IT IS BARRED BY 73 DAYS. THE ASSESSEE FILED AN AFFIDAVIT EXPLAINING REASONS FOR THE DELAY IN FILING OF CROSS OBJECTION. WE HAVE PERUSED THE REASONS AND ARE SATISFIED THAT THERE IS A REASONABLE CAUSE FOR THE DELAY IN FILING OF THE CRO SS OBJECTION. IN THE INTEREST OF JUSTICE, WE CONDONE THE DELAY OF 73 DAYS IN FILING OF CROSS OBJECTION. THUS THE PETITION FOR C ONDONATION OF 2 ITA NO.2336 /MDS/2014 DELAY IS ALLOWED AND THE CROSS OBJECTION IS ADMITTE D FOR DISPOSAL. 3. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- THE CIT(A) HAS ERRED IN HOLDING THAT AS PER JOINT VENTURE AGREEMENT, ASSESSEE HAS TRANSFERRED THE LAND ALONG WITH SUPERSTRUCTURE. THIS JOINT VENTURE AGREEMENT IS NOT A REGISTERED DOCUMENT. THE PROPERTY GOES INTO POSSESSION OF THE JOINT DEVELOPER ONLY AFTER EXECUTION OF GENERAL POWER OF ATTORNEY BY THE ASSESSEE. THIS GENERAL POWER OF ATTORNEY IS A REGISTERED DOCUMENT AND AS PER THE REGISTERED DOCUMENT THE PROPERTY TRANSFERRED IS A VACANT LAND ONLY. THE CIT(A) HAS ERRED IN NOT ADOPTING REGISTERED GENERAL POWER OF ATTORNEY AS A VALID DOCUMENT, WHEREIN IT WAS CLEARLY MENTIONED THAT THE PROPERTY TRANSFERRED WAS A VACANT LAND. ESPECIALLY, WHEN A DEMOLITION ORDER WAS OBTAINED BY THE ASSESSEE ON 10.11.2004 ONE MONTH PRIOR TO THE DATE OF REGISTERED GENERAL POWER OF ATTORNEY (17.12.2004). THIS CANNOT BE ATTRIBUTABLE TO A MISTAKE IN A REGISTERED DOCUMENT. 4. AT THE OUTSET, AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE SUBMITS THAT TAX EFFECT IN THIS APPEAL IS LESS THAN ` 4,00,000/-. THE COMPUTATION OF TAX EFFECT ON CAPIT AL GAINS ON INCOME FROM SALARY AND OTHERS HAS BEEN FILED BY THE ASSESSEE SHOWING TAX EFFECT AT ` 3,98,742/- TO WHICH THE DEPARTMENTAL REPRESENTATIVE DID NOT POINT OUT ANY M ISTAKE IN SUCH CALCULATION WHERE THE TAX EFFECT IS LESS THAN ` 4,00,000/-. 3 ITA NO.2336 /MDS/2014 5. IN VIEW OF THE CBDT CIRCULAR NO.5 OF 2014 DATED 10.07.2014, THE REVENUE IS PRECLUDED FROM FILING O F APPEALS, WHEN THE TAX EFFECT IS LESS THAN RUPEES FOUR LAKHS. AS HELD BY THE KOLKATA BENCH OF THIS TRIBUNAL IN THE CASE OF I TO VS. SRI SUJIT PANDEY IN ITA NO.1914/KOL/2012 DATED 10.09.20 14, CBDT INSTRUCTION NO.5 OF 2014 DATED 10.7.2014 IS AP PLICABLE TO PENDING APPEALS ALSO. THEREFORE, THIS APPEAL OF THE REVENUE DESERVES TO BE DISMISSED AS NOT MAINTAINABL E. 6. SINCE WE DISMISSED THE APPEAL OF THE REVENUE, TH E CROSS OBJECTION FILED BY THE ASSESSEE BECOMES INFRU CTUOUS AND THE SAME IS DISMISSED ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE REVENUE AND THE CR OSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH JUNE, 2015. SD/- SD/- ( ' ) ( % '' ) ( CHANDRA POOJARI ) ( CHALLA NAGENDRA PRASAD ) ) / ACCOUNTANT MEMBER ' ) / JUDICIAL MEMBER ' /CHENNAI, + /DATED 26 TH JUNE, 2015 SOMU ./ 0/ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 1 () /CIT(A) 4. 1 /CIT 5. / 5 /DR 6. /GF .