Farooqi Family Trust , Hyderabad V. Income Tax Officer, Ward-4(2), Hyderabad

ITA 338/Hyd/2019

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9902 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 18-12-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 01-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Sale consideration of property below Jantri Value; Capital Gains
• Section: 50C; 201; 147; 54; 144

Judgement Text

+ IN THE INCOME TAX A PPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I TA NO . 338 / HYD/201 9 ASSESSMENT YEAR: 2 0 0 7 - 08 FAROOQI FAMILY TRUST, HYDERABAD. PAN A AA TF 4607 Q VS. INCOME - TAX OFFICER, WARD 4(2), HYDERABAD. A PPELLANT RESPONDENT ASSESSEE BY: S H RI K.A. SAI PRASAD REVENUE BY: S HRI NILANJAN DEY DATE OF HEARING: 1 8 / 12 / 201 9 DATE OF PRONOUNCEMENT: 18 / 12 /201 9 O R D E R PER P. MADHAVI DEVI, J.M.: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT( A ) 8 , HYDERABAD DATED 22 /0 1 /201 9 FOR AY 200 7 - 0 8 . 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HAD SOLD A PLOT ADMEASURING 515 SQ. YDS. T O BAWARCHI RESTAURANT AT RTC X ROADS FOR A SALE CONSIDERATION OF RS. 70,00,000/ - DURING FY 2006 - 07 AS AGAINST THE MARKET VALUE OF THE SAME AT RS. 1,18,80,000/ - . THEREFORE, THE ASSESSMENT WAS REOPENED TO BRING TO TAX THE CAPITAL GAINS ARISING OUT OF THE SAID TRANSACTION. THE ASSESSEE OBJECTED TO THE PROPOSE D CAPITAL GAIN TAX BY APPLYING PROVISIONS OF SECTION 50C OF THE AC AND I.T.A. NO. 338 /HYD/1 9 FAROOQI FA MILY TRUST, HYD. 2 ALSO CLAIMED DEDUCTION U/S 54 OF THE ACT IN RESPECT OF THE INVESTMENT MADE IN A RESIDENTIAL HOUSE . HOWEVER, AO OBSERVED THAT THE ASSESSEE TRUST WAS FOR THE BENEFIT OF THE FAMILY MEMBERS IN THE TRUST AND AS THERE IS NO DEDUCTION U/S 54 AVAILABLE TO THE FAMILY TRUST, THE ENTIRE SALE CONSIDERATION AS PER THE SRO VALUE OF RS. 1,18,80,000/ - IS TO BE BROUGHT TO TAX. ACCORDINGLY, THE ASSESSMENT WAS COMPLETED U/S 144 RWS 147 OF THE ACT. 3. AGGRIE VED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) BY FILING WRITTEN SUBMISSIONS. HOWEVER, NONE APPEARED BEFORE THE CIT(A) FOR PERSONAL HEARING AND, THEREFORE, THE CIT(A) CONFIRMED THE ORDER OF AO AND THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUN AL. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS STRONG CASE ON MERITS AND, THEREFORE, THE ASSESSEE SHOULD BE GIVEN AN OPPORTUNITY OF HEARING BEFORE THE CIT(A). 5. THE LD. DR, ON THE OTHER HAND, SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND PARTICULARLY TO THE FACT THAT THE CIT(A) HAS NOT DISPOSED OF THE OBJECTIONS OF THE ASSESSEE RAISED IN THE DETAILED WRITTEN SUBMISSIONS FILED BEFORE HIM, WE ARE OF THE OPINION THAT THE ASSESSEE SHOULD BE PROVIDED A PROPER OPPORTUNITY OF PRESENTING ITS CASE BEFORE THE AO . IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO REMAND I.T.A. NO. 338 /HYD/1 9 FAROOQI FA MILY TRUST, HYD. 3 THE ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO DECIDE THE APPEAL IN ACCORDANCE WITH LAW AND AFTER PROVIDING REASONABLE OPPOR TUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 18 TH DECEMBER , 2019. SD/ - SD/ - (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER ( P. MADHAVI DEVI ) JUDICIAL MEMBER HYDERABAD, DATED 18 TH DECEMBER , 201 9. KV COPY FORWARDED TO: 1. M/S FAROOQI FAMILY TRUST, 1 - 8 - 565, RTC X ROADS, MUSHEERABAD, HYDERABAD 20. 2 . IT O , WARD 4 ( 2 ), HYDERABAD . 3 . CIT(A) - 8 , HYDERABAD. 4. 5. PR. CIT 1 , HYDERABAD. THE DR, ITAT, HYDERABAD 6 . GUARD FILE