ITO, Hyderabad V. Smt. G Surya Satya Kumari, Hyderabad

ITA 429/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3329 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 19-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMLAN TRIPATHY
• Assessee Lawyers: K A SAI PRASAD
• Section: 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.429/HYD/10 (ASSESSMENT YE AR 2006-07) INCOME-TAX OFFICER, WARD-4(2), HYDERABAD V/S. SMT. G.SURYA SATYA KUMARI, HYDERABAD. ( PAN AJFPG 5579 E ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMLAN TRIPATHY RESPONDENT BY : SHRI K.A.SAI PRASAD O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEA R 2006-07 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE CIT(A) ERRED IN HOLDING THAT THE ASSESSEE WAS CORRECT IN CLAIMING BOTH THE DEDUCTIONS U/S. 54EC &54F IGNORIN G THE FACT THAT NO PART OF NET CONSIDERATION WAS UTILIZED IN PURCHA SE OF RESIDENTIAL HOUSE OR IN CONSTRUCTION OF RESIDENTIAL HOUSE BEFOR E THE DATE OF FILING OF RETURN OF INCOME U/S. 139. 2. THE CIT(A) ERRED IN OVERLOOKING THE FACT THAT PARA 1 OF SEC.54EC STATES THAT WHOLE OR PART OF A CAPITAL GAIN SHALL H AVE TO BE TREATED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION B UT CANNOT BE CARRIED OVER TO OTHER SECTIONS. 3. THE CIT(A) ERRED IN IGNORING THAT CIRCULAR NO.229 D ATED 09.08.1977 RELIED UPON BY THE ASSESSEE IS NOT RELEVANT AS THE SECTIONS 54EC AND 54F WAS INCORPORATION MUCH LATER I.E. SECTION 5 4F INCORPORATED IN 1982 AND SECTION 54EC INCORPORATED IN 2001. 4. THE CIT(A) ERRED IN OVERLOOKING THE FACT THAT AS A RESULT OF NET CONSIDERATION BEING DISTURBED/RUPTURED BY ALIENATIN G MAJOR PART (I.E. 3/5 TH ) IN INVESTMENT BONDS, THE NEXUS REQUIRED BETWEEN T HE ITA NO.429./HYD/10 SMT. G.SURYA SATYA KUMARI, HYDERABAD. 2 NET CONSIDERATION AND UTILIZATION FOR PURCHASE OR C ONSTRUCTION OF NEW ASSET BEFORE THE DATE OF FURNISHING THE RETURN OF INCOME U/S. 139 HAS NOT BEEN ESTABLISHED. 5. THE CIT(A) ERRED IN NOT UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE CLAIM U/S. 54F EVEN WHIL E ALLOWING THE CLAIM FOR EXEMPTION U/S. 54EC. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RE LIED ON THE ORDER OF THE ASSESSING OFFICER. LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS CLAIMED EXEMPTION/DEDUCTION U NDER TWO PROVISIONS OF THE ACT, I.E. S.54EC AND S.54F , WHICH IS PERFECTL Y VALID IN ACCORDANCE WITH THE SCHEME OF THE ACT AND ALSO IN ACCORDANCE WITH THE CIRCULAR NO.229 DATED 9.8.1977 ISSUED BY THE BOARD. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND H AVE PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND THAT THE ASSESSEE HAS CORRECTLY CLAIMED DEDUCTIONS UNDER TWO PROVISIONS OF THE ACT, VIZ. S.54EC AND S.54F OF THE ACT SIMULTANEOUSLY. WE FIND THAT T HERE IS NO PROVISION IN THE ACT TO STOP THE ASSESSEE FROM CLAIMING EXEMPTION/DE DUCTION UNDER TWO SEPARATE PROVISIONS OF THE ACT SIMULTANEOUSLY. THER E BEING NO MISTAKE IN THE ORDER OF THE CIT(A), WHICH IS A SPEAKING ORDER, WHE REIN THE CIRCULAR OF THE BOARD RELIED UPON BY THE LEARNED CO UNSEL FOR THE ASSESSEE HAS ALSO BEEN REFERRED, WE CONFIRM THE ORDER OF THE CIT (A) AND THE GROUNDS OF APPEAL OF THE REVENUE ARE REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE COURT ON 13.5.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 13 TH MAY, 2011. ITA NO.429./HYD/10 SMT. G.SURYA SATYA KUMARI, HYDERABAD. 3 COPY FORWARDED TO: 1. SMT. G.SURYA SATYA KUMARI, 1 - 9 - 312/A/8, DAYANAND NAGAR, VIDYANAGAR, HYDERABAD 2. INCOME TAX OFFICER, WARD 4(2), HYDERABAD . 3. COMMISSIONER OF INCOME - TAX(APPEALS) - V , HYDERABAD I 4. COMMISSIONER OF INCOME-TAX-IV, HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S