M R RAJAKUMAR REDDY, CHENNAI V. DCIT, CORP CIR-3(2), CHENNAI

ITA 3417/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1821 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 14-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , ! ' # , % #& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.3417/CHNY/2018 ) *) / ASSESSMENT YEAR : 2012-13 SHRI M.R. RAJAKUMAR REDDY, NEW NO.7, OLD NO.4, FIRST CROSS STREET, SEETHAMMAL COLONY EXTN., TEYNAMPET, CHENNAI - 600 018. PAN : AAEPR 7326 J V. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(2), CHENNAI. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE ./,- 0 1 / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT 2 0 3% / DATE OF HEARING : 24.10.2019 45* 0 3% / DATE OF PRONOUNCEMENT : 04.12.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -11, CHENNAI, DATED 16.10.2018 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS ASSE SSMENT OF 35,175/- BEING THE INTEREST ON REFUND. 2 I.T.A. NO.3417/CHNY/18 3. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , VERY FAIRLY SUBMITTED THAT HE WAS INSTRUCTED BY THE ASSESSEE NO T TO PRESS THIS GROUND OF THE APPEAL. THE LD.COUNSEL HAS ALSO MADE AN ENDORSEMENT TO THAT EFFECT IN THE APPEAL FOLDER. THE LD. DEPARTME NTAL REPRESENTATIVE SHRI AR.V. SREENIVASAN HAS NO OBJECTION TO DISMISS THIS GROUND AS NOT PRESSED. IN VIEW OF THE ABOVE, THE GROUND RELATING TO INTEREST ON REFUND IS DISMISSED AS NOT PRESSED. 4. THE NEXT GROUND ARISES FOR CONSIDERATION IS WITH REGARD TO COST OF CONSTRUCTION FOR COMPUTATION OF LONG TERM CAPITAL G AINS / LOSS. 5. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE A SSESSEE ON THE GROUND THAT THE RETURN WAS NOT FILED WITHIN THE DUE DATE. ACCORDING TO THE LD. COUNSEL, THE COST OF CONSTRUCTION TO THE EXTENT OF 1,35,96,462/- CREDITED TO THE M/S AGIRA HOTELS INDIA PVT. LTD. THE ASSESS ING OFFICER DISBELIEVED THE CREDIT ENTRY ONLY ON THE GROUND THAT THE ASSESS EE IS ALSO ONE OF THE SHAREHOLDERS IN M/S AGIRA HOTELS INDIA PVT. LTD. A CCORDING TO THE LD. COUNSEL, THE EXPENDITURE INCURRED BY THE ASSESSEE W AS CREDITED BY M/S AGIRA HOTELS INDIA PVT. LTD., THEREFORE, THE COST O F CONSTRUCTION BEING ONE OF THE COMPONENTS FOR COMPUTATION OF LONG TERM CAPI TAL GAINS HAS TO BE TAKEN INTO CONSIDERATION. MOREOVER, ACCORDING TO T HE LD. COUNSEL, THE CIT(APPEALS) ENHANCED THE ASSESSMENT WITHOUT GIVING ANY PROPER OPPORTUNITY TO THE ASSESSEE. THE LD.COUNSEL SUBMI TTED THAT THE BILLS AND 3 I.T.A. NO.3417/CHNY/18 VOUCHERS ARE AVAILABLE FOR THE PAYMENTS MADE FROM 3 1.03.2008 TO 31.03.2010, HENCE, THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. 6. WE HEARD SHRI AR.V. SREENIVASAN, THE LD. D.R. AL SO. ADMITTEDLY , THE ASSESSEE IS A SHAREHOLDER IN M/S AGIRA HOTELS INDIA PVT. LTD. THE ASSESSEE WAS HAVING CONTROLLING INTEREST IN M/S AGI RA HOTELS INDIA PVT. LTD. THEREFORE, THE ASSESSING OFFICER HAS DOUBTED THE GENUINENESS OF THE CREDIT IN THE ABSENCE OF AGREEMENT, BILL AND VO UCHER, ETC. THE CIT(APPEALS) ALSO FOUND THAT BILL, VOUCHER, ETC. WA S NOT AVAILABLE AND IT WAS NOT PRODUCED EITHER BEFORE THE ASSESSING OFFICE R OR BEFORE THE CIT(APPEALS). THE ASSESSEE NOW CLAIMS THAT VOUCHER S ARE AVAILABLE AND THE PAYMENTS WERE MADE FROM 31.03.2008 TO 31.03.201 0, THEREFORE, THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSE SSING OFFICER FOR VERIFICATION. THIS TRIBUNAL IS OF THE CONSIDERED O PINION THAT WHEN THE ASSESSEE CLAIMS THAT BILLS AND VOUCHERS ARE AVAILAB LE FOR THE PAYMENTS MADE BETWEEN 31.03.2008 AND 31.03.2010, THE MATTER NEEDS TO BE RE- EXAMINED. ACCORDINGLY, ORDERS OF BOTH THE AUTHORIT IES BELOW ARE SET ASIDE AND THE ISSUE WITH REGARD TO COST OF CONSTRUCTION F OR COMPUTATION OF CAPITAL GAIN IS REMITTED BACK TO THE FILE OF THE AS SESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER ON TH E BASIS OF THE MATERIAL THAT MAY BE FILED BY THE ASSESSEE AND THEREAFTER DE CIDE THE ISSUE AFRESH 4 I.T.A. NO.3417/CHNY/18 IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE O PPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 4 TH DECEMBER, 2019 AT CHENNAI. SD/- SD/- ( ! ' # ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 4 TH DECEMBER, 2019. KRI. 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-11, CHENNAI 4. PRINCIPAL CIT- 3, CHENNAI 5. 9< .3 /DR 6. =) > /GF.