K.Chandrakala , Hyderabad V. Income Tax Officer, Ward-15(3), Hyderabad

ITA 341/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7011 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 30-10-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 12-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOOKAMBI KEYAN S
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Additional evidence; Condonation of delay; Capital Gains

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER I.T.A. NO. 341/HYD/2019 ASSESSMENT YEAR: 2008-09 K.CHANDRAKALA, HYDERABAD [PAN: AHBPK7518D] VS INCOME TAX OFFICER, WARD-15(3), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, AR FOR REVENUE : SHRI MOOKAMBIKEYAN S. DR DATE OF HEARING : 30-10-2019 DATE OF PRONOUNCEMENT : 31-10-2019 O R D E R THIS APPEAL FILED BY THE ASSESSEE FOR THE AY.2008-09 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCO ME TAX (APPEALS)7, HYDERABAD, DATED 22-09-2017. 2. AT THE OUTSET, IT IS SEEN THAT THERE IS A DELAY OF 431 D AYS IN FILING OF THIS APPEAL BEFORE THE TRIBUNAL. THE ASS ESSEE FILED AN APPLICATION FOR CONDONATION OF DELAY ALONG WITH HE R AFFIDAVIT, STATING THAT THE ORDER OF THE CIT(A) WAS NOT R ECEIVED BY HER AND THEREFORE, SHE HAD APPROACHED THE OFFICE OF THE CIT(A) AND OBTAINED A CERTIFIED COPY OF THE ORDER, DUE TO WHICH, THERE IS A DELAY OF 431 DAYS. THE ASSESSEE ALSO SUBM ITTED THAT SHE HAS STUDIED ONLY UPTO 10 TH STANDARD AND IS NOT FULLY ACQUAINTED WITH THE INCOME TAX PROCEEDINGS AND HAS G IVEN AUTHORISATION ON HER BEHALF TO HER AUTHORISED REPRESEN TATIVE, ITA NO. 341/HYD/2019 :- 2 -: WHO DID NOT APPRISE THE ASSESSEE ABOUT THE FINALISATION OF PROCEEDINGS. TAKING THE SAME INTO CONSIDERATION AND ALSO THE MERITS OF THE CASE, I AM INCLINED TO CONDONE THE DELAY AND DE CIDE THE MERITS OF THE CASE OF THE ASSESSEE. 3. DURING THE RELEVANT FINANCIAL YEAR, THE ASSESSEE HA D SOLD A HOUSE PROPERTY BEARING NO.2-4-614, CIB QUARTER NO. B/32, ADMEASURING 50 SQ.YDS., SITUATED AT KACHIGUDA, AMBERP ET, HYDERABAD FOR A SALE CONSIDERATION OF RS.8 LAKHS. TH E AO OBSERVED THAT THE MARKET VALUE OF THE PROPERTY IS RS.14,76,000/- AND SINCE THE ASSESSEE DID NOT FILE T HE RETURN OF INCOME ADMITTING THE INCOME FROM CAPITAL GAINS, TH E AO ISSUED A NOTICE U/S.148 OF THE OF THE INCOME TAX ACT [A CT] AND RE-OPENED THE ASSESSMENT AND THE ASSESSMENT WAS COMPL ETED U/S.144 OF THE ACT. SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE, THE AO BROUGHT THE LONG TERM CAPITAL GAIN OF RS.12,75,699/- TO TAX. 3.1. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEF ORE THE CIT(A), POINTING OUT CERTAIN DEFICIENCIES IN THE PROP ERTY AND SUBMITTED THAT THE PROPERTY COULD NOT BE VALUED AS PER MARKET VALUE AS MENTIONED BY THE AO. THE CIT(A) OBSERVED THA T NO EVIDENCE WAS FURNISHED BY THE ASSESSEE IN SUPPORT OF HER CLAIM THAT THE PROPERTY WHICH WAS SOLD, HAD THE DEFICIENCIES AS POINTED OUT BY THE LD.AR OF THE ASSESSEE. THEREFORE, TH E CIT(A) CONFIRMED THE ADDITION MADE BY THE AO AND THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL. ITA NO. 341/HYD/2019 :- 3 -: 4. BEFORE ME, THE ASSESSEE HAS FILED ADDITIONAL EVIDE NCE, WHICH IS THE SRO CERTIFICATE, WHEREIN THE MARKET VALUE OF THE PROPERTY IS SHOWN AS RS.9,000/- PER SQ.YD., AND RS. 540 PER SQ.FT. ACCORDING TO THE CERTIFICATE, THE VALUATION OF TH E LAND ON WHICH PROPERTY IS BUILT WOULD BE RS.4,50,000/-, AND THE VALUE OF SUCH A SMALL PROPERTY WOULD DEFINITELY NOT BE THE CONSIDERATION ALLEGEDLY TO BE THE MARKET VALUE. SINCE THE BASIS FOR ADOPTING THE MARKET VALUE AT RS.14,60,000/- BY THE AO IS NOT AVAILABLE ON RECORD, I AM OF THE OPINION THAT THE I SSUE NEEDS RE-VERIFICATION AND THE SAME IS TO BE REMITTED BA CK TO THE FILE OF AO FOR FRESH ADJUDICATION, AFTER CONSIDERING THE SRO VALUE AS SUBMITTED BY THE ASSESSEE. THEREFORE, I AM IN CLINED TO ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND REMIT THE ISSUE BACK TO THE FILE OF AO FOR FRESH ADJUDICATIO N AFTER GIVING A FAIR OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2019 SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED: 31-10-2019 TNMM ITA NO. 341/HYD/2019 :- 4 -: COPY TO : 1. K.CHANDRAKALA, C/O. P.MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2. INCOME TAX OFFICER, WARD-15(3), HYDERABAD. 3. CIT(APPEALS)-7, HYDERABAD. 4. PR.CIT-7, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.