K.Poorna Chandra Rao, Visakhapatnam V. THE ITO, Ward - 4(1), Visakhapatnam

ITA 682/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2056 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 21-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Section: 143(3)

Judgement Text

ITA NO.682/VIZAG/2013 K. POORNA CHANDRA RAO, VSKP 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.682/VIZAG/2013 ( / ASSESSMENT YEAR: 2009-10) K. POORNA CHANDRA RAO VISAKHAPATNAM VS. ITO WARD - 4(1) VISAKHAPATNAM [PAN: ACOPK 0677M ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI G.V.N. HARI, AR / RESPONDENT BY : SHRI M.K. SETHI, DR / DATE OF HEARING : 19.02.2016 / DATE OF PRONOUNCEMENT : 02.03.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF CIT(A), VISAKHAPATNAM DATED 12.9.2013 FOR THE ASSES SMENT YEAR 2009- 10. ITA NO.682/VIZAG/2013 K. POORNA CHANDRA RAO, VSKP 2 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS A TRANSP ORTER ENGAGED IN THE BUSINESS OF HIRING LORRIES HAS FILED HIS RETURN OF INCOME ADMITTING TOTAL INCOME OF RS.2,94,000/-. THE RETURN FILED BY THE A SSESSEE WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (H EREINAFTER CALLED AS THE ACT). SUBSEQUENTLY, THE ASSESSMENT WAS COMPL ETED U/S 143(3) OF THE ACT AFTER FOLLOWING THE DUE PROCESS. DURING TH E COURSE OF THE ASSESSMENT PROCEEDINGS, THE AO HAS NOTED THAT THE A SSESSEE HAS RECEIVED RS.19 LAKHS AND WHEN THE AO HAS ASKED THE SOURCE OF INCOME, IT WAS SUBMITTED BEFORE THE AO THAT HE HAS ALREADY SOLD THE AGRICULTURAL LAND AND THE SALE CONSIDERATION RECEIVED IS DEPOSIT ED IN THE BANK ACCOUNT. BEFORE THE A.O., THE ASSESSEE HAS PRODUCE D THE PURCHASER OF THE LAND MR. CHITANENI SESHAGIRI RAO CONFIRMED THE PAYMENTS MADE TO THE ASSESSEE. HOWEVER, WHEN THE AO HAS ASKED THE A SSESSEE THAT WHETHER THE LAND IN QUESTION IS TRANSFERRED TO THE PURCHASER OR NOT? IT WAS SUBMITTED THAT THE LAND WAS ALREADY TRANSFERRED IN THE NAME OF PURCHASER THROUGH AN UNREGISTERED AGREEMENT DATED 2 1.6.2008. HOWEVER, THE A.O. HAS NOT BELIEVED THE TRANSACTION AND HE HAS NOTED THAT THE PURCHASER OF THE LAND DOES NOT HAVE SUFFIC IENT MEANS TO PAY THE HUGE AMOUNT OF RS.19 LAKHS AND HE HAS NO BANK ACCOU NT, NO RETURN OF INCOME AND THE ENTIRE TRANSACTION IS BOGUS TRANSACT ION. ACCORDINGLY, ITA NO.682/VIZAG/2013 K. POORNA CHANDRA RAO, VSKP 3 ADDITION WAS MADE. ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A). THE LD. CIT(A) CONFIRMED THE ORDER OF THE AO. 3. ON BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS SOLD THE LAND TO PURCHASER ONE MR. CHI TANENI SESHAGIRI RAO THROUGH AN AGREEMENT DATED 21.6.2008 AND POSSESSION WAS HANDED OVER TO THE PURCHASER AND THEREFORE, CONTENDED THAT SIMPLY BECAUSE THE DOCUMENT IS NOT REGISTERED, IT CANNOT BE SAID THAT THERE IS NO TRANSFER. 4. ON THE OTHER HAND, THE LD. D.R. HAS STRONGLY SUP PORTED THE ORDER PASSED BY THE AUTHORITIES BELOW AND SUBMITTED THAT THE ENTIRE TRANSACTION IS BOGUS. 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE CASE OF THE ASSESSEE IS THAT HE HAS SOLD THE AGRICU LTURAL LAND THROUGH AN AGREEMENT DATED 21.6.2008 TO MR. C. SESHAGIRI RAO A ND HE HAS RECEIVED THE SALE CONSIDERATION THROUGH DIFFERENT DATES AND DEPOSITED THE SAME IN THE BANK ACCOUNT AND HE HAS ALSO GIVEN POSSESSION T O THE PURCHASER. IT IS NEITHER CLEAR FROM THE ASSESSMENT ORDER NOR FROM CIT(A)S ORDER THAT SUBSEQUENT TO THE AGREEMENT OF SALE, WHETHER THIS P ROPERTY WAS REGISTERED OR NOT AND WHETHER MUTATION TOOK PLACE O R NOT IN THE REVENUE RECORDS. THUS, ABOVE FACTORS ARE MATERIAL TO DECID E WHETHER THE ITA NO.682/VIZAG/2013 K. POORNA CHANDRA RAO, VSKP 4 PROPERTY HAS BEEN TRANSFERRED BY THE ASSESSEE TO TH E PURCHASER OR NOT. UNDER THESE CIRCUMSTANCES, WE SET ASIDE THE ORDER P ASSED BY THE CIT(A) AND WE DIRECT THE AO TO EXAMINE THAT SUBSEQUENT TO THE AGREEMENT, WHETHER ANY REGISTRATION AND ANY MUTATION WERE TOOK PLACE IN THE REVENUE RECORDS AND PATTADAR PASS BOOK HAS BEEN ISS UED TO PURCHASER AND AFTER EXAMINATION OF ALL THE DETAILS, THE AO IS DIRECTED TO DECIDE THE ISSUE DE-NOVO IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 2 ND MAR16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 02.03.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT SHRI K. POORNA CHANDRA RAO, D.NO .45-2-43/9, AKKAYYAPALEM, VISAKHAPATNAM 2. / THE RESPONDENT THE ITO WARD-4(1), VISAKHAPATNA M 3. ) / THE CIT-2, VISAKHAPATNAM 4. ) ( ) / THE CIT(A), VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY //