M.S.Soundararajan, CHENNAI V. ITO, CHENNAI

ITA 3251/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4283 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 08-06-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 28-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: BHAVYA RANGARAJAN

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC C BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.3251/MDS/2016 ( / ASSESSMENT YEAR: 2006-07) SHRI M.S.SOUNDARARAJAN, NO.1, FLAT NO.D-16, IV FLOOR, NIAGARA APARTMENTS, STERLING ROAD, NUNGAMBAKKAM, CHENNAI 34. VS THE INCOME TAX OFFICER, BUSINESS WARD XV(3), CHENNAI 34. PAN: AKMPS8897B ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI BHAVYA RANGARAJAN, ADVOCATE /RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL. CIT /DATE OF HEARING : 08.06.2017 ! /DATE OF PRONOUNCEMENT : 14.06.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)- 4, CHENNAI DATED 26.09.2016 IN ITA NO.34/2014-15/A.Y.2 006- 07/CIT(A)-4 FOR THE ASSESSMENT YEAR 2006-07 PASSED U/S.250(6) R.W.S.143(3) & 147 OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS A PPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.AO HAS ERRED IN ASSESSING THE CAPITAL GAIN PERTAINING TO SALE OF JO INTLY OWNED PROPERTY IN THE HANDS OF THE ASSESSEE ONCE AGAIN WH EN THE SAME 2 ITA NO.3251/MDS/2016 WAS ALREADY ASSESSED IN THE HANDS OF THE ASSESSEES HUF AND THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF THE LD.AO. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL FILED HIS RETURN OF INCOME FOR THE ASSES SMENT YEAR 2006- 07 ON 31.07.2006, ADMITTING TOTAL INCOME OF RS.1,29 ,705/-. SUBSEQUENTLY THE CASE WAS REOPENED AND NOTICE U/S.1 48 OF THE ACT WAS ISSUED TO THE ASSESSEE AND THEREAFTER ASSES SMENT U/S.143(3) R.W.S. 147 OF THE ACT WAS COMPLETED VIDE ORDER DATED 28.03.2014, WHEREIN THE LD.AO ASSESSED LONG TERM CA PITAL GAIN OF RS.2,48,529/- IN THE HANDS OF THE ASSESSEE. ON APP EAL, THE LD.CIT(A) ALSO CONFIRMED THE ORDER OF THE LD.AO. 4. AT THE OUTSET, THE LD.AR SUBMITTED THAT THE LONG TERM CAPITAL GAIN ASSESSED IN THE HANDS OF THE ASSESSEE WAS ALREADY ASSESSED IN THE HANDS OF M.S. SOUNDARARAJAN (HUF) A ND THEREFORE IT WAS UNJUST TO ONCE AGAIN ASSESS THE SA ME INCOME IN THE HANDS OF THE ASSESSEE AS IT WOULD AMOUNT TO DOU BLE TAXATION. THE LD.AR PLEADED THAT THE MATTER MAY BE REMITTED B ACK TO THE FILE OF THE LD.AO FOR VERIFICATION. THE LD.DR COUL D NOT SUCCESSFULLY CONTROVERT TO THE SUBMISSION OF THE LD.AR AND THERE FORE DID NOT RAISE ANY SERIOUS OBJECTIONS FOR REMITTING THE MATT ER BACK TO THE FILE OF LD.AO FOR VERIFICATION OF THE CLAIM MADE BY THE LD.AR. 3 ITA NO.3251/MDS/2016 5. AFTER HEARING BOTH SIDES, IM OF THE CONSIDERED VIEW THAT THE MATTER REQUIRES TO BE LOOKED IN TO BY THE LD.AO BECAUSE IF THE CLAIM OF THE LD.AR PROVES TO BE GENUINE, THEN IT WO ULD AMOUNT INTO DOUBLE TAXATION RESULTING IN INJUSTICE TO THE ASSESSEE AND MISCARRIAGE OF JUSTICE. THEREFORE, I HEREBY REMIT T HE MATTER BACK TO THE FILE OF LD.AO TO VERIFY WHETHER THE LONG TERM G AIN ASSESSED IN THE HANDS OF THE ASSESSEE WAS ALREADY ASSESSED IN T HE HANDS OF THE ASSESSEES HUF AND IF FOUND SO, REFRAME THE ASS ESSMENT OF THE ASSESSEE BY EXCLUDING THE SAME. IF FOUND OTHER WISE, REINSTATE THE ORDER AFTER EXAMINING THE ISSUE IN ACCORDANCE W ITH LAW AND MERIT. IT IS ORDERED ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON THE 14 TH JUNE, 2017. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER '# /CHENNAI, $% /DATED 14 TH JUNE, 2017 JR % '( )( /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. , ( )/CIT(A) 4. , /CIT 5. (-. / /DR 6. .0 /GF