Sri Subramaniaiyear Krishnaswamy , Bangalore V. Assistant Commissioner of Income Tax Circle-3(3)(1), Bangalore

ITA 335/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7096 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 25-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S. SUKUMAR
• Keywords: Principle of natural justice; TDS; Set aside
• Section: 54F; 20

Judgement Text

ITA NO.335(B)/20 1 IN T HE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : B, BANGALORE BEFORE SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND SMT BEENA PILLAI, JUDICAL MEMBER ITA NO.335(BANG)/2019 (ASSESSMENT YEAR : 2015 - 16) SRI SUBRAMANIAIYER KRISHNASWAMY NO.39, SASTHA NIVAS, 2 ND CROSS, BIMAJYOTHI LIC COLONY, WEST OF CHORD ROAD, BANGALORE - 560 0 79 PAN NO.AAA PK7348H APPELLANT THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 3( 3 )( 1 ), BANGALORE RESPONDENT APPELLANT BY : SHRI S. SUKUMAR, A DVOCATE REVENUE BY : SRI R.N.SIDDAPPAJI, ADDL.CIT DATE OF HEARING : 09 - 07 - 2019 DATE OF PRONOUNCEMENT : 24 - 07 - 2019 O R D E R PER SMT BEENA PILLAI, JUDICIAL MEMBER PR ESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 28/12/18 PASSED BY LD. CIT (A) - 3, BANGALORE FOR ASSESSMENT YEAR 2015 - 1 6 ON FOLLOWING GROUNDS OF APPEAL. 1. THE IMPUGNED ORDER IS UNJUST AND MUCH AGAINST ALL KNOWN CANONS OF LAW. 2. THE LEARNED ASSESSING OFFICER. ACIT, CIRCLE 3(1)(1) HAS SERIOUSLY ERRED IN CONSIDERING THAT THE FIRST INDEPENDENT HOUSE PROPERTY AS MULTIPLE UNITS. 3. THE HONORABLE CIT(A) 3 HAS CONSIDERED THE FACTS OF CASE, AND HAS UPHELD THE STAND OF THE ASSESSING OFFICER BY CONSIDERING HOUSE PROPERTY AS RESIDENTIAL PROPERTY ITA NO.335(B)/20 2 ONLY. HOWEVER, DISMISSING THE APPEAL FOR NON APPEARANCE OF APPELLANT OR HIS AUTHORIZED REPRESENTA TIVE IN PERSON BEFORE THE HON'BLE COMMISSIONER APPEALS - 3, BANGALORE. 4. THE HONORABLE CIT(A) 3 HAS NOT CONSIDERED THE SUBMISSION MADE ON ONLINE ON 13/11/2018 AND 06/12/2018. THE FACTS ARE AS UNDER: 1) THE PETITIONER IS A RETIRED EMPLOYEE OF M/S LIFE INSURANCE CORPORATION OF INDIA, AND IS 81 YEARS OLD, AND HAS BEEN UNAWARE OF THE WAY OF REPRESENTATION BEFORE HONORABLE CIT (A) 3. 2) THE PETITIONER HAS COMPLETELY RELIED UPON THE AUTHORIZED REPRESENTATIVE TO PRESENT THE CASE BEFORE HONORABLE CIT (A) 3, WHO IN TURN HAS MADE THE SUBMISSIONS ONLINE RATHER THAN SUBMITTING THE SAME PHYSICALLY AND APPEARING BEFORE CIT (A) 3 FOR ONGOING PROCEEDINGS OF THE CASE. 3) THE PETITIONER INTENDED TO ABIDE BY THE LAW AND NOT TO VIOLATE ANY ACT, BUT WAS UNAWARE OF THE PROCESS AND PROCEEDINGS BEFORE THE VARIOUS INCOME TAX AUTHORITIES. 4) DUE TO APPELLANT'S AGE FACTOR AND HEALTH ISSUES, HE WAS PURELY DEPENDENT ON AUTHORIZED REPRESENTATIVE AND IT WAS UNFAIR AND UNLAWFUL TO DISMISSING THE GROUNDS ONLY BECAUSE OF NON APPEARANCE IN PERSON BY AUTHORIZED REPRESENTATIVE. 5) THE HONORABLE CIT(A) 3 HAS DISMISSED THE APPEAL ONLY ON THE GROUND THAT THE PETITIONER OR HIS AUTHORIZED REPRESENTATIVE HAS NOT APPEARED, AND NOT MADE ANY SUBMISSIONS PHYSICALLY. IN THIS CONNECTION THE PETITIONER HUMBLY PRAYS THAT THE NECESSARY DOCUMENTS WERE UPLOADED THROUGH E - PROCEEDINGS OPTION IN THE OFFICIAL WEB SITE OF TH E INCOME TAX DEPARTMENT, AND THE PETITIONER IS NOT HAVING ANY INTENSION TO AVOID OR IGNORE THE ONGOING PROCEEDINGS BEFORE THE HONORABLE CIT(A) 3, BANGALORE. ITA NO.335(B)/20 3 6) BRIEF DETAILS OF THE PROPERTIES HELD, SOLD AND PURCHASED AS AT 31 ST MARCH, 2015 ARE AS UNDER: SI. NO. DATE OF TRANSACTION DESCRIPTION OF THE PROPERTY REMARKS 1 NO.39, SASTA N IVAS, BHIMA JYOTHI LIC COLONY, 2 ND CROSS, WEST OF CHORD ROAD, RAJAJI NAGAR, BANGALORE - 560079 OBTAINED CONSTRUCTION PERMISSION FOR G+ 2, SELF OCCUPIED IN 1 ST FLOOR, LET OF OF GROUND AND SECOND FLOOR, PROOF OF THE SAME, SALE DEED COPY, PLAN APPROVAL, KHATAAND TAX PAID RECEIPTS WERE ENCLOSED AS PER ANNX - 1 2 23/03/2005 PURCHASE OF 1.03 ACRES AGRICULTURAL LAND AT HOSUR COPY OF THE SALE DEED NO.2503/2005 DATED 23/03/2005 ENCLOSED AS PER ANNX - 2 3 02/09/2014 SALE OF 1.03 ACRES OF AGRICULTURAL LAND AT HOSUR COPY OF THE SALE DEED NO.12223/2014 DATED 02/09/2014 AS PER ANNX 3, THE FUNDS BEING USED TOWARDS PURCHASE OF HOUSE PROPERTY 4 18/03/2015 PURCHASE OF HOUSE PROPERTY AT BANGALORE SA LE PROCEEDS OF AGRICULTURAL LAND HAVE BEEN USED TOWARDS PURCHASE OF HOUSE PROPERTY AT BANGALORE AS PER SALE DEEDNO.10036/201 4 - 15 BY CLAIMING 54F. 7) THE PETITIONER STATES ONCE AGAIN THAT HE IS HAVING ONLY ONE RESIDENTIAL HOUSE PROPERTY AT THE TIME OF SALE OF AGRICULTURAL LAND AT HOSUR AND HAS INVESTED THE SALE PROCEEDS INTO A HOUSE PROPERTY AT BANGALORE IN FAVOR OF SELF, SON AND DAUGHTER - IN - LAW, 8) THE PETITIONER ALSO SUBMITS THAT THE HONORABLE CIT (A) 3 CONSIDER THE FACT OF THE SINGLE HOUSE PROP BEING HELD BY HE PETITIONER AT THE TIME OF INVESTMENT IN 2 ND HOUSE PROPERTY AS AT 18/03/2015. ITA NO.335(B)/20 4 9) 9) THE PETITIONER HAS PAID APPEAL FEE OF RS.10,000/ - VIDE CHALLAN ENCLOSED. 10) FOR THE DETAILED REASONS MENTIONED ABOVE AND WHICH ARE GOING TO BE URGED AT THE TIME OF HEARING, THIS AUTHORITY MAY BE PLEASED TO DELETE THE IMPUGNED DISALLOWANCE U/S 54F IN THE INTEREST OF JUSTICE AND EQUITY. 11) THE APPELLANT, HUMBLY PRAYING THE APPELLATE AUTHORITY TO KINDLY ALLOW THE GROUNDS OF APPEAL 2ND WHERFORE, THE APPELLANT PRAYS THAT FOR THE REASONS ABOVE AND SATED IN THE GROUNDS OF 3. PEAL AND STATEMENT OF FACT, THIS AUTHORITY MAY BE PLEASED TO DELETE THE IMPUGNED ADDITIONS IN THE INTEREST OF JUSTICE AND EQUITY. 2. AT THE OUTSET LD. AR SUBMITTED THAT LD. CIT (A) HAS DISMISSED THE APPEAL FOR NONAPPEARANCE AND NONPRODUCTION OF RELEVANT IN SUPPORT OF HIS CLAIM. HE SUBMITTED THAT LD. CIT (A) ERRED IN RECORDIN G THE NON - COMPLIANCE OF NOTICES ISSUED BY THE DEPARTMENT. REFERRING TO PAGE NO. 20 OF PAPER BOOK FILED BEFORE US, LD. AR SUBMITTED THAT ALL THE DETAILS TO DEFEND ASSESSMENT ORDER WAS FILED ELECTRONICALLY BEFORE LD. CIT (A) WHICH IS SELF - EXPLANATORY. HE SUB MITTED THAT ASSESSEE ON 13/11/18 HAD FILED ALL REQUISITE DETAILS BY WAY OF WRITTEN SUBMISSIONS, POWER OF ATTORNEY BEFORE LD. CIT (A) AND LD. CIT (A) WHILE PASSING THE ORDER HAS IGNORED THESE SUBMISSIONS WHICH ARE APART OF RECORD. LD. AR THUS CONTENDED THAT IN NON - DISPOSAL OF ISSUES ON MERITS WITHOUT CONSIDERING THE SUBMISSIONS FILED HAS CAUSED GREAT PREJUDICE TO THE ASSESSEE. LEARN SENIOR DR THOUGH SUPPORTED THE ORDER OF LD.CIT (A), BUT COULD NOT REFUTE CONTENTS OF THE E PROCEEDINGS RESPONSE ACKNOWLEDGEMENT , PLACED AT PAGE 20 OF PAPER BOOK. ITA NO.335(B)/20 5 4. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SIDES IN THE LIGHT OF THE RECORDS PLACED BEFORE US. 4.1 IT IS OBSERVED THAT THE SUBMISSIONS ADVANCED BY ASSESSEE IS PART OF RECORD AND HAS BEEN FILED BEFORE LD. CIT (A) ON 13/11/18, AS PER THE NOTICE ISSUED BY THE 1 ST APPELLATE AUTHORITY. HOWEVER, LD. CIT (A) CHOSE NOT TO CONSIDER THE SUBMISSIONS AND HAS DISMISSED THE APPEAL FILED BY ASSESSEE BY WRONGLY OBSERVING TH AT NO DETAILS HAS BEEN BROUGHT ON RECORD IN SUPPORT OF THE CLAIM OF ASSESSEE. IN OUR CONSIDERED OPINION LD. CIT (A) OUGHT TO HAVE CONSIDERED AND HAVE SHOULD HAVE PASSED A SPEAKING ORDER ON MERITS. THEREFORE IN THE INTEREST OF NATURAL JUSTICE WE SET ASIDE T HIS ISSUE BACK TO LEARN CIT (A) WITH A DIRECTION TO CONSIDER THE CLAIM OF ASSESSEE IN THE LIGHT OF THE SUBMISSIONS ON RECORD AS PER LAW. LEARN CIT (A) SHALL GIVE PROPER OPPORTUNITY TO ASSESSEE OF BEING HEARD AND ALSO SHALL CALL FOR ANY OTHER DETAILS AS REQ UIRED FOR IN ORDER TO ADJUDICATE THE ISSUE ON MERITS. ASSESSEE SHALL COOPERATE WITH LD. CIT (A) AND FILE ALL NECESSARY REQUISITE DETAILS AS CALLED FOR. NEEDLESS TO SAY THAT PROPER OPPORTUNITY SHALL BE GRANTED BY LD. CIT (A) AS PER LAW. ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24 - 07 - 2019 SD/ - SD/ - (B.R.BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 - 07 - 2019. *A M COPY OF THE ORDER FORWARDED TO: ITA NO.335(B)/20 6 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.GUARD FILE BY ORDER ASST. REGISTRAR ITA NO.335(B)/20 7 ITA NO.335(B)/2019 8 ITA NO.335(B)/2019 9