The Income Tax Officer, Ward-1 (3), Belagavi., Belagavi V. Sri Raghavendra Avinash Ajgaokar., Belagavi

ITA 309/PAN/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1376 (ITAT-PANAJI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 03-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAF
• Assessee Lawyers: V G PATIL CA K M MAHESH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI N.S. SAINI, HON'BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 309/PNJ/2015 : (A.Y 2012 - 13) INCOME TAX OFFICER, WARD - 1(3), BELGAUM (APPELLANT) VS. RAGHAVENDRA AVINASH AJGAONKAR 368, OLD P.B. ROAD, OPP. PAI PETROL STORES, BELAGAVI PAN : ACXPA7841E (RESPONDENT) ITA NO. 310/PNJ/2015 : (A.Y 2012 - 13) ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 1, BELAGAVI (APPELLANT) VS. MANDAR AVINASH AJGAONKAR 368/2, OLD P.B. ROAD, OPP. PAI TRANSPORT, BELAGAVI PAN : ABYPA5214F (RESPONDENT) ASSESSEE BY : V.G. PATIL, CA REVENUE BY : K.M. MAHESH, DR DATE OF HEARING : 14/09/2015 DATE OF PRONOUNCEMENT : 14/09/2015 O R D E R PER GEORGE MATHAN : 1. ITA NO. 309/PNJ/2015 IS AN APPEAL FILED BY THE REVENUE IN THE CASE OF RAGHAVENDRA AVINASH AJGAONKAR AGAINST THE ORDER OF THE CIT(A), BELAGAVI IN ITA NO. 529/BGM/2014 - 15 DT. 11.5.2015 FOR THE A.Y 2012 - 13 AND ITA NO. 310/PNJ/2015 IS AN APPEAL FILED BY THE REVENUE IN THE CASE OF MANDAR AVINASH 2 ITA NOS. 309 & 310/PNJ/2015 (A.Y : 2012 - 13) AJGAONKAR AGAINST THE ORDER OF THE CIT(A), BELAGAVI IN ITA NO. 528/BGM/2014 - 15 DT. 11.5.2015 FOR THE A.Y 2012 - 13. 2. AS BOTH THE APPE ALS CONTAIN IDENTICAL ISSUE AND ARE INTER - CONNECTED, THEY ARE DISPOSED OFF BY THIS COMMON ORDER. SHRI K.M. MAHESH, LD. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI V.G. PATIL, CA REPRESENTED ON BEHALF OF THE ASSESSEES. 3. IT WAS SUBMITTED BY THE LD. DR THAT THE ONLY ISSUE IN BOTH THE APPEALS WAS AGAINST THE ACTION OF THE LD. CIT(A) IN ALLOWING DEDUCTION OF RS. 1 CRORE U/S 54EC OF THE ACT DESPITE THE LIMITATION OF RS. 50 LACS AVAILABLE UNDER THE SAID PROVISION. IT WAS THE SUBMISSION THAT THE ASSESSEE S HEREIN HAD INVESTED THE LONG TERM CAPITAL GAINS TO AN EXTENT OF RS. 1 CRORE EACH IN 54EC BONDS. IT WAS THE SUBMISSION THAT THE ASSESSEES HAD INVESTED RS. 50 LACS EACH ON 31.12.2011 AND ANOTHER RS. 50 LACS EACH ON 31.5.2012. IT WAS THE SUBMISSION THAT T HE AO HAD ALLOWED THE DEDUCTION U/S 54EC ONLY IN RESPECT OF THE INVESTMENTS OF RS. 50 LACS ON 31.12.2011. IT WAS THE SUBMISSION THAT THE LD. CIT(A) HAD DIRECTED ALLOWANCE OF DEDUCTION OF 54EC EVEN IN RESPECT OF THE INVESTMENTS MADE BY THE ASSESSEES ON 31. 5.2012. IT WAS THE SUBMISSION THAT THE ORDER OF THE LD. CIT(A) WAS LIABLE TO BE REVERSED. 4. IN REPLY, THE LD. AR SUBMITTED THAT THE ISSUE WAS SQUARELY COVERED BY THE DECISION OF THE HON'BLE MADRAS HIGH COURT IN THE CASE OF COROMANDEL INDUSTRIES LTD. REP ORTED IN 370 ITR 5 86 WHEREIN THE HON'BLE MADRAS HIGH COURT HAS CATEGORICALLY HELD THAT THE AMENDMENT TO THE PROVISION S OF SEC. 54EC WOULD TAKE EFFECT FROM 1.4.2015 AND BEFORE THE SAID DATE , THE DEDUCTION U/S 54EC WOULD BE AVAILABLE EVEN IF THE ASSESSEE HAS MADE INVESTMENT IN TWO DIFFERENT FINANCIAL YEARS PROVIDED THE SAME IS WITHIN 6 MONTHS PERIOD FROM THE DATE OF THE TRANSFER. 3 ITA NOS. 309 & 310/PNJ/2015 (A.Y : 2012 - 13) 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE LD. CIT(A) HAS FOLLOWED THE DECISION OF THE HON'BLE MADRAS HIGH COURT IN THE CASE OF COROMANDEL INDUSTRIES LTD. REFERRED TO SUPRA AND AS THE REVENUE HAS NOT BEEN ABLE TO POINT OUT ANY DECISION TO THE CONTRARY, WE ARE OF THE VIEW THAT THE FINDING OF THE LD. CIT(A) ON THIS ISSUE IS ON A RIGHT FOOTING AND DOE S NOT CALL FOR OUR INTERFERENCE. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/09/2015. S D / - (N.S. SAINI) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 14/09/ 201 5 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT S (I) RAGHAVENDRA AVINASH AJGAONKAR & (II) MANDAR AVINASH AJGAONKAR (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 4 ITA NOS. 309 & 310/PNJ/2015 (A.Y : 2012 - 13) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 14/09/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1 5 /09/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1 5 /09/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 1 5 /09/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 1 5 /09/2015 SR.PS 6. DATE OF PRONOUNCEMENT 14/09/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 1 5 /09/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER