Polepalli Padmavathi, Anantapur V. Deputy Commissioner of Income Tax, Circle-1, Guntur

ITA 239/VIZ/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2250 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 11-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Cost of acquisition
• Section: 132; 143(3); 153A; 153C

Judgement Text

आयकर अपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ I.T.A. No.239/Viz/2021 (ननधधारण वर्ा / Assessment Year :2015-16) Polepalli Padmavathi, 28/937, Sangameswar Nagar, Montessori School Lane, Anantapur – 515001. PAN: ANNPP 2825 L Vs. Deputy Commissioner of Income Tax, Circle-1, Guntur. (अपीलधथी/ Appellant) (प्रत्यथी/ Respondent) अपीलधथी की ओर से/ Appellant by : Sri M.V. Prasad, CA प्रत्यधथी की ओर से / Respondent by : Sri MN Murthy Naik, CIT-DR सुनवधई की तधरीख / Date of Hearing : 01/06/2022 घोर्णध की तधरीख/Date of Pronouncement : 28/06/2022 O R D E R PER S. BALAKRISHNAN, Accountant Member : This appeal filed by the assessee against the order of the Ld. CIT(A)-12, Hyderabad in appeal No.10175/2018-19, dated 28/10/2021 in appeal No. 10175/2018-19, dated 28/10/2021 passed U/s. 143(3) r.w.s 153C and U/s. 250(6) of the Act for the AY 2015-16. 2 2. Assessee filed return of income for the AY 2011-12 on 31/3/2016 admitting total income of Rs. 3,51,070/-. A search and seizure operation U/s. 132 was conducted at the residential premises of Sri Polepalli Srinivasulu Gupta on 30/08/2016 the husband of the assessee. During the course of search operations two lands purchased by the assessee for Rs. 30 lakhs and Rs. 11.34 lakhs respectively were found. Accordingly, notice U/s. 153C r.w.s 153A were issued on 27/07/2017. In response to the notice assessee filed a return of income admitting a total income of Rs.2,12,970/-. After verifying the submissions, the Ld. AO made addition of Rs. 7,13,285/- to the total income of the assessee. Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). Before the Ld. CIT(A) none appeared on behalf of the assessee inspite of several opportunities and therefore the Ld. CIT(A) passed ex-parte order dismissing the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 3. The assessee has raised the following grounds of appeal: “1. The Ld.CIT(A) is erred in facts and law while passing the order. 2. The Ld. CIT(A) ought to have considered the appeal based on merits of the case instead of dismissing the appeal. 3 3. Without prejudice to the grounds, the appellant prays to give another opportunity of being heard before the CIT (A). 4. The Appellant may add, alter, modify or substitute any other points to the grounds of appeal at any time before or at the time of hearing of the appeal.” 4. The Ld. AR argued that the AO has not considered the cost of acquisition of the property while computing the capital gains on the sale of property. The Ld. DR relied on the orders of the Ld. Revenue Authorities. 5. We have heard the rival contentions and the material available on record and the orders of the Ld. Revenue Authorities. The Ld. AR submitted a statement which is extracted herein below for reference: Particulars Amount (Rs.) Total Sale Consideration Received (Date of Sale: 4/09/2014) (A) 7,13,285 Less Total Cost of Acquisition= 21,24,845/- Share of assessee: (Rs. 21,24,845 * 25%=Rs.5,31,211) Date of Purchase: 18/6/2011 Indexed cost of acquisition: Rs. 5,31,211*1024/7854 (B) 6,92,943 Long Term Capital Gain (A) – (B) 20,342 4 6. The Ld. AR also submitted copies of the sale and purchase documents and pleaded that cost of acquisition pertaining to 25% of the share of the assessee was not considered while computing the capital gains. We find from the order of the Ld. AO that an amount of Rs. 7,13,285/- being sale consideration towards sale of land has been added to the total income of the assessee without giving benefit of cost of acquisition. In view of the above, we therefore direct the Ld. AO to verify the copies of the sale deed and the purchase deed and allow the cost of acquisition in accordance with law. It is ordered accordingly. 7. In the result, appeal of the assessee is allowed for statistical purposes. Pronounced in the open Court on the 28 th June, 2022. Sd/- Sd/- (द ु व्वूरु आर.एल रेड्डी) (एस बालाकृ ष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याधयकसदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER Dated : 28.06.2022 OKK - SPS 5 आदेश की प्रनतनलनप अग्रेनर्त/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee – Polepalli Padmavathi, D.No.60-7-13, Ground Floor, Siddhartha Nagar, 4 th lane, Vijayawada, Andhra Pradesh-520010. 2. रधजस्व/The Revenue – The Dy. Commissioner of Income Tax, Circle- 1, Guntur, Andhra Pradesh-5220056 3. The Principal Commissioner of Income Tax (Central), Visakhapatnam. 4. आयकर आयुक्त (अपील)/ The Commissioner of Income Tax (Appeals)- 12, Hyderabad. 5. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम/ DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam