Raj Laxmi Maram , Hyderabad V. Income Tax Officer, Ward-7(3) , Hyderabad

ITA 425/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0757 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 31-07-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BALA KRISHNA
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER IT A NO. 425 /H/20 20 ASSESSMENT YEAR: 20 10 - 11 RAJ LAXMI MARAM , HYDERABAD. P AN BUGPM 5012B VS. INCOME - TAX OFFICER, WARD 7(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI K.A. SAI PRASAD REVENUE BY: SHRI BALA KRISHNA DATE OF HEARING: 0 4 /0 2 /2021 DATE OF PRONOUNCEMENT: 17 / 0 2 /2021 O R D E R T H IS ASSESSEE S APPEAL FOR AY 20 10 - 11 IS DIRECTED AGAINST THE C I T(A) - 3 , HYDERABAD S ORDER DATED 0 6 / 0 3 / 20 20 PASSED IN CASE NO. 10132/2019 - 20/A3/ CIT(A) 3 I NVOLVING PROCEEDINGS U/S 1 4 3(3) RWS 147 OF THE INCOME TAX ACT , 1961 ; IN SHORT THE ACT. H EARD BOTH THE PARTIES. CASE F ILE PERUSED. I TA NO. 425 /HYD/ 2020 RAJ LAXMI MARAM, HYD. : - 2 - : 2. I NOTICE AT THE OUTSET THAT ASSESSEE S INSTANT APPEAL SUFFERS FROM 87 DAYS DELAY IN FILING. THE A SSESSEE FILED AN AFFIDAVIT A VERRING THEREIN THAT DUE TO OUTBREAK OF PANDEMIC COVID - 19 SHE COULD NOT MEET HER TAX CONSULTANT AFTER RECEIPT OF THE FIRST APPELLATE AUTHORITYS ORDER WHICH CAUSED THE IMPUGNED DELAY IN FILING OF THE INSTANT APPEAL. CASE LAW COLLECTOR LAND ACQUISITION VS MST. KATIJI & ORS, 1987 AIR 1353 (SC) AND UNIVERSITY OF DELHI VS. UNION OF INDIA, CIVIL APPEAL NO. 9488 & 9489/2019 DATED 17 DECEMBER, 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. I ACCORDINGLY HOLD THAT ASSESSEES IMPUGNED DELAY OF 87 DAYS IS NEITHER INTENTIONAL NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND H IS CONTROL. CASE IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. 3. IT TRANSPIRES DURING THE COURSE OF HEARING THAT THE SOLE SUBSTANTIVE ISSUE BETWEEN PARTIES IS THAT ACQUISITION OF TWIN CAPITAL(S) ASSET TRANSFERRED IN THE RELEVANT PREVIOUS YEAR FOR WHICH T HE ASSESSEE HAD ADOPTED A SUM OF RS. 5 LAKHS AS ON 01/04/1981. THERE IS NO DISPUTE THAT THESE I TA NO. 425 /HYD/ 2020 RAJ LAXMI MARAM, HYD. : - 3 - : ASSETS ARE LOCATED IN MAHARANI GUNJ AREA OF HYDERABAD CITY. THE REVENUES CASE ON THE OTHER HAND IS THAT THE ASSESSING OFFICER WENT BY SRO RATE (BY REVERSE INDEX ATION) TO TREAT THE COST OF ACQUISITION OF TWIN PROPERTIES AT RS. 46,000/ - AND RS. 63,000/ - ; RESPECTIVELY , THEREBY REJECTING THE DIFFERENCE AMOUNT. 3.1 I NOTICE DURING THE COURSE OF HEARING THAT NEITHER THE ASSESSEE HAS B EEN ABLE TO SUPPORT HER VALUATION OF RS. 5 LAKHS AS ON 01/04/1981 BY FILING OF THE NECESSARY COMPARABLE CASES NOR THE REVENUE HAS ANY OTHER MATERIAL EXCEPT TO ADOPT REVERSE INDEXATION. THERE CAN HARDLY BE ANY ISSUE REGARDING THIS VALUATION ISSUE WHEREIN TH E COST OF ACQUISITION / MARKET PRICE OF REAL ESTATE/RESIDENTIAL AND COMMERCIAL PROPERTIES HAVE SEEN MANY ROUNDS OF BOOMS AND CRASHES SINCE 01/04/1984 ONWARDS. . BE THAT AS IT MAY, I DEEM IT PROPER IN THESE FACTS TO APPLY LUMPSUM COST OF ACQUISITION OF RS. 3 LAKHS OF ASSESSEES TWIN ASSETS AS ON 01/04/1981 WOULD BE JUST AND PROPER IN VIEW OF HONBLE MADRAS HIGH COURTS DECISION IN CIT VS. J. CHELLADURAI IN TAX APPEALS NO. 407 & 408/2005 DATED 13/12/2011 WITH A I TA NO. 425 /HYD/ 2020 RAJ LAXMI MARAM, HYD. : - 4 - : RIDER THAT THE SAME SHALL NOT BE TAKEN AS A PREC EDENT IN ANY OTHER CASE OR ANY OTHER ASSESSMENT YEARS; AS THE CASE MAY BE. 4 . THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS . PRONOUNCED IN THE OPEN COURT ON 17 TH FEBRUARY , 2021 . SD/ - ( S.S. GODARA ) JUDICIAL MEMBER HYDE RABAD, DATED : 17 TH FEBRUARY , 20 2 1 . K V C OPY TO : 1 SMT. RAJ LAXMI MARAM, C/O KATRAPATI & ASSOCIATES, 1 - 1 - 298/2/B/3, 1 ST FLOOR, ASHOK NAGAR, HYDERABAD 500 020 2 IT O , WARD 7 ( 3 ), SIGNATURE TOWERS, HYDERABAD 500 084 3 C I T(A) 3 , HYDERABAD. 4 PR. CIT 3 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.