INCOME TAX OFFICER WARD-2(1), AMRAVATI V. SHRI RATANLAL GOPINATHJI KHANDELWAL L/H SMT. SAVITRIDEVI R.KHANDELWAL, AMRAVATI

ITA 448/NAG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3119 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 21-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: K A HIRANI
• Keywords: Sale consideration of property below Jantri Value; Retrospective amendment; Tax effect
• Section: 80C; 50C; 54F

Judgement Text

1 ITA NO. 448/NAG/2014 & CO NO. 12/NAG/2015. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 448NAG/2014 ASSESSMENT YEAR : 2008 - 09. THE INCOME - TAX OFFICER, SHRI RATANLAL GOPINATHJI KHANDELWAL, WARD - 2, AMRAVATI. VS. AMRAVATI. PAN ABPPK3019F APPELLAN T RESPONDENT C.O. NO. 12/NAG/2015 (IN ITA NO. 448/NAG/2014) ASSESSMENT YEAR : 2008 - 09. SHRI RATANLAL GOPINATHJI KHANDELWAL, THE INCOME - TAX OFFICER, AMRAVATI. VS. WARD - 2, AMRAVATI. CROSS OBJECTOR RESPONDENT. DEPARTMENT BY : SHRI NARENDRA KANE. ASSESSEE BY : SHRI K. A. HIRANI. DATE OF HEARING : 0 3 - 02 - 2016 DATE OF PRONOUNCEMENT : 25 TH FEBRUARY, 2016. O R D E R PER MUKUL K. SHRAWAT, J.M. REVENUE IS IN APPEAL AND THE ASSESSEE IS IN CROSS OBJECTION, BOTH ARISING FROM THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 24 - 07 - 2014. GROUNDS RAISED BY THE REVENUE ARE AS UNDER : 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(APPEALS) - II, NAGPUR HAS ERRED IN HOLDING THAT THE ASSESSEE IS ENTITLED TO CLAIM U/S 54F AND THAT A CLAIM NOT MADE IN RETURN OF INCOME, CANNOT BE REJE4CTED BY AO DURING ASSESSMENT PROCEEDINGS. 2 ITA NO. 448/NAG/2014 & CO NO. 12/NAG/2015. 2. WHETHER ON THE FACTS AND CIR CUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(APPEALS) - II, NAGPUR HAS ERRED IN HOLDING THAT THE ASSESSEE IS ENTITLED TO CLAIM U/S 54F, AS THE ASSESSEE HAS BORROWED FUNDS FOR CONSTRUCTION OF NEW RESIDENTIAL PROPERTY FROM THE AKOLA URBAN CO - OP. BANK LTD. , AKOLA. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(APPEALS) - II, NAGPUR HAS ERRED IN COMPUTING THE DEDUCTION U/S 54F. IF AT ALL IT IS ALLOWED, THE DEDUCTION U/S 54F IS TO BE WORKED OUT WITHOUT IMPOSING SEC. 50C INTO IT. 2 . AT THE OUTSET WE HAVE BEEN INFORMED THAT THE TAX EFFECT WAS ONLY RS.8,61,465/ - AS PER THE FOLLOWING CALCULATION: PARTICULARS RETURNED INCOME. ASSESSED INCOME. INCOME FROM PGBP INCOME FROM LONG TERM CAPITAL GAINS INCOME FROM OTHER SOURCES GROSS TOTAL INCOME LESS: DEDUCTION U/S 80C TOTAL INCOME R/OFF TAX ON NORMAL INCOME TAX ON ASSESSED INCOME BEING LTCG ADD: SURCHARGE @ 10% TOTAL ADD: CESS @ 3% TOTAL TAX, SC AND CESS ON ASSESSED INCOME. 193,141 - 4,232 197,373 4,132 193,241 193,240 - - - ------------------ 193,141 3,803,460 4,232 4,000,833 4,132 3,996,701 3,996,700 - 760,340.00 76,034.0 0 836,374.00 25,091.00 -------------------------- 861,465.00 3 . ON THIS ISSUE NOW CBDTS CIRCULAR NO. 21/2015 DATED 10 - 12 - 2015 HAS BEEN BROUGHT TO OUR NOTICE. IN THE SAID CIRCULAR IT HAS BEEN SPECIFIED THAT THE 3 ITA NO. 448/NAG/2014 & CO NO. 12/NAG/2015. CIRCULAR WOULD HAVE RETROSPECTIVE EFFECT AND THE REVENUE WOULD NOT PRESS AND WOULD WITHDRAW SUCH APPEALS. T HERE ARE CERTAIN EXCEPTIONS MENTIONED IN THE SAID CIRCULAR. LEARNED D.R. COULD NOT POINT OUT THAT ANY OF THESE CASES ATTRACT THE EXCEPTIONS PROVIDED IN THE SAID CIRCULAR. IN THESE CIRCUMSTANCES, IN THE LIGHT OF THE ABOVE SAID CBDT CIRCULAR, THIS APPEAL IS DISMISSED ON ACCOUNT OF TAX EFFECT IN LIMINE. 4. IN THE RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. 5 . AS FAR AS THE CROSS OBJECTION OF THE ASSESSEE IS CONCERNED, LEARNED A.R. MR. K.A. HIRANI HAS FILED A LETTER SEEKING PERMISSION TO WITHDRAW T HE CROSS OBJECTION. LEARNED A.R. HAS PLEADED THAT IN A SITUATION WHEN THE REVENUES APPEAL IS TO BE DISMISSED IN LIMINE, HENCE THE CROSS OBJECTION OF THE RESPONDENT ASSESSEE IS MERELY ACADEMIC IN NATURE. CONSIDERING THIS ASPECT, THE CROSS OBJECTION IS HE REBY DISMISSED BEING WITHDRAWN. 6 . IN THE RESULT, REVENUES APPEAL AS WELL AS CROSS OBJECTION OF THE ASSESSEE BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF FEBRUARY, 2016. SD/ - SD/ - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: 25 TH FEBRUARY, 2016. 4 ITA NO. 448/NAG/2014 & CO NO. 12/NAG/2015. COPY FORWARDED TO : 1. SHRI RATANLAL GOPINATHJI KHANDELWAL, L/H SMT. SAVITRIDEVI P. KHANDALWAL, PROP. M/S HOTEL TOURIST, RAILWAY STATION CHOWK, AMRAVATI. 2. I.T.O., WARD - 2, AMRAVATI. 3. COMMISSIONER OF INCOME - TAX - ,NAGPUR. 4. CIT(APPEALS) - II, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER WAKODE. ASSISTANT REGISTRAR, ITAT, NAGPUR