Chinta Padmaja , Hyderabad V. Income Tax Officer, (International Taxation), Hyderabad

ITA 5/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4373 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-02-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 02-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retrospective amendment; Capital Gains
• Section: 143(3); 54F; 201; 139(1); 139(4); 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 5 /HYD./2019 ASSESSMENT YEAR : 201 4 - 15 CHINTA PADMAJA . VS. ITO (INTERNATIONAL TAXATION) - 1 HYDERABAD HYDERABAD [PAN: A GTPC 5555B ] I.T.A. NO. 253/HYD./2019 ASSESSMENT YEAR : 201 3 - 14 SRI M.A. SAMI KHAN VS. ITO , WARD 14(1) HYDERABAD HYDERABAD [PAN: BGTPK3094C ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: NONE (FOR ITA 5/HYD/19) PREETAM YADAV FOR SHRI PC YADAV, ADV (IN ITA 253/HYD/19) FOR REVENUE: SHRI ROHIT MUZUMDAR, CIT D.R. DATE OF HEARING : 15 /02/2021 DATE OF PRONOUNCEMENT : 07 /05/2021 O R D E R PER S.S. GODARA, J.M. THESE TWO ASSESSEES APPEALS FOR AY 2013 - 14 AND 2014 - 15 ARISE FROM CIT(A) - 6 AND CIT(A) - 10 HYDERABADS ORDERS DATED 15.10.2015 AND 11 . 09.2018 IN CASE NOS. 0183/2016 - 17 AND 10250 /2017 - 18 INVOLVING PROCEEDINGS U/S 143(3) AND 143(3) RWS 147 OF THE ACT; RESPECTIVELY. 2. IT TRANSPIRES DU RING THE COURSE OF HEARING THAT BOTH FORMER ASSESSEES SOLE SUBSTANTIVE GRIEVANCE IN ITA 5/HYD/2019 AND LATTER ASSESSEES FOURTH SUBSTANTIVE GRIEVANCE IN APPEAL ITA 253/HYD/19 CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING U/ S 54F DEDUCTION CLAIM OF RS. 92,25,256/ - AND RS. 61,21,200/ - ; RESPECTIVELY FOR THE IDENTICAL PRECISE REASON THAT THEY HAD NOT REINVESTED THE CORRESPONDING CAPITAL GAINS WITHIN THE PERIOD PRESCRIBED U/S 139 (1) BUT BEFORE FILING OF RETURN U/S 139 (4) OF THE ACT ONLY. 3. MR.MUJUMDAR FAILS TO DISPUTE THAT IN LATTER APPEAL THAT THE ASSESSING OFFICERS D ETAILED DISCUSSION IN PARA 3 . 2 HAS CONSIDERED ALL THE PAYMENT INSTANCES FROM 15.01.2013 TO 21.9.2013 TO CONCLUDE THAT ONLY THE FORMER EIGHT OF THEM INVOLVING A SUM OF RS.99,86,000/ - DESERVE TO BE ACCEPTED. THE FACTUAL POSITION IS NO DIFFERENT IN FORMER ASSESSEES CASE AS WELL. WE NOTICE IN THIS FACTUAL BACK DROP THAT SHE WAS DEPENDING UPON M/S KEERTHI ESTATES PVT.LTD. ONLY FOR COMPLETION OF THE HOUSE I.E. NON C OMPLETION THEREOF WAS ON ACCOUNT OF CIRCUMSTANCES BEYOND HER CONTROL. CASE LAW (2015) 379 I TR 534 (KERALA) XAVIER J PULLICHAL VS DCIT & SUNAYANA DEVI VS. ITO, 86 TAXMANN.COM HELD THAT THE IMPUGNED RELIEF OF SEC.54F DEDUCTION OUGHT NOT TO BE DENIED SINCE A R ELIEF U/S 139(4) IS ALSO TO BE READ WITH THAT U/S 139(1) OF THE ACT ONLY. WE THUS DIRECT THE CORRESPONDING ASSESSING AUTHORITIES TO TREAT BOTH THESE ASSESSEES AS ELIGIBLE FOR SEC.54F DEDUCTION (S) IN ABOVE TERMS . FORMER ASSESSES APPEAL ITA 5/H YD / 1 9 RAISING THIS SO LE SUBSTANTIVE GRIEVANCE IS ACCEPTED THEREFORE. 4. WE STAY BACK TO LATTER ASSESSEES APPEAL ITA 253/H/19 QUA OTHER REMAINING ISSUES . HIS F IRST SUBSTANTIVE GRIEVANCE SEEKS TO REVERSE BOTH THE LEARNED LOWER AUTHORITIES ACTION INVOKING SEC.50 C OF TH E ACT ON ACCOUNT OF THE SALE PRICE OF RS.1 , 68 , 30 , 000 / - AS AGAINST ACTUAL CONSIDERATION OF RS.1 , 56 , 00 , 000 / - RESULTING IN THE IMPUGNED CAPITAL GAIN ADDITION OF RS. 12,30,000/ - . LD.DR FAILS TO DISPUTE THAT ALTHOUGH THE FINANCE ACT, 2020 HAS INSERTED 3 RD PROVISO SUCH ENHANCED TOLERANCE MARGIN FROM 5% EXISTING EARLIER TO 10% WEF 1.4.2021, THIS T RIBUNALS C OORDINATE BENCH S DECISION IN ITA 4850/ MUM /19 MARIA C VS. ITO DATED 14.1 .2021 HOLDS THE SAME TO BE A CURATIVE ONE HAVING RETROSPECTIVE EFFECT. WE THUS FOLLOW THE VERY REASONING MUTATIS MUTANDIS TO DELETE THE IMPUGNED ADDITION KEEPING IN MIND THE DIFFERENCE BETWEEN THE TWO CONSIDERATIONS TO BE LESS THAN 10%. THE ASSESSEES FORMER THREE SUBSTANTIVE GROUNDS IN IT A 253 /H/ 2019 ARE ALLOWED THEREFORE. NO OTHER GROUND HAS BEEN PRESSED BEFORE US. THESE TWO ASSESSEEES APPEALS ARE ALLOWED IN ABOVE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THEIR RESPECTIVE CASE FILES. PRONOUNCED IN OPEN COURT ON 07 TH MAY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: TH E 07 TH MAY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. (I) MS. CHINTA PADMAJA, H.NO.2 - 2 - 647/274, A PLOT NO.24, SRINIVASA NAGAR COLONY, BAGH AMBERPET, HYDERABAD 500 013 (II) SRI M.A. SAMI KHAN, 8 - 2 - 293/82A/1125, PLOT NO.1125, ROAD NO. 36, JUBILEE HILLS , HYDERABAD. 2. (I) ITO, INTERNATIONAL TAXATION - 1, HYDERABAD (II) ITO, WARD 14(1), HYDERABAD . 3 . CIT (A) - 10, HYD. (II) CIT(IT&TP),HYD. (III) CCIT (IT)(SZ), BENGALURU 4 . ITO, WARD 14(1), HYDERABAD. (II) ACIT, RANGE 14, HYDERABAD 5. CIT - 6, HYDERABAD. 6. PR.CIT - 6, HYDERABAD 7.D R, ITAT, HYDERABAD. 8 . GUARD FILE.