Geetha Reddy, CHENNAI V. ACIT, CHENNAI

ITA 261/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73698 (ITAT-CHENNAI)
• Duration Of Justice: 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-02-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 04-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM IRS
• Assessee Lawyers: S SRIDHAR
• Keywords: Sale consideration of property below Jantri Value; Capital asset
• Section: 50C; 147

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !' , # $! % BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER S.P NO.32/MDS/2014 (IN ITA NO.261/MDS/2014) AND I.T.A. NO.261/MDS/2014 ( / ASSESSMENT YEAR : 2004-2005) SMT. GEETHA REDDY, NO.3, ARUNDALE BEACH ROAD, BESANT NAGAR, CHENNAI 600 090 . [PAN:AFAPG6547D] ( '& /APPELLANT) VS THE ASST. COMMISSIONER OF INCOME TAX, BUSINESS CIRCLE XV, CHENNAI. ( '('& /RESPONDENT) / APPELLANT BY : SHRI. S. SRIDHAR, ADV. / RESPONDENT BY : SHRI. GURU BHASHYAM, I.R.S, JCIT. /DATE OF HEARING : 11-02-2014 /DATE OF PRONOUNCEMENT : 11-02-2014 $) / O R D E R PER DR. O.K. NARAYANAN, VICE PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. TH E RELEVANT ASSESSMENT YEAR IS 2004-2005. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE S.P.NO.32/MDS/2014 (IN ITA NO. 261/MDS/2014) AND I.T.A.NO.261/MDS/2014 :- 2 -: COMMISSIONER OF INCOME TAX (APPEALS)-V, CHENNAI PAS SED ON 10.09.2013. THE APPEAL ARISES OUT OF THE ASSESSMEN T COMPLETED UNDER SECTION 144, READ WITH SECTION 147 OF THE INCOME-T AX ACT, 1961. 2. THE ASSESSEE HAD FILED HER RETURN OF INCOME FOR C2 2,48,307/-. THE RETURN WAS INITIALLY PROCESSED UNDER SECTION 14 3(1). THEREAFTER, THE RETURN WAS SELECTED FOR SCRUTINY AND ASSESSMENT WAS COMPLETED UNDER SECTION 143(3)/144. THE ASSESSING AUTHORITY REOPENED THE ASSESSMENT UNDER SECTION 147 ON THE GROUND THAT PRO VISIONS OF SECTION 50C WERE NOT APPLIED IN COMPUTING THE CAPITAL GAINS . THE ASSESSEE HAD SOLD HER PROPERTY AT KALASHETHRA COLONY. IT IS ON THIS BASIS, INCOME ESCAPING ASSESSMENT WAS COMPUTED. AN AMOUNT OF C67,00,000/- WAS ADDED TO THE INCOME RETURNED BY TH E ASSESSEE. IN FIRST APPEAL, THE ADDITION IS CONFIRMED AND THEREFO RE THE SECOND APPEAL BEFORE US. 3. SECTION 50C HAS MADE PROVISION FOR ADOPTING VALUE O F THE CAPITAL ASSET AT PAR WITH THE VALUE DETERMINED BY THE STAMP VALUATION AUTHORITY. IT IS IN THE LIGHT OF THE ABOVE PROVISI ON, CONTAINED IN SECTION 50C THAT THE ASSESSING OFFICER HAS COMPLETED THE A SSESSMENT UNDER SECTION 147. BUT IT IS TO BE SEEN THAT THE PARTICU LAR PIECE OF PROVISION S.P.NO.32/MDS/2014 (IN ITA NO. 261/MDS/2014) AND I.T.A.NO.261/MDS/2014 :- 3 -: WAS INTRODUCED IN SECTION 50C BY THE FINANCE (NO.2) ACT, 2009 WITH EFFECT FROM 1 ST OCTOBER, 2009. IN THE PRESENT CASE, ASSESSMENT INVOLVED IS 2004-2005. ANY ASSESSMENT ALREADY CONC LUDED CANNOT BE REOPENED UNDER SECTION 147 ON THE GROUND OF SUBSEQU ENT AMENDMENT WHICH IS BAD IN LAW, EVEN IF THE AMENDMENT IS RETRO SPECTIVE. 4. WE FIND THAT THERE IS NO GROUND FOR THE ASSESSING O FFICER TO REOPEN THE ASSESSMENT. ACCORDINGLY, THE IMPUGNED ASSESSMENT ORDER AS WELL AS THE APPELLATE ORDER ARE SET ASIDE. 5. THE ASSESSEE IS SUCCESSFUL IN HER APPEAL. 6. AS APPEAL STANDS DISPOSED OF, THE STAY PETITION FIL ED BY THE ASSESSEE IN S.P. NO.32/CH/2014 HAS BECOME INFRUCTUO US. 7. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALL OWED AND STAY PETITION IS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT A T THE TIME OF HEARING ON TUESDAY, THE 11 TH OF FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) JUDICIAL MEMBER (DR. O.K. NARAYANAN) VICE PRESIDENT DATED:11 TH FEBRUARY, 2014. K.V COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR /GUARD FILE. S.P.NO.32/MDS/2014 (IN ITA NO. 261/MDS/2014) AND I.T.A.NO.261/MDS/2014 :- 4 -: