KANCHANA S, CHENNAI V. ITO, NCW - 9 (2), CHENNAI

ITA 3388/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3331 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 17-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R ANITHA JCIT
• Assessee Lawyers: B SURESH
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice; Capital Gains
• Section: 143(3); 50C; 139(1); 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , !' #'$ % ! , & ' BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ' ./ ITA NO.3388/CHNY/2019 !( /ASSESSMENT YEAR: 2008-09 SMT. KANCHANA S, C/O. B. SURESH, CHARTERED ACCOUNTANT, NO.25/13, I FLOOR, AKBAR SAHIB STREET, TRIPLICANE, CHENNAI 600 005. [PAN: AWOPK 6349N] VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD-9(2), CHENNAI. ( ) /APPELLANT) ( *+) /RESPONDENT) ) , - / APPELLANT BY : SHRI B. SURESH, C.A *+) , - /RESPONDENT BY : MS. R. ANITHA, JCIT . ! , /& /DATE OF HEARING : 05.03.2020 01( , /& /DATE OF PRONOUNCEMENT : 05.03.2020 2 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -10, CHENNAI (HEREINAFTER CALLED AS CIT(A)) DATED 15.10.2019 F OR THE ASSESSMENT YEAR 2008-09. ITA NO.3388/CHNY/2019 :- 2 -: 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT NAMELY SMT. S. KANCHANA IS AN INDIVID UAL, DERIVING INCOME UNDER THE HEAD CAPITAL GAINS. THE RETURN OF INCOME FOR THE A.Y 2007-08 WAS NOT FILED WITHIN THE TIME PRESCRIBED U/ S. 139(1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HOWEVER , THE RETURN OF INCOME WAS FILED ON 24.02.2014 AFTER RECEIPT OF THE LETTER ISSUED BY ACIT, NON- CORPORATE CIRCLE-9, CHENNAI CALLING UPON THE INFORM ATION REGARDING SALE OF PROPERTY. SUBSEQUENTLY, BASED ON THE INFORMATIO N THAT THE APPELLANT SOLD PROPERTY DURING THE PREVIOUS YEAR RELEVANT TO THE A.Y UNDER CONSIDERATION FOR APPARENT CONSIDERATION OF RS. 16, 00,000/- AS AGAINST THE GUIDELINES VALUE FOR THE PURPOSE OF THE REGISTR ATION OF THE SALE DEED OF RS. 1,26,60,000/-. BASED ON THIS INFORMATION, THE I TO, NON CORPORATE WARD-9(2), CHENNAI (HEREINAFTER AO) FORMED OPINIO N THAT THE INCOME ESCAPED ASSESSMENT TO TAX, ACCORDINGLY, A NOTICE U/ S. 148 OF THE ACT WAS ISSUED TO THE APPELLANT ON 19.03.2015. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE AO VIDE ORDER D ATED 14.03.2016 PASSED U/S. 143(3) OF THE ACT AT TOTAL INCOME OF RS . 1,17,65,240/- ADOPTING THE GUIDELINES VALUE FOR STAMP DUTY PURPOS E AS DEEMED CONSIDERATION U/S. 50C OF THE ACT WHILE COMPUTING I NCOME UNDER CAPITAL GAIN ARISING ON SALE OF PROPERTY. ITA NO.3388/CHNY/2019 :- 3 -: 5. BEING AGGRIEVED BY THE ABOVE ASSESSMENT ORDER, A N APPEAL WAS PREFERRED BEFORE LD. CIT(A), WHO VIDE IMPUGNED ORDE R DISMISSED THE APPEAL, HOWEVER, WITH A DIRECTION THAT THE VALUATIO N DONE BY THE DVO BE TAKEN AS DEEMED CONSIDERATION AO OVERRULING OBJECTI ONS FILED BY THE ASSESSEE AGAINST THE DVOS REPORT. BEING AGGRIEVED BY THE ORDER OF LD. CIT(A), THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 6. THE LD. COUNSEL SUBMITTED BEFORE US THAT THE LD. CIT(A), WHO HEARD THE MATTER IS DIFFERENT FROM THE CIT(A), WHO PASSED THE ORDER. THE NEW INCUMBENT PASSED ORDER WITHOUT HEARING THE APPELLAN T. THUS, HE SUBMITTED THAT THE ORDER PASSED BY THE LD. CIT(A) I S AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 7. THE LD. CIT-DR HAD NOT CONTROVERTED THE ABOVE SU BMISSIONS OF THE ASSESSEE. 8. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED MATER IAL AVAILABLE ON RECORD. IN VIEW OF THE ABOVE UNDISPUTED SUBMISSION S, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER SHOULD GO BACK T O THE FILE OF LD. CIT(A) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LA W AFTER AFFORDING A REASONABLE OPPORTUNITY BEING HEARD TO THE APPELLANT . ITA NO.3388/CHNY/2019 :- 4 -: 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THE 05 TH DAY OF MARCH, 2020 IN CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( #'$ % ! ) (INTURI RAMA RAO) & /ACCOUNTANT MEMBER /CHENNAI, 3' /DATED: 05 TH MARCH, 2020. EDN, SR. P.S 2 , */45 65(/ /COPY TO: 1. ) /APPELLANT 2. *+) /RESPONDENT 3. . 7/ ( )/CIT(A) 4. . 7/ /CIT 5. 5!89 */ /DR 6. 9 : /GF