Mr. Gujjaraiah Lakshminarayana, Bangalore V. Income tax Officer, Ward-7(2)(4), Bangalore

ITA 2710/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2418 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-03-2020
• Assessment Year: 2010-2011
• Appeal Filed On: 27-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: SUKESH PATIL
• Keywords: Principle of natural justice; Additional evidence
• Section: 54F; 142(1); 148; 144

Judgement Text

ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL CBENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.2709/BANG/2018 ASSESSMENTYEAR: 2010-11 MR. CHIKKAVEERAYYA CHIKKANNA NO.47, UDDANDAHALLI VILLAGE TAVAREKERE HOBLI BANGALORE SOUTH TALUK 560082 PAN NO : AQLPC0604M VS. INCOME TAX OFFICER WARD- 7(2)(4) BANGALORE APPELLANT RESPONDENT ITA NO. 2710/BANG/2018 ASSESSMENT YEAR: 2010-11 MR. GUJJARAIAH LAKSHMINARAYANA NO.47, UDDANDAHALLI VILLAGE TAVAREKERE HOBLI BANGALORE SOUTH TALUK 560 082 PAN NO : ADEPL6897P VS. INCOME TAX OFFICER WARD- 7(2)(4) BANGALORE APPELLANT RESPONDENT ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE PAGE 2 OF 7 ITA NO. 2711/BANG/2018 ASSESSMENT YEAR: 2010-11 MR. HANUMANTHAIAH CHIKKAVEERAIAH NO.47, UDDANDAHALLI VILLAGE TAVAREKERE HOBLI BANGALORE SOUTH TALUK 560 082 PAN NO : AMYPC2999M VS. INCOME TAX OFFICER WARD- 7(2)(4) BANGALORE APPELLANT RESPONDENT ITA NO. 2712/BANG/2018 ASSESSMENT YEAR: 2010-11 MR. CHIKKAVEERAIAH NARASIMHAMURTHY NO.47, UDDANDAHALLI VILLAGE TAVAREKERE HOBLI BANGALORE SOUTH TALUK 560 082 PAN NO : AKMPN8079L VS. INCOME TAX OFFICER WARD- 7(2)(4) BANGALORE APPELLANT RESPONDENT ITA NO. 2713/BANG/2018 ASSESSMENT YEAR: 2010-11 MR. CHIKKAVEERAYYA GOPAL NO.47, UDDANDAHALLI VILLAGE TAVAREKERE HOBLI BANGALORE SOUTH TALUK 560 082 PAN NO : AUPPG1261L VS. INCOME TAX OFFICER WARD- 7(2)(4) BANGALORE APPELLANT RESPONDENT ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE PAGE 3 OF 7 APPELLANT BY : SHRI SUKESH PATIL, A.R. RESPONDENT BY : SMT. R. PREMI, D.R. DATE OF HEARING : 19.03.2020 DATE OF PRONOUNCEMENT : 19.03.2020 O R D E R PER BENCH: ALL THESE APPEALS FILED BY THE ASSESSEE ARE DIRECTE D AGAINST ORDERS PASSED BY LD. CIT(A)-7, BENGALURU IN THE RESPECTIVE HANDS OF THE ASSESSEES AND THEY RELATE T O THE ASSESSMENT YEAR 2010-11. SINCE THE ISSUES URGED BY THESE ASSESSEES ARE IDENTICAL AND ARE ARISING OUT O F COMMON SET OF FACTS, THEY WERE HEARD TOGETHER AND A RE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. TH E A.O. OF THE ASSESSEES HEREIN RECEIVED INFORMATION F ROM JOINT DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMIN AL INVESTIGATION, BENGALURU THAT THESE ASSESSEES ALONG WITH OTHER FAMILY MEMBERS HAVE SOLD A PROPERTY SITUATED AT CHUNCHANAKUPPA VILLAGE, TAVAREKERE HOBLI, BANGALORE SOUTH TALUK. IT WAS NOTICED THAT THE SAID PROPERTY WAS AN AGRICULTURAL LAND AND THESE PARTIES HAVE CONVERTED THE LAND AND SOLD IT ON 9.2.2010. THESE ASSESSEES RECE IVED A ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE PAGE 4 OF 7 SUM OF RS.70 LAKHS EACH AS THEIR SHARE IN SALE OF P ROPERTY. SINCE THESE ASSESSEES HAVE NOT FILED RETURN OF INCO ME, THE A.O. ISSUED A NOTICE U/S 148 OF THE INCOME-TAX ACT, 1961 ['THE ACT' FOR SHORT]. THEREAFTER, THE A.O. ISSUED NOTICE U/S 142(1) OF THE ACT ASKING THE ASSESSEE TO FILE RETUR N OF INCOME. SINCE THERE WAS NO RESPONSE FROM THE ASSES SEES, THE A.O. CONCLUDED ASSESSMENT IN THE HANDS OF EACH OF THE ASSESSEES BY ASSESSING THE AMOUNT OF RS.70 LAKH S. 3. BEFORE LD. CIT(A), THE ASSESSEES FURNISHED DO CUMENTS IN SUPPORT OF THE RECEIPT OF RS.70 LAKHS EACH, BUT THE LD. CIT(A) REFUSED TO ADMIT THESE EVIDENCES BY CITING R ULE 46A OF THE INCOME TAX RULES. ACCORDINGLY, HE CONFIRMED THE ADDITION MADE BY THE A.O. IN THE HANDS OF EACH OF T HE ASSESSEES. AGGRIEVED, THE ASSESSEES HAVE FILED THE SE APPEALS BEFORE US. 4. THE LD. A.R. SUBMITTED THAT THESE ASSESSEES HAVE SOLD AGRICULTURAL LAND AND HENCE THEY DID NOT FILE RETURN OF INCOME. HOWEVER, THE A.O. HAS CONCLUDED THE ASSESS MENT BY ASSESSING ENTIRE SALE CONSIDERATION, EVEN THOUGH HE WAS AWARE THAT THE LAND SOLD BY THE ASSESSEES WAS AGRICULTURAL LAND. IN ANY CASE, THE AO HAS NOT ALL OWED DEDUCTION TOWARDS INDEXED COST OF LAND. THESE ASSE SSEES HAVE INVESTED THE AMOUNTS IN PURCHASE OF RESIDENTIA L PROPERTY AND HENCE, EVEN IF THE CLAIM OF EXEMPTION IS ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE PAGE 5 OF 7 DENIED, THEY ARE ELIGIBLE FOR DEDUCTION U/S 54F OF THE ACT. ACCORDINGLY, HE SUBMITTED THAT THE ADDITIONAL EVIDE NCES FURNISHED BY THE ASSESSEES BEFORE LD. CIT(A) MAY BE ADMITTED AND THE MATTERS MAY BE RESTORED TO THE FIL E OF THE A.O. FOR EXAMINING IT AFRESH. 5. THE LD. D.R., ON THE CONTRARY, SUBMITTED THAT TH ESE ASSESSEES HAVE NOT CO-OPERATED BEFORE THE A.O. AND DID NOT FILE RETURNS OF INCOME ALSO. HENCE LD. CIT(A) H AS REFUSED TO ADMIT ADDITIONAL EVIDENCES. ACCORDINGLY SHE OPPOSED THE PRAYER OF THE LD A.R. 6. HAVING HEARD THE RIVAL CONTENTIONS, WE ARE OF TH E VIEW THAT, IN THE INTEREST OF NATURAL JUSTICE, THES E ASSESSEES SHOULD BE GIVEN AN OPPORTUNITY TO PRESENT THEIR CASE BEFORE THE A.O. SINCE THE ASSESSMENTS HAVE B EEN DONE U/S 144 OF THE ACT, THERE WAS NO OPPORTUNITY F OR THESE ASSESSEES AS WELL AS FOR THE AO TO COMPLETE T HE ASSESSMENT ON THE BASIS OF CORRECT FACTS. AS RIGHTL Y POINTED OUT BY THE LD A.R, THE A.O. HAS ASSESSED TH E ENTIRE SALE CONSIDERATION, EVEN THOUGH HE IS AWARE OF THE FACT THAT THE SALE CONSIDERATION WAS RECEIVED ON SA LE OF A LAND. THOUGH THE CHARACTER OF LAND IS IN DISPUTE, YET THE A.O. SHOULD HAVE COMPUTED CAPITAL GAIN INSTEAD OF ASSESSING ENTIRE SALE CONSIDERATION IF HE HAS NOT A CCEPTED THE CHARACTER OF LAND AS AGRICULTURAL LAND. THE AS SESSEES ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE PAGE 6 OF 7 ARE ALSO MAKING AN ALTERNATIVE PLEA FOR DEDUCTION U /S 54F OF THE ACT. WE NOTICE THAT NONE OF THESE FACTUAL A SPECTS COULD BE EXAMINED BY THE A.O. ACCORDINGLY, WE SET A SIDE THE ORDER PASSED BY LD. CIT(A) IN THE HANDS OF THE ASSESSEES HEREIN AND RESTORE ALL THE ISSUES TO THE FILE OF THE A.O. FOR EXAMINING THEM AFRESH IN ACCORDANCE WI TH LAW. THE ASSESSEES ARE ALSO DIRECTED TO FULLY COOP ERATE WITH THE A.O. BY FURNISHING ALL THE INFORMATION AND EXPLANATIONS THAT MAY BE CALLED FOR BY THE A.O. 7. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE S ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19.3.20 20 SD/- (PAVAN KUMAR GADALE ) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 19 TH MARCH, 2020. VG/SPS ITA NOS.2709 TO 2713/BANG/2018 MR. CHIKKAVEERAYYA CHIKKANNA AND OTHERS, BANGALORE PAGE 7 OF 7 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.