I. Seshagiri Rao, Sec'bad, Hyderabad V. ITO, Ward-10(4), Hyd, Hyderabad

ITA 466/HYD/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1400 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 27-02-2020
• Assessment Year: 2003-2004
• Appeal Filed On: 31-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R S ARVINDAKSHAN
• Assessee Lawyers: H SRINIVASULU
• Keywords: Additional evidence; Set aside; Capital Gains
• Section: 54F; 133A; 234B; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B-SMC BENCH : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 466/HYD./2016 ASSESSMENT YEAR: 2003-04 SHRI I. SESHAGIRI RAO VS. ITO, WARD 10(4) PROP. RAMAKRISHNA ENGG. CO., HYDERABAD C/O SRI S.RAMA RAO ADVOCATE FLAT NO. 102, SHRIYAS ELEGANCE 3-6-643, STREET NO.9 HIMAYATNAGAR HYDERABAD 500 029 PAN: AAJPI0008H (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI H.SRINIVASULU, A.R. FOR REVENUE : SH. R.S. ARVINDAKSHAN, D.R. DATE OF HEARING : 27/02/2020 DATE OF PRONOUNCEM ENT : 19/05/2020 O R D E R THIS IS ASSESSEES APPEAL FOR A.Y. 2003-04 AGAIN ST THE ORDER OF LD.CIT(A)- 9, HYDERABAD DATED 08.01.2016. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL AND A DEALER IN SUBMERSIBLE PUMP SETS AND GI PIPES, FILED HIS RETUR N OF INCOME FOR A.Y. 2003-04 ON 30.09.2003 ADMITTING TOTAL INCOME AT RS.98,740/- BEING INCOME FROM BUSINESS. THE ASSESSEE ALSO WORKED OUT NIL INCO ME FROM LONG TERM CAPITAL GAINS ON SALE OF SHARES BY CLAIMING THAT THE CAPITA L GAIN HAS BEEN SPENT FOR ACQUISITION OF A RESIDENTIAL HOUSE AND THE BALANCE WHICH HAS NOT BEEN SO UTILIZED WAS DEPOSITED IN THE BANK ACCOUNT. THEREFORE HE CL AIMED THE ENTIRE CAPITAL GAIN ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 2 TO BE EXEMPT FROM TAX U/S.54 OF THE ACT. MEANWHILE , THERE WAS A SURVEY ACTION U/S 133A OF THE INCOME TAX ACT, 1961 (THE ACT) ON 09.09.2004, DURING THE COURSE OF WHICH, TWO DOCUMENTS RELATING TO THE CLAIM OF CA PITAL GAIN WERE FOUND. THE DOCUMENTS WERE : (I) COPY OF SALE DEED DATED 07. 04.2003 FOR PURCHASE OF TERRACE RIGHTS OF AN AREA OF 4000 SQ.FT. OF VINITA MANSION ON PLOT NO.5 SURVEY NO.70 & 71, SITUATED AT BOOSEREDDYGUDA, WEST MAREDPALLY, SECUND ERABAD, FOR RS.7,00,000/- FROM SRI S.YADAIAH. (II) RECEIPT DATED 7.5.2003 GIV EN BY SRI S.YADIAH FOR HAVING RECEIVED FROM THE ASSESSEE RS.2,50,000/- THROUGH DD NO.734973 AND CASH OF RS.50,000/- TOWARDS FULL AND FINAL SETTLEMENT OF TE RRACE RIGHTS AS DISCUSSED IN THE DOCUMENT. 2.1 . A STATEMENT OF THE ASSESSEE WAS ALSO RECORDED DUR ING THE COURSE OF SURVEY, IN WHICH, ASSESSEE SUBMITTED THAT HE HELD 7000 SHAR ES OF M/S.ASRANI-INNS AND RESORTS AND THE SAME WERE DISPOSED OF IN 2002 FROM WHICH THE ASSESSEE GAINED SOME CAPITAL GAIN. WHEN ASKED WHETHER ASSESSEE HAS PAID TAX ON SUCH CAPITAL GAINS, THE ASSESSEE REPLIED THAT HE HAS INVESTED P ART OF THE CAPITAL GAIN IN ACQUIRING A PENT HOUSE HAVING 4000 SQ.FT. AT VINILA APARTMENTS, WEST MAREDPALLY, SECUNDERABAD FOR RS.7 LAKHS, PART OF WH ICH WAS PAID IN CASH AND PART OF IT THROUGH DD FROM HIS ACCOUNT NO.1007 IN I NDIAN BANK IN 2002 AND THAT THE DD WAS GIVEN TO MR.K.YADIAH, BUILDER OF THE APA RTMENT. ASSESSEE SUBMITTED THAT HE HAS CONSTRUCTED THE WALLS, PLASTERING, SLAB , PIPE FITTING, ELECTRIFICATION, FLOORING ETC. AND THE WORK WAS CARRIED ON FROM END OF 2002 TILL END OF 2003 AND THAT HE HAD SPENT A SUM OF RS.65 LAKHS FOR THESE PU RPOSES. THE ASSESSEE ALSO SUBMITTED THAT HE HAS THE BILLS, BUT THEY WERE MISP LACED. WHEN ASKED ABOUT CREDIT OF THE SALE CONSIDERATION, THE ASSESSEE SUBM ITTED THAT HE HAD DEPOSITED THE SAME IN SINDH URBAN CO-OPERATIVE BANK LTD. P.G. ROAD BRANCH, IN S.B.A/C NO.1824. WHEN THE ASSESSEE WAS ASKED TO EXPLAIN TH E INVESTMENT IN RESIDENTIAL HOUSE, THE ASSESSEE, VIDE LETTER DATED 24.09.2004, STATED THAT AN AMOUNT OF RS.35,41,967/- WAS SPENT ON CONSTRUCTION OF THE PEN T HOUSE ON VINILA MANSION AND THIS WAS IN ADDITION TO THE BASIC COST OF RS.7 LAKHS PAID TO THE BUILDER. THE ASSESSEE ALSO FURNISHED THE DETAILS OF THE TOTAL SA LE CONSIDERATION OF RS.98 LAKHS ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 3 RECEIVED ON SALE OF SHARES AND WITH REGARD ITS UTIL IZATION, THE ASSESSEE FURNISHED THE FOLLOWING DETAILS: 1. COST OF TERRACE AREA OF 400 SQ.FT. RS. 7,00,000/ - 2. COST OF CONSTRUCTION OF PENT HOUSE ON THE ABOVE TERRACE UPTO 31.3.2003 : RS.35,42,000 AMOUNT SPENT O OR AFTER 1.4.2003 : RS.10,00,000 RS. 45,42,000 3. AMOUNT GIVEN TO HIS SON SRI I.KRISHNA PRASAD RS. 26,33,000 4. AMOUNT GIVEN TO SHRI A.SAINATH GOUD TOWARDS ADVANCE FOR DEVELOPMENT OF KAVADIGUDA PROPERTY RS. 8,00,000 5. HAND LOANS GIVEN RS. 8,95,000 6. MISC. EXPENSES RS. 2,30,000 ============= RS. 98,00,000/- THE A.O. THEREFORE HELD THAT SINCE THERE IS TRANSFE R OF SHARES DURING THE RELEVANT PREVIOUS YEAR, THE CAPITAL GAIN HAS TO BE BROUGHT T O TAX IN THE RELEVANT A.Y. AND HE ACCORDINGLY ARRIVED AT CAPITAL GAIN OF RS.78,56, 520/- AND ALLOWED DEDUCTION U/S 54F TO THE EXTENT OF RS.23,35,440/- I.E. THE PR OPORTIONATE INVESTMENT MADE UPTO THE DUE DATE OF FILING THE RETURN OF INCOME AN D ARRIVED AT THE TAXABLE CAPITAL GAIN OF RS.59,84,230/-. 2.2. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL TO THE CIT(A) AND ALSO FILED ADDITIONAL EVIDENCES CONTENDING THAT THERE WAS NO T RANSFER OF SHARES DURING THE F.Y. 2002-03 RELEVANT TO THE A.Y.2003-04 AND THEREF ORE NO CAPITAL GAIN HAS ARISEN WHICH IS TAXABLE THIS YEAR. THE CIT(A), HOWEVER, DI SMISSED ASSESSEES APPEAL, AGAINST WHICH ASSESSEE FILED AN APPEAL BEFORE THE TRIBUNAL. THE B BENCH OF THE ITAT IN ITA NO.731/HYD/2005, VIDE ORDER DATED 11.0 9.2009, SET ASIDE THE ADDITION ON ACCOUNT OF CAPITAL GAIN AND RESTORED TH E MATTER TO THE FILE OF AO FOR FRESH ADJUDICATION WITH A DIRECTION TO CONSIDER ASS ESSEES ADDITIONAL EVIDENCE AND WHETHER THERE WAS TRANSFER OF SHARES DURING THE P.Y. 2002-03 RELEVANT TO A.Y. 2003-04. ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 4 2.3. THE AO THEREFORE INITIATED ASSESSMENT PROCEEDINGS BY ISSUANCE OF NOTICE U/S 143(2) OF THE ACT ON 23.11.2009. THE ASSESSEE HAD STATED THAT THE SHARES WERE NOT REGISTERED IN FAVOUR OF THE TRANSFEREE DUR ING THE PY 2002-03 AND THAT THE TRANSFER OF PROPERTY HELD BY ASRANI INNS AND RE SORTS WAS SUBJECT TO LITIGATION AND THE SAME WAS SETTLED IN 2004 AND THEREFORE NEIT HER THE IMMOVABLE PROPERTY NOR THE SHARES WERE TRANSFERRED DURING THE RELEVANT PY 2002-03. IT WAS ALSO SUBMITTED THAT THE ASSESSEE HAS SPENT RS.42,42,000/ - UPTO 31.3.2003 BUT THE AO ALLOWED RELIEF U/S 54F PROPORTIONATELY TO THE EX TENT OF RS.23,35,440/- ONLY. THE AO TOOK INTO CONSIDERATION, THE RELEASE DEED EX ECUTED BY THE ASSESSEE AND 9 OTHERS IN FAVOUR OF M/S ASRANI INNS AND RESORTS P VT.LTD. WHEREIN THE RELEASORS UNDERTOOK TO RELEASE ALL THE RIGHTS, TITLE, INTERES T ETC. IN THE PROPERTY SITUATED AT 4-1-898, BOGGULKUNTA, HYDERABAD IN FAVOUR OF THE T RANSFEREE I.E. M/S ASRANI INNS AND RESORTS PVT.LTD. THE AO ALSO CONSIDERED TH E AFFIDAVIT FILED BY THE DIRECTOR OF M/S JM ENTERTAINMENT PVT. LTD. WHO DESC RIBED HIMSELF AS THE DIRECTOR OF M/S ASRANI INNS & RESORTS P LTD. FILED BEFORE THE HONBLE HIGH COURT OF AP PRAYING FOR RELEASE OF THE RELEASE DEED. AO A LSO CONSIDERED THE WRIT PETITION NOS.576, 577 AND 578 FILED BY M/S ASRANI INNS & RES ORTS P LTD. AND COMMON ORDER OF HONBLE HIGH COURT OF AP DISMISSING THE WR IT PETITIONS AND MOU EXECUTED ON 20.11.2002 BETWEEN ASSESSEE AND 11 OTHE RS AND M/S JM ENTERTAINMENT PVT. LTD. 2.4. AFTER CONSIDERING ALL THE DOCUMENTS, THE AO HELD TH AT THE ASSESSEE INDIVIDUAL AND OTHERS HELD THE INVESTMENT IN IMMOVA BLE PROPERTY BELONGING TO M/S ASRANI INNS AND RESORTS PVT.LTD. BY WAY OF SHAR ES AND SINCE THE RIGHTS IN SHARES WERE RELEASED BY WAY OF RELEASE DEED AND SUP PLEMENTARY MOU DATED 20.12.2002 AND ASSESSEE AND OTHERS HAVE RECEIVED TH E SALE CONSIDERATION WHICH HAS BEEN DEPOSITED BY THE ASSESSEE INTO HIS BANK AC COUNT, THERE IS A TRANSFER DURING THE PY 2002-03 ITSELF. THE AO ALSO OBSERVED THAT THE ASSESSEE HIMSELF HAS DECLARED THE LONG TERM CAPITAL GAIN IN HIS RETU RN OF INCOME AND HAD CLAIMED EXEMPTION U/S 54F OF THE ACT. THEREFORE AO HELD TH AT THERE IS A TRANSFER DURING THE RELEVANT PY AND CAPITAL GAIN ARISING THEREFROM IS LIABLE TO TAX DURING THE ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 5 RELEVANT AY. WITH REGARD TO CLAIM OF EXEMPTION U/S .54F OF THE ACT, THE AO HELD THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION TO THE EXTENT OF RS.34,00,750/- AND THE BALANCE OF CAPITAL GAIN OF RS.44,55,770/- WAS B ROUGHT TO TAX. 3. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHO CONFIRMED THE ORDER OF AO. 4. ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL B Y RAISING THE FOLLOWING GROUNDS OF APPEAL. 1) THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS BOTH O N FACTS AND IN LAW. 2) THE LD.CIT(A) ERRED IN HOLDING THAT THE TRANSFER OF SHARES WAS EFFECTED DURING THE PY RELEVANT FOR AY 2003-04 AND FURTHER E RRED IN CONFIRMING THE ACTION OF THE AO IN TREATING THE CAPITAL GAIN AS AR ISING FOR AY 2003-04. 3) THE LD.CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THA T THE SUBJECT MATTER OF TRANSFER IS LAND AND THAT NO SUCH TRANSFER TOOK PLA CE. 4) WITHOUT PREJUDICE TO THE ABOVE, THE LD.CIT(A) ERRE D IN CONFIRMING THE ACTION OF AO IN ARRIVING AT THE DEDUCTION U/S 54F AT RS.34 ,00,750/- WITHOUT ALLOWING DEDUCTION AS CLAIMED. 5) THE LD.CIT(A) ERRED IN CONFIRMING THE ACTION OF AO IN LEVYING INTEREST U/S 234B AND 234C OF THE I.T.ACT. 6) ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF H EARING. 5. THE LD.COUNSEL FOR ASSESSEE REITERATED THE SUBMISSI ONS MADE BEFORE THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE N OT ONLY HELD 7000 SHARES IN M/S ASRANI INNS & RESORTS P LTD, BUT THE IMMOVABLE PROPERTY AT BOGGULKUNTA WAS ALSO REGISTERED IN HIS NAME AND OTHER CO-OWNERS . BEFORE THE TRIBUNAL, HE FILED COPIES OF THE ENCUMBRANCE CERTIFICATES DATED 15.12.2020 AND 27.02.2020 TO DEMONSTRATE THAT THE PROPERTY STILL STOOD IN THE NAME OF THE ASSESSEE AND THE OTHER CO-OWNERS. THEREFORE, ACCORDING TO HIM, THERE IS NO TRANSFER OF PROPERTY ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 6 DURING THE RELEVANT AY AND HENCE THE CAPITAL GAIN H AS NOT ARISEN DURING THE RELEVANT AY. 5.1. WITH REGARD TO THE CLAIM OF EXEMPTION, THE LD.COUNS EL FOR ASSESSEE HAS FILED ADDITIONAL EVIDENCE STATING THAT THE AMOUNT I NVESTED IN THE PURCHASE/CONSTRUCTION OF A HOUSE TILL THE DATE OF F ILING OF THE RETURN OF INCOME HAS TO BE ALLOWED AS A DEDUCTION AND AS PER SEC.54F THE AMOUNT CAN BE INVESTED IN CONSTRUCTION OF A HOUSE WITHIN A PERIOD OF 3 YEA RS FROM THE DATE OF TRANSFER OF ORIGINAL ASSET AND THE UNINVESTED CAPITAL GAIN IF A NY CAN BE BROUGHT TO TAX ONLY AFTER THE EXPIRY OF THREE YEARS. IN SUPPORT OF TH IS CONTENTION, HE PLACED RELIANCE ON THE FOLLOWING CASE LAWS. I. SH.K.RAMACHANDRA RAO (ITA NO.47/2014 & ITA 46/2014) KARNATAKA H.C. II. SH. VIJAY MAHIPAL (ITA 502/KOL/2017 AY 2013-14) ITA T KOLKATA III. SH. SADARMAL KOTHARI AND ANOTHER (2008) 302 ITR 286 (MAD)MRS. SEETHA SUBRAMANIAM (1996) 59 ITD 94 ITAT (MAD) IV. SMT.SELVI VENKATSUBRAMANI (ITA 1052/BANG/2013) ITAT BANGALORE V. CBDT CIRCULAR NO.672 OF 16/12/93 VI. INCOME TAX CIRCULAR 471 OF 15/10/1986 5.2. LD.DR, ON THE OTHER HAND, RELIED UPON ORDERS OF TH E AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE HAD ENTERED INTO A RELE ASE DEED AND ALSO A SUPPLEMENTARY RELEASE DEED BY WHICH ASSESSEE HAS RE LEASED HIS RIGHTS IN THE PROPERTY AND HAS ALSO RECEIVED THE ENTIRE SALE CONS IDERATION. HE SUBMITTED THAT THERE IS NO LITIGATION WITH REGARD TO TRANSFER OF S HARES OR THE PROPERTY, BUT THE LITIGATION WAS BETWEEN THE PURCHASER AND THE REGIST RATION AUTHORITIES. HE ALSO DREW OUR ATTENTION TO THE FACT THAT THE ASSESSEE HA S RECEIVED ENTIRE SALE CONSIDERATION AND IN HIS RETURN OF INCOME, ASSESSEE HAS DECLARED THE CAPITAL GAIN AND HAS CLAIMED EXEMPTION U/S 54F OF THE ACT. THE REFORE, ACCORDING TO HIM, THE AO AND THE CIT(A) HAVE RIGHTLY DECIDED THAT THE RE WAS TRANSFER OF SHARES ON WHICH CAPITAL GAIN HAS ARISEN DURING THE RELEVANT A Y. HE THUS PRAYED FOR DISMISSAL OF THE APPEAL. AS REGARDS ADDITIONAL EVI DENCES, HE SUBMITTED THAT THE ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 7 SAME MAY BE REFERRED TO AO FOR VERIFICATION, IF THE TRIBUNAL WAS CONVINCED THAT THE CAPITAL GAIN INVESTED UPTO THE DATE OF FILING O F RETURN IS TO BE ALLOWED. 6. HAVING REGARD TO RIVAL CONTENTIONS AND MATERIAL PLA CED ON RECORD, I FIND THAT THE ASSESSEE AND OTHERS HAVE ENTERED INTO RELE ASE DEED DATED DECEMBER,2002, WHEREIN IT IS STATED THAT THE PRIVAT E COMPANY M/S ASRANI INNS & RESORTS P LTD. HAD PURCHASED A PROPERTY AT BOGGUL KUNTA AND THE ENTIRE SALE CONSIDERATION WAS PAID BY THE COMPANY AND THAT THE NAMES OF OTHER PURCHASERS WERE INCLUDED AND SHOWN AS PURCHASERS IN THE SALE DEED MERELY FOR THE SAKE OF CONVENIENCE AND THAT NONE OF THE PURCHASERS HAVE AN Y BENEFICIARY RIGHTS, TITLE/INTEREST THEREIN. THE ASSESSEE AND THE OTHER PERSONS SHOWN AS OWNERS OF THE PROPERTY IN THE SALE DEED HAVE SIGNED THIS RELE ASE DEED AND THEREFORE, THERE IS NO DISPUTE ON THE OWNERSHIP OF THE PROPERTY LYIN G SOLELY WITH THE COMPANY. FURTHER, IN THE AFFIDAVITS FILED BEFORE HONBLE HIG H COURT OF AP THE DIRECTOR OF THE COMPANY HAS MENTIONED THE RELEASE DEED THEREIN AND THE DISPUTE WAS WITH THE GOVERNMENT OF A.P. AND THE DIRECTOR OF STAMPS AND REGISTRATION AND NOT AMONGST THE ASSESSEE AND OTHERS. FURTHER, ASSESSEE HIMSELF HAS DECLARED THE CAPITAL GAIN IN HIS RETURN OF INCOME AND HAS CLAIME D EXEMPTION U/S 54F OF THE ACT. THEREFORE, IRRESPECTIVE OF THE DATE WHEN THE R ELEASE DEED HAS BEEN REGISTERED, THERE IS A TRANSFER OF SHARES DURING THE PY 2002-03 AS FAR AS ASSESSEE IS CONCERNED. THEREFORE, I DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE AO AND CIT(A) HOLDING THAT THE TRANSFER HAS TAKEN P LACE DURING THE PY 2002-03 RELEVANT TO AY 2003-04. GROUNDS 2 AND 3 ARE THUS R EJECTED. AS REGARDS EXEMPTION FROM LONG TERM CAPITAL GAIN U/ S.54F OF THE ACT, THE DECISIONS RELIED UPON BY LD.COUNSEL FOR THE ASSESSE E ARE FOR THE PROPOSITION THAT FOR CONSTRUCTION OF A HOUSE, THE ASSESSEE HAS GOT A PERIOD OF 3 YEARS AND THE CAPITAL GAIN TO THE EXTENT WHICH IS NOT INVESTED CA N BE BROUGHT TO TAX ONLY ON THE LAPSE OF 3 YEARS. I FIND THAT THE PROVISO TO SECTI ON 54F OF THE ACT READS AS UNDER: ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 8 SECTION 54F. . PROVIDED THAT IF THE AMOUNT DEPOSITED UNDER THIS SU B-SECTION IS NOT UTILISED WHOLLY OR PARTLY FOR THE PURCHASE OR CONSTRUCTION OF THE NEW ASSET WITHIN TH E PERIOD SPECIFIED IN SUB-SECTION (1), THEN, (I) THE AMOUNT BY WHICH (A) THE AMOUNT OF CAPITAL GAIN ARISING FROM THE TR ANSFER OF THE ORIGINAL ASSET NOT CHARGED UNDER SECTION 45 ON THE BASIS OF THE COST OF THE NE W ASSET AS PROVIDED IN CLAUSE (A) OR, AS THE CASE MAY BE, CLAUSE (B) OF SUB-SECTION (1), EXCEEDS (B) THE AMOUNT THAT WOULD NOT HAVE BEEN SO CHARGED HAD THE AMOUNT ACTUALLY UTILISED BY THE ASSESSEE FOR THE PURCHASE OR CONSTRUCTION OF TH E NEW ASSET WITHIN THE PERIOD SPECIFIED IN SUB-SECTION (1) BEEN THE COST OF THE N EW ASSET, SHALL BE CHARGED UNDER SECTION 45 AS INCOME OF THE PREVIOUS YEAR IN WHICH THE PERIOD OF THREE YEARS FROM THE DATE OF THE TRANSFER OF THE ORIGINAL ASSET EXPIRES; AND (II) THE ASSESSEE SHALL BE ENTITLED TO WITHDRAW TH E UNUTILISED AMOUNT IN ACCORDANCE WITH THE SCHEME AFORESAID. THUS, THESE DECISIONS ARE APPLICABLE TO THE CASE ON HAND. FURTHER, IN THE CASE BEFORE US, ASSESSEE HAS CLAIMED THAT HE HAD INVESTE D UPTO RS.45,42,000/- BEFORE FILING OF THE RETURN OF INCOME. THE ASSESSEE HAS FI LED DETAILS OF SUCH EXPENDITURE BEFORE THE TRIBUNAL BY WAY OF ADDITIONAL EVIDENCE. I THEREFORE DEEM IT FIT AND PROPER TO ADMIT SUCH ADDITIONAL EVIDENCE AND REMAND IT TO THE FILE OF AO FOR VERIFICATION OF THE SAME. AFTER VERIFICATION, THE AO SHALL RECOMPUTE THE ELIGIBLE EXEMPTION U/S.54F OF THE ACT AND THE UN-UTILIZED CA PITAL GAIN SHALL BE BROUGHT TO TAX AS PROVIDED UNDER THE PROVISO TO SECTION 54F OF THE ACT. 7. IN THE RESULT, GROUND NOS. 2 AND 3 ARE REJECTED, G ROUND NO.4 IS PARTLY ALLOWED AND GROUND NO.5 IS CONSEQUENTIAL IN NATURE. THE AO IS THEREFORE DIRECTED TO ALLOW CONSEQUENTIAL RELIEF TO ASSESSEE. 8 . IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN OPEN COURT ON 19 TH MAY, 2020. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER DATED: 19 TH MAY, 2020. *GMV ITA NO.466/HYD/2016 AY 2003-04 SHRI I. SESHAGIRI RAO 9 COPY FORWARDED TO: 1. SHRI I. SESHAGIRI RAO, C/O. SHRI S. RAMA RAO, ADVOC ATE, FLAT NO.102, SHRIYAS ELEGANCE 3-6-643, STREET NO.9 HIMAYATNAGAR , HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-10(4), HYDERABAD. 3. CIT(A)-9, HYDERABAD. 4. PR.CIT-7, HYDERABAD. 5. D.R. ITAT HYDERABAD. 6. GUARD FILE