Smt. Anita Saran John , Bangalore V. Deputy Commissioner of Income Tax Circle-4(3)(1), Bangalore

ITA 463/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4796 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 07-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH R GHALE TO D EPT
• Assessee Lawyers: PRATIBHA
• Keywords: Opportunity of being heard; Set aside
• Section: 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, C BENCH : BANGALORE BEFORE SHRI B.R BASKARAN , ACCOUNTANT MEMBER ITA NO.463/BANG/2019 ASSESSMENT YEAR : 2012-13 SMT. ANITA SARAN JOHN, 23/24, HADOSIDAPURA, CARMELARAM POST, VARTHUR HOBLI. BENGALURU-560 035. PAN ACUPJ 1037 A VS. THE DY. COMMISSIONER OF INCOME-TAX, , CIRCLE-4(3)(1), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SMT. PRATIBHA, ADVOCATE RESPONDENT BY : SHRI GANESH R GHALE, ADVOCATE STANDING COUNSEL TO D EPT. DATE OF HEARING : 07.11.2019 DATE OF PRONOUNCEMENT : 08.11.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 18/1/2019 PASSED BY LD CIT(A)-12, BENGALURU A ND IT RELATES TO ASST. YEAR 2012-13. 2. THE ISSUE URGED IN THIS APPEAL RELATES TO DENIAL OF EXEMPTION U/S 54 CLAIMED BY THE ASSESSEE. 3. DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE SOLD A PROPERTY FOR 1.45 CRORES AND COMPUTED CAPITAL GAIN OF RS.1.07 CORES. IN THE RETURN OF INCOME, THE ASSESSEE CLAIMED EXEMP TION U/S 54 OF ITA NO.463 /BANG/2019 PAGE 2 OF 4 THE ACT TO THE TUNE OF RS.56.87 LAKHS. DURING THE COURSE OF ASST. PROCEEDINGS THE AO ASKED THE ASSESSEE TO PROVE SUPP ORTING DOCUMENTS AND EVIDENCES TO SUBSTANTIATE THE CLAIM M ADE U/S 54 OF THE ACT. THE ASSESSEE FURNISHED DETAILS REGARDING PURCHASE OF A SITE FOR RS.16,17,095/-. THE ASSESSEE HAD CLAIMED COST OF IMPROVEMENT OF RS.40.70 LAKHS, BUT COULD PRODUCE PART OF DETAIL S. HENCE THE ASSESSEE, VIDE HER LETTER DATED 4/2/2015, FILED A R EVISED THE COMPUTATION BY REDUCING THE CLAIM U/S 54 OF THE ACT TO RS.13.64 LAKHS. ACCORDINGLY, THE AO MADE ADDITION OF RS.27. 05 LAKHS. 4. IN THE APPELLATE PROCEEDINGS, THE LD CIT(A) PROC EEDED TO ADJUDICATE THE ISSUE RELATING TO DEPOSIT MADE BY TH E ASSESSEE IN THE CAPITAL GAIN ACCOUNT SCHEME. 5. I HEARD THE PARTIES AND PERUSED THE RECORD. I N OTICED THAT THE AO HAS NOT DISCUSSED ANYTHING ABOUT THE DEPOSITS M ADE IN THE CAPITAL GAIN ACCOUNT SCHEME IN THE ASSESSMENT ORDE R. HENCE, I AM NOT ABLE TO UNDERSTAND AS TO WHY THE LD CIT(A) WAS MADE TO ADJUDICATE THE ISSUE RELATING TO DEPOSITS MADE IN C APITAL GAINS ACCOUNT SCHEME. FURTHER, I NOTICE THAT THOUGH THE ASSESSEE HAS CLAIMED EXEMPTION U/S 54 OF THE ACT INITIALLY AT RS .56.87 LAKHS, YET THE CLAIM WAS REDUCED TO RS.13.64 LAKHS DURING THE COURSE OF ASSESSMENT PROCEEDINGS. HOWEVER, THE AO HAS MADE T HE ADDITION OF ONLY 27.05 LAKHS, WHICH DOES NOT CONSTITUTE DIFFERE NCE BETWEEN ORIGINAL CLAIM AND REVISED CLAIM. 6. FOREGOING DISCUSSIONS WOULD SHOW THAT THERE IS N O CLARITY ON THE ISSUE AT ALL AND HENCE I AM OF THE VIEW THAT TH E ISSUE RELATING TO ITA NO.463 /BANG/2019 PAGE 3 OF 4 DEDUCTION CLAIMED U/S 54 OF THE ACT REQUIRES FRESH EXAMINATION AT THE END OF AO. ACCORDINGLY I SET ASIDE THE ORDER P ASSED BY LD CIT(A) AND RESTORE THE SAME TO THE FILE OF THE AO FOR EXAM INING IT AFRESH. AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE THE AO MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH NOVEMBER, 2019. SD/- (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, THE 8TH NOVEMBER, 2019. /VMS/ COPY TO: 1. APPELLANT (S) / CROSS OBJECTOR(S) 2. RESPONDENT(S) 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE ITA NO.463 /BANG/2019 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DICTATION NOTE ENCLOSED DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED