INCOME TAX OFFICER 22(1)(4), MUMBAI V. JAIRAM PRITHYANI, MUMBAI

ITA 4818/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6074 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 10-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARKAMAL SOHI SANDHU
• Keywords: Tax effect; Set aside
• Section: 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI N.K. PRADHAN, HONBLE ACCOUNTANT MEMBER ITA NO . 4818 /MUM/201 7 ( A.Y: 2011 - 12) INCOME TAX OFFICER 22 (1)(4) R.NO. 308 PIRAMAL CHAMBERS LALBAUG PAREL MUMBAI 400 012 V. SHRI JAIRAM PRITHYANI GARDEN 1A BUILDING 4 TH FLOOR, FLAT NO. 403 10 TH ROAD, KHAR(W) MUMBAI 400 052 PAN NO: AADPP5599A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI FENIL BHATT DEPARTMENT BY : SHRI HARKAMAL SOHI SANDHU DATE OF HEARING : 20 .09.2019 DATE OF PRONOUNCEMENT : 20 .09.2019 O R D E R PER C.N. PRASAD (JM) THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 34 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] IN APPEAL NO. CIT(A) - 34 / IT O - 19(1)(3)/IT - 124/14 - 15 DATED 12.04. 2017 FOR THE ASSESSMENT YEAR 2011 - 12. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL : - 2 ITA NO. 6203/MUM/2017 (A.Y: 2010 - 11) M/S. UZURI JEWELS PVT. LTD '1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN APPLYING THE PROVISIONS OF SECTION 54F(4) OF THE INCOME - TAX ACT, 1961.' 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN ALLOWING THAT THE EXEMPTION CLAIMED U/S. 54 OF THE INCOME - TAX A CT, 1961, THE INVESTMENT IN THE NEW ASSET AT RS.2,40,00,000 / - , HOLDING THAT THE APPELLANT HAD ACQUIRED SUBSTANTIAL DOMAIN OVER THE NEW PROPERTY BY WAY OF THE LETTER OF ALLOTMENT AND ALSO MADE THE SUBSTANTIAL PAYMENT FOR THE COST OF THE FLAT, DESPITE THE FA CTS THAT THE MERE THE ALLOTMENT LETTER DATED 19.07.2010 ISSUED BY THE DEVELOPER DOES NOT CONFER TITLE UNTIL THE AGREEMENT FOR SALE UNDER THE PROVISION OF MOFA IS REGISTERED, AS PER THE RECENT DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF RASIKLA L M PARIKH VS. ACIT (ITA. 314 OF 2013 DT. 10.03.2017).' 3. 'THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE AO BE RESTORED.' 3. AT THE TIME OF HEARING, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS .46, 19,964 / - WHICH IS BELOW 5 0 LAC S AND IN VIEW OF THE CBDT CIRCULAR N O . 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT) , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE ABOVE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE . 5. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE GROUNDS OF APPEAL IN THIS APPEAL. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .5 0 LAKHS AND T HEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON 3 ITA NO. 6203/MUM/2017 (A.Y: 2010 - 11) M/S. UZURI JEWELS PVT. LTD ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE TH IS APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 20 TH SEPTEMBER, 2019 . S D/ - SD/ - ( N.K. PRADHAN) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 20 / 09/2019 GIRIDHAR, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM