SHRI RAM LAL NARWANI, Jaipur V. INCOME TAX OFFICER, Jaipur

ITA 343/JPR/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4693 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 12-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJENDER SINGH DHK
• Keywords: Reopening of assessment; Competent authority; Reason to believe
• Section: 143(3); 147; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JESK LH-'KEKZ] YS[KK LNL; DS LE{K BEFORE : SHRI RAMESH C.SHARMA, ACCOUNTA NT MEMBER VK;DJ VIHY LA-@ ITA NO. 343/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 SHRI RAM LAL NARWANI 10/763-764, MALVIYA NAGAR, JAIPUR CUKE VS. THE ITO WARD- 5 (4), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ACFPN 2911G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY :MISS. SHIVANGI SAMDHANI, CA JKTLO DH VKSJ LS@ REVENUE BY: SHRI RAJENDER SINGH, ADDL. CIT-DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 31/07/2019 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 31/07/2019 VKNS'K@ ORDER PER RAMESH C. SHARMA, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-2, JAIPUR DATED 08-12-2017 FOR THE ASSESSM ENT YEAR 2009-10, IN THE MATTER OF ORDER PASSED U/S 147 READ WITH SECTIO N 143(3) OF THE I.T. ACT, 1961. 2.1 IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR V ALIDITY OF REOPENING OF ASSESSMENT AND ALSO FOR MERIT OF THE ADDITION UNDER THE HEAD OF CAPITAL GAINS WITHOUT CONSIDERING THE IMPROVEMENT COST INC URRED BY THE ASSESSEE. ITA NO.343/JP/2018 SHRI RAM LAL NARWANI VS ITO, WARD- 5(4) , JAIPUR 2 2.2 THE RIVAL CONTENTIONS HAVE BEEN HEARD AND RECOR DS PERUSED. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS AN INDIVIDU AL AND FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WELL WITHIN TIME. SUBSEQUENTLY, THE CASE WAS REOPENED BY ISSUE OF NOTICE U/S 148 OF THE ACT ON THE PLEA THAT THE ASSESSEE HAS NOT DECLARED CAPITAL GAIN ON SALE OF HOUSE PROPERTY. IT WAS PLEADED BY THE LD.AR OF THE ASSESSEE THAT REOPE NING WAS NOT JUSTIFIED, IN SO FAR AS, THERE WAS NO REASON TO BELIEVE THAT T HERE WAS ESCAPEMENT OF INCOME. FURTHER MORE, THE LD.AR CONTENDED THAT NO APPROVAL WAS TAKEN FOR REOPENING THE ASSESSMENT. FROM THE RECORD, I FO UND THAT ON EARLIER OCCASION THE DEPARTMENT WAS DIRECTED BY THE BENCH T O FILE THE APPROVAL SO OBTAINED FOR REOPENING THE ASSESSMENT BUT THE SA ME WAS NOT FILED BEFORE THE BENCH. DURING THE COURSE OF HEARING, THE LD. DR SUPPORTED THE ORDER OF THE LD. CIT(A). 2.3 FROM THE RECORD IN RESPECT OF ADDITION UNDER TH E HEAD OF CAPITAL GAINS, I FIND THAT IN THE CASE OF REASSESSMENT PROC EEDINGS, THE AO HAS COMPUTED THE SHORT TERM CAPITAL GAIN OF RS.10, 29,5 50/- AS AGAINST SHORT TERM CAPITAL LOSS COMPUTED BY THE ASSESSEE AT RS. 2 9,950/-. IT WAS CONTENDED THAT COST OF IMPROVEMENT WAS NOT ALLOWED TO THE ASSESSEE. IN SUPPORT OF THE SAME, THE ASSESSEE HAS FILED THE COP Y OF UNDERTAKING RECEIVED FROM THE CONTRACTOR SHRI NAWAL KISHORE THE KEDAR FROM WHOM REPAIR AND RENOVATION WORK WAS EXECUTED ALONGWITH E XTRACT OF BANK ITA NO.343/JP/2018 SHRI RAM LAL NARWANI VS ITO, WARD- 5(4) , JAIPUR 3 STATEMENT ESTABLISHING THE SOURCE OF SUCH INVESTMEN TS. IT APPEARS THAT THESE DOCUMENTS WERE NOT FILED BEFORE THE LOWER AUT HORITIES AT THE TIME OF ORIGINAL ASSESSMENT. THE BENCH FINDS THAT THESE DOC UMENTS GOES TO THE ROOT OF THE ISSUE FOR THE DECIDING NET CAPITAL GAIN S ASSESSEE HAS EARNED. THEREFORE, IN ALL FAIRNESS OF THE CASE, I RESTORE T HE MATTER BACK TO THE FILE OF THE AO FOR CONSIDERING THE ADDITIONAL DOCUMENTS SO PLACED ON RECORD FOR DECIDING THE ISSUE AFRESH. I DIRECT THE AO TO SHOW AND FURNISH THE COPY OF APPROVAL TO THE ASSESSEE FOR REOPENING THE ASSESSMENT SO OBTAINED FROM COMPETENT AUTHORITY BEFORE DECIDING THE ISSUE. I DIRECT ACCORDINGLY. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 /07/20 19. SD/- JESK LH 'KEKZ (RAMESH C. SHARMA) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 31/07/ 2019 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI RAM LAL NARWANI, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 5(4), JAIPUR 3. VK;DJ VK;QDRVIHY ) @ CIT(A), 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.343/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR