Sri Bayyana Ramesh, Vijayawada V. The CIT, Vijayawada

ITA 291/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2728 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-10-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 17-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T L PETER
• Keywords: Cost of acquisition; Set aside
• Section: 143(3); 263; 63

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 291 /VIZAG/ 20 10 ASSESSMENT YEAR : 2006 - 07 BAYYANA RAMESH VI JAYAWADA CIT VIJAYAWADA (APPELLANT) VS. (RESPONDENT) PAN NO.ADAPB3151G APPELLANT BY: SHRI T.L. PETER, DR RESPONDENT BY: SHRI G.V.N. HARI, CA ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER : - THIS APPEAL IS PREFERRED AGAINST THE ORDER OF THE CIT PAS SED U/S 263 OF THE ACT REVISING THE ORDER OF THE A.O. PASSED U/S 143(3) OF THE ACT AFTER HOLDING IT TO BE ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTEREST OF REVENUE. THE REASONS FOR HOLDING SO ARE THAT THE ASSESSING OFFICER HAS NOT INTERPRETED THE PROVIS IONS OF SECTION 50( C ) OF THE ACT AND HAS ADOPTED THE COST OF ACQUISITION OF THE LAND AS ON THE DATE OF SALE AGREEMENT. 2. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT EVEN ON MERIT, THE ASSESS EES CASE IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL IN THE CASE OF KODURU SATYA SRINIVAS VS. ACIT ITA NO.556/VIZAG/2008 IN WHICH THE TRIBUNAL HAS CATEGORICALLY HELD THAT THE SALE DEED RELATES BACK TO THE DATE OF AGREEMENT FOR SALE. THEREFORE, THE C OST OF ACQUISITION IS TO BE DETERMINED ON THE BASIS OF THE DATE OF SALE AGREEMENT. COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD. 3. THE LD. D.R. ON THE OTHER HAND HAS PLACED A RELIANCE UPON THE ORDER OF THE CIT. 2 4. WE HAVE CAREFULLY EXAMINE D THE ORDER OF THE LOWER AUTHORITIES AS WELL AS THE ORDER OF THE TRIBUNAL AND WE FIND THAT WHILE ADJUDICATING THE ISSUE, THE ASSESSING OFFICER HAS TAKEN THE DATE OF SALE AGREEMENT FOR THE PURPOSE OF COST OF ACQUISITION OF THE PROPERTY. WHEREAS ACCORDING T O THE CIT, IT SHOULD BE THE DATE OF THE EXECUTION OF THE SALE DEED. THE VIEW TAKEN BY THE ASSESSING OFFICER IS A PLAUSIBLE VIEW AS THE TRIBUNAL HAS TAKEN THE SAME VIEW IN THE CASE OF KODURU SATYA SRINIVAS VS. ACIT. THEREFORE, THE VIEW TAKEN BY THE ASSESS ING OFFICER IS APPROVED BY THE TRIBUNAL. UNDER THESE CIRCUMSTANCES, THE ASSESSEES CASE IS ALSO COVERED ON MERIT IN FAVOUR OF THE ASSESSEES BY THE AFORESAID ORDER OF THE TRIBUNAL. SINCE THE ASSESSING OFFICER HAS TAKEN ONE OF THE PLAUSIBLE VIEW, IT CANNOT BE REVERSED BY THE CIT SIMPLY FOR THE REASON THAT HE HAS DIFFERENT VIEW IN HIS MIND. WE THEREFORE, FIND NO MERIT IN THE ORDER PASSED U/S 2 63 BY THE CIT. ACCORDINGLY, WE SET ASIDE THE SAME. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. PRONOU NCED IN THE OPEN COURT ON 19.10 .20 10 SD/ - SD/ - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 19 TH OCTOBER , 20 10 COPY TO 1 BAYYANA RAMESH, D. NO.11 - 7 - 21, VARRE RAMANNA STREET, VIJAYAWADA - 520001 2 CIT VIJAYAWADA 3 THE CIT (A) , VIJAYAWADA 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM