Vikram Kalra, New Delhi V. ACIT, Circle-61(1), New Delhi

ITA 2644/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2795 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 26-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27; 54; 54F; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.2644/DEL/2019 Assessment Year 2012-13 Vikram Kalra, 215A-MIG Flats, Rajouri Garden, New Delhi. v. ACIT, Circle-61(1), New Delhi. TAN/PAN: AHEPK5621L (Appellant) (Respondent) Appellant by: Shri Arvind Kumar, Adv. Respondent by: Shri T. Kipgen, CIT-DR Date of hearing: 18 04 2022 Date of pronouncement: 09 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -X X, N e w Del hi ( ‘C IT( A) ’ i n sh ort ) da te d 22 .0 1. 20 19 ari si ng f ro m t he a sse ss me nt or der da ted 23 .0 2. 20 15 p as sed b y th e As ses si ng Of f icer ( AO ) un de r S ec tio n 271 (1 )( c) of the I nco me Ta x Act , 19 61 ( the A ct ) co nc er ni ng A Y 20 12- 13 . 2. As p er t he g ro un ds of appea l, t he a ss ess ee h as cha ll en ge d the i mpo sit io n of pen al t y of Rs. 13 ,7 5, 05 0/ - on ac co un t of dis all ow an ce of de du ct io n u n der Sec ti on 5 4F of the Act . 3. W h en t he mat te r was ca lle d f or h ea rin g, ld. co unse l f or t he ass es se e su b mit te d tha t pe na lt y i mpo sed b y t he As sess i ng Of f ice r un der Se cti on 27 1( 1)( c) a mo un ti ng to Rs .1 3,7 5, 05 0/ - an d conf ir me d b y t he l d. C IT (A ) is w ho ll y un ju st if ied i n th e f acts of the pre se nt I.T.A. No.2644/Del/2019 2 cas e. It w as p oi nte d o ut t hat t he A ss ess in g Of f icer i n t he qu an tu m pro ce ed in gs , d isa ll ow ed t he cl ai m of t he a ss es se e und er Sec ti on 54 F of the Ac t f or ex e mp tio n of cap it al gai ns o n th e grou nd th at t he ass es se e h as no t s a tisf i ed th e c on dit io ns of Se cti on 5 4F of the Ac t. In th is r eg ar d, t he ld. c ou nse l p oin t ed o ut t hat t he a s ses se e ha s tra nsf e rre d th e or i gin al a ss et o n 3 0.0 5.2 01 1 (i nc orre ctl y wri tte n as 24. 05 .2 01 1) b y th e CI T( A) an d cl ai me d exe mp ti on of R s. 44, 50 ,0 00 /- to war ds L on g T er m Ca pi ta l G ai n a ri si ng th ere on o n the gro un d th at ne w as set wa s pu rch as ed b y t he a s ses se e al be it o n 09.0 4. 20 10 . Fu rth er , t he ld . co u nse l p oi nt ed ou t t h at t he Tr ib un al in t he q ua nt u m pro ce ed in gs i ts elf has no te d th e f act tha t t he a ss es see h ad r ece iv ed Rs .5 l ac o n ac co un t of sec ur it y de po s it a gai ns t t he p ro p ert y u nde r pro po se d s al e on 0 6.0 4. 20 11 (i .e. wi t hin a p eri od of on e ye ar f ro m the da te of co rr es p on din g of ne w a ss e t) a lth ou gh a f or ma l ag ree me nt was e xec ut ed on 30. 05 .2 01 1 wit h a dif f ere nt pa rt y. T he sec ur it y dep os it r ec eiv ed was pro mp tl y ref un ded o n th e ne xt da te of agr ee me nt o n 3 1. 0 5.2 01 1 o n ha pp en i ng of ac tu al s ale. In th es e cir cu ms ta nc es, it was p oi nte d out t h at whe n the d ate o f rece ip t of sec ur it y de po si t o n 06. 04 .2 01 1 is re ck one d a s a c ause of act io n, t he pur ch as e of th e pr ope rt y o n 09 .0 4. 20 10 f a ll s w it hi n the st ip ul ate d ti me pe ri od s pe cif ied u nd er S ec ti on 54F of th e Ac t. Und er t he cir cu ms ta nc es no t wit hs ta nd in g t he r eje ct io n of t he cl ai m of t he ass es se e in the qu a ntu m p ro cee di ng s u pto IT AT , th e pe na lt y bei ng a dis ti nc t pr oce ed in g re qu ir es t o be te ste d on t he se f act s. It w as cla i med t hat t he c l ai m of de du ct io n u nde r Se ct io n 54 F a lbe it f ou nd to b e w ro ng i n t he q ua nt u m pr oce edi ng s, b y i ts elf wo ul d no t con st ru e th at t he ass es se e ha s co nc eal ed a n y p ar ticul ars of hi s inc o me or f ur ni sh e d i nac cu ra te par ti c ula rs of su ch in co me pe r s e. It was c ont en de d t ha t me re inc or re ct cla i m in la w f or su ch de duc ti on wo ul d not a ut o mat ica ll y ta nta mo u nt t o the d ef au lt spec i f ied un de r I.T.A. No.2644/Del/2019 3 Sec ti on 27 1( 1)( c) o f the Ac t a s he ld b y t h e H on ’bl e S up r e me Co ur t in CI T v s. R eli an c e P etr o Pr od uc ts P vt. L td. , ( 20 1 0) 32 2 I TR 15 8 (S C). Th e l d. c ou nse l a cco rd in gl y u rge d f or c an ce lla ti on of t he pen al t y i mp os ed b y th e As se ss in g Of f icer . 4. Ld. DR f o r th e R eve nu e re li ed up o n th e ac ti on s of t he L d. CI T( A) an d As se ss i ng Of f ice r a s ref le c ted i n th eir r es pec ti ve or de rs . 5. W e h av e ca ref u ll y con si de re d th e ri va l s su b mis sion s. The sh ort iss ue , i n t he i ns ta n t ca se , is to wa rd s jus tif i cat ion of i m po sit io n of pen al t y wi th a id of Sec ti on 27 1( 1)( c) f or r ej ec ti on of ded uc ti on cla i med u nd er Se ct i on 54 F of t he A ct. 5.1 As n ar rat ed on be h alf of the a ss es se e, it is seen t ha t th e bas is f or den ia l of dedu c tio n un de r Se ct io n 54 F is th at the p ur c has e of the pro pe rt y i.e . ne w a sse t wa s be yo n d t h e per io d of one ye ar vi s- à- vis sal e of th e o ld a ss e t i n t hi s reg ar d. It i s t he ca se of t he as ses se e t ha t alt ho ug h the p ur ch ase of n ew a sse t is be yo n d on e yea r vi s-à -v is sa le of the o ld as se t, th e s ecu ri t y de po si t f or sal e of ol d a ss et wa s t ak en wit hi n a p eri od of one ye a r, a nd t he re f ore, t he a ctio n f or sale of old ass et s ta rte d ro ll in g wi th in t he s ti pu lat ed pe ri od . It is t he cas e of t he ass es se e t ha t t he p rov is io ns of S ect io n 5 4F ar e b enef ici al i n na tur e and t he Co urt s ha ve al wa ys a cc or de d lib er al i nt erp re ta tio n an d a s mall del a y of f ew da ys h av e be en con do ne d f or th e elig ib il it y pur po se s. Ev en ot h erw is e, in th ese ci r cu mst an ce s, th e i m po sit io n of pen al t y on ac co un t of de nia l of d ed uc tio n o n suc h tec hn i cal br ea ch is no t ju st if ied o n t he co nt ou rs of S ec t ion 2 71 (1 )(c) of t he Ac t. 5.2 W e f in d meri t i n t he p le a of the as se sse e f or can cel la ti on of pen al t y. W hi le t he ad mis si bi li t y of de duc ti on un de r S ect ion 54 F i n the c ir cu ms ta nce s ma y b e so me w hat d eb at ab le d u e to n on co mpl ia nc e of str ic t let te r of law . Ho we ver , th is by it se l f , woul d n ot I.T.A. No.2644/Del/2019 4 res ul t i n i mpo si ti on of pe na lt y a s a c o nse qu en ti al me as ur e. Th e c as e of the a ss es se e i s f ull y su pp or tab le b y t h e d eci si on of the H on ’b le Su pre me C ou rt in t he c as e of C IT v s. Rel ia nc e P et ro Pr od uct s P vt . Lt d. a s r ep or te d in 18 9 T ax ma n 32 2. A d mitt ed l y, n o in ac c ura c y wa s f ound i n t he p art ic ula rs of d ed uc ti on cla i med as s uc h. T he as se ss ee als o h as a b asi s f o r cl ai m of de du ct io n in th e l ig ht of t h e f act t ha t sec ur it y d e po sit w as ac ce pte d f r o m t he br ok er s ag ain st th e sa le of pro pe rt y w h ic h u lt i mat el y ma ter ia li ze d 2 0- 25 d a ys lat er res ul ti ng in sli gh t de la y i n ac t ual e xe cu tio n of s ale a gre e men t of o ld as se t. In suc h c irc u ms tan ce s , s mal l br ea ch i n t h e st ip ul ate d p eri od of one ye a r bet we en pu rc ha se a nd sa le of as se ts w oul d no t j us tif y i mpo sit io n of one ro us p en alt y. 5.3 The or der of the CI T( A) i s ac co rdi ngl y s et a si de a n d th e pen al t y i mp os ed b y t h e As se ss in g Of f icer o n th is score sta nd s can ce lle d. 6. In th e res ul t, t he ap pea l of th e as se ss ee is a llow ed. Order pronounced in the open Court on 09/05/2022. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09/05/2022 Prabhat