PARASURAMAN RAMAMOORTHY, CHENNAI V. ITO, NCW-21(3), CHENNAI

ITA 3347/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4127 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 07-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Capital Gains

Judgement Text

, / SMC , IN THE INCOME TAX APPELLATE TRIBUNAL A/SMC BENCH, CHENNAI . . . , , ! ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 3347/CHNY/2018 / ASSESSMENT YEAR : 2015-16 SHRI. PARASURAMAN RAMAMOORTHY, NO.4/2, FLAT NO. 2-A, SHREE GURUKRIPA CROSS STREET, SANKARESWARI NAGAR, WEST K.K. NAGAR, CHENNAI 600 078. [PAN: AADPR 1093F] VS. INCOME TAX OFFICER, NEW CORPORATE WARD 21(3), CHENNAI. ( / APPELLANT) ( #$%& /RESPONDENT ) %& ' ( / APPELLANT BY : SHRI. M. VEERABATHRAN PRASANTH, ADVOCATE #$%& ' ( / RESPONDENT BY : SHRI. AR V SREENIVASAN, JCIT * '+! /DATE OF HEARING : 20.11.2019 ,-. '+! /DATE OF PRONOUNCEMENT : 18.02.2020 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-9 I/C, CHENNAI IN ITA NO. 32/CIT(A)-9/2017-18 DATED 26.09.2018 FOR ASSESSMENT YEAR 2015-16. :-2-: ITA NO.3347/CHNY/2018 2. SHRI PARASURAMAN RAMAMOORTHY, THE ASSESSEE, CLAI MED CAPITAL GAINS ON SALE OF A PROPERTY. WHILE MAKING THE ASSE SSMENT FOR ASSESSMENT YEAR 2015-16, THE ASSESSING OFFICER FOUN D THAT THE ASSESSEE CLAIMED CAPITAL GAIN OVER AND ABOVE THE REGISTERED SALE DEED AT RS. 15,00,000/-. THEREFORE, HE REQUIRED THE ASSESSEE T O FURNISH THE RELEVANT MATERIAL AND SATISFY THE CAPITAL GAIN EXEM PT CLAIM. THE ASSESSEE FILED A LETTER FROM THE PURCHASER OF THE P ROPERTY CONFIRMING THE PAYMENT OF RS. 15,00,000/- THROUGH BANKING TRANSACT ION TOWARDS FITTING AND FURNITURE, EQUIPMENTS, INTERIOR, POOJA ROOM, PR OVIDING STEEL GRILLS FOR BALCONIES AND DOOR OF THE PROPERTY PURCHASED. AFTE R CONSIDERING THE ASSESSEES REPLY ETC., THE AO REFUSED TO ALLOW THE LONG TERM CAPITAL GAIN ON THIS ISSUE. AGGRIEVED, THE ASSESSEE FILED AN AP PEAL BEFORE THE CIT(A). THE LD. CIT(A) DISMISSED THE APPEAL. AGGR IEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE LD. AR SUBMITTED THAT THE ASSESSING OFFICER HAVING OBSERVED THAT THE FITTING AND FURNITURE ETC ARE MOVABLE ASSE TS AND HAVING RECEIVED THE CONFIRMATION LETTER FROM THE PURCHASER THAT HE HAS PAID RS. 15,00,000/- TO THE ASSESSEE THROUGH BANKING CHANNEL , SHOULD HAVE ALLOWED THE ASSESSEES CLAIM OF CAPITAL GAIN ON THE SUM. THEREFORE, HE PLEADED THAT THE ASSESSEES APPEAL BE ALLOWED. PER CONTRA, THE LD. DR SUBMITTED THAT THIS IMPUGNED PART OF THE CONSIDERAT ION WAS NOT FOUND IN :-3-: ITA NO.3347/CHNY/2018 THE SALE DEED. AS PER THE CONFIRMATION LETTER, SUC H PAYMENTS TOWARDS FITTING AND FURNITURE ETC WAS MADE ON 07.05.2014, W HEREAS, THE SALE DEED WAS REGISTERED ON 23.05.2014. SINCE, THE REGI STERED DEED DOES NOT MENTIONED THE IMPUGNED SALE CONSIDERATION AND T HE ASSESSEE HAS NOT PROVIDED ANY MATERIAL BEFORE THE LOWER AUTHORIT IES TO SATISFY THAT THOSE ITEMS CLAIMED BY THE ASSESSEE HAVING BEEN SOL D WERE IN THE HOUSE ETC., THE LOWER AUTHORITIES ARE CORRECT IN RE JECTING THE ASSESSEES CLAIM AND HENCE HE SUPPORTED THE ORDERS OF THE LOWE R AUTHORITIES. 4. WE HEARD THE RIVAL SUBMISSIONS. THE ASSESSEE CL AIMED THAT HE HAS RECEIVED RS. 1,50,00,000/- AS SALE CONSIDERATIO N, WHICH COMPRISES RS. 1,35,00,000/- TOWARDS THE PROPERTY AS PER THE R EGISTERED DOCUMENT AND RS. 15,00,000/- WAS PAID TOWARDS FITTING AND FU RNITURE ETC AS SPECIFIED, SUPRA. THEREFORE, THE ASSESSEE SEEKS LO NG TERM CAPITAL GAIN FOR THE ENTIRE 1,50,00,000/-. HOWEVER, THE REGISTE RED DOCUMENT HAS SHOWN THE SALE CONSIDERATION AT RS. 1,35,00,000/- O NLY. IT IS CLEAR FROM THE ABOVE THAT THE PURCHASER HAS PAID THE IMPUGNED SUM OF RS. 15,00,000/- THROUGH BANKING CHANNEL, WHICH WAS CONF IRMED AND ALSO ACCEPTED BY THE ASSESSEE. THIS FACT IS NOT DISPUTE D BY THE AO. IN SUCH FACTS AND CIRCUMSTANCES, THE IMPUGNED TRANSACTIONS HAVE TO BE TREATED TOWARDS MOVABLE ASSETS, EXTRA AMENITIES ETC AS CLAI MED BY THE ASSESSEE. HOWEVER, THE ASSESSEE HAS FURNISHED THE REQUIRED PARTICULARS :-4-: ITA NO.3347/CHNY/2018 IN RESPECT OF THEM BEFORE THE LOWER AUTHORITIES. I N THE FACTS AND CIRCUMSTANCES, WE REMIT THIS ISSUE BACK TO THE AO F OR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY RELEVANT MAT ERIALS IN SUPPORT OF HIS CONTENTION BEFORE THE AO AND COMPLY WITH THE R EQUIREMENTS OF THE AO IN ACCORDANCE WITH LAW. THE AO IS FREE TO CONDUC T APPROPRIATE ENQUIRY AS DEEMED FIT, BUT HE SHALL FURNISH ADEQUA TE OPPORTUNITY TO THE ASSESSEE ON THE MATERIAL ETC TO BE USED AGAINST IT AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON TUESDAY, THE 18 TH FEBRUARY, 2020 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ! ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, / /DATED: 18 TH FEBRUARY, 2020 JPV '#+0121.+ /COPY TO: 1. %& / APPELLANT 2. #$%& /RESPONDENT 3. * 3+ ) ( /CIT(A) 4. * 3+ /CIT 5. 14#+ /DR 6. 567 /GF