Chevella Reddy Jayaram Chevella , Ranga Reddy V. Income Tax Officer, Ward-1, Vikarabad

ITA 720/Hyd/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8453 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P.MURALI MOHANA RAO
• Keywords: Capital asset; Capital Gains
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B” : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. No.720/HYD/2019 Assessment Year: 2009-10 Chevella Reddy Jayaram Chevella, R.R.Dist. [PAN: AJBPR2265G] Vs ITO, Ward-1, Vikarabad (Appellant) (Respondent) For Assessee : Shri P.Murali Mohana Rao, AR For Revenue : Shri Rohit Mujumdar, DR Date of Hearing : 02-09-2021 Date of Pronouncement : 16-11-2021 O R D E R PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2009-10 arises from the CIT(A)-1, Hyderabad’s order dated 25-02-2019 passed in case No.0497 / 2016-17 / ITO-1, Vikarabad / CIT(A)-1 / Hyd / 2018-19, involving proceedings u/s.144 r.w.s.147 of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused. 2. We come to the former legal issue of correctness of the impugned re-opening. There is hardly any dispute that the Assessing Officer herein issued his Section 148 notice ITA No. 720/Hyd/2019 :- 2 -: dt.29-03-2016 after forming reasons to believe that the assessee’s taxable income; in the nature of capital gains arising from the transfer of capital asset in issue to the tune of Rs.209 crores, had escaped assessment. He thereafter framed the impugned re-assessment dt.29-12-2016 assessing 1/4 th of the said capital gains of Rs.2.09 crores coming to Rs.52,42,750/- as taxable in this taxpayer’s hands as upheld in the CIT(A)’s order. 3. We have given our thoughtful consideration to rival pleadings against and in support of the correctness of the impugned Section 148/147 mechanism taken recourse to by the learned lower authorities. It emerges during the course of hearing that the learned lower authorities have themselves assessed assessee’s father viz. Shri Ch.Venkat Reddy on the same date. And also that the quantum of income in the assessee’s father’s hands as capital gains reads very figure of Rs.2,09,71,000/- out of which department has also assessed 1/4 th share (supra) in this taxpayer’s case. All these facts and circumstances sufficiently indicate that no taxable income assessable in assessee’s hands had escaped assessment once the department had itself taxed the assessee’s father qua the entire sum of very sale consideration. We therefore quote case law DHFL Venture Capital Fund Vs. ITO 34 taxmann.com 300 (Bom) that recourse to Section 148 mechanism would not be formed only to ensure the Revenue’s interest rather than recording a finding of fact that a taxable income had in fact escaped assessment. We accordingly hold that the impugned re-opening in assessee’s case is not sustainable. The same ITA No. 720/Hyd/2019 :- 3 -: stands quashed therefore. All other pleadings on merits are rendered academic. 4. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 16 th November, 2021 Sd/- Sd/- (LAXMI PRASAD SAHU) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 16-11-2021 TNMM ITA No. 720/Hyd/2019 :- 4 -: Copy to : 1.Sri Chevella Reddy Jayaram Chevella, C/o. P.Murali & Co., Chartered Accountants, 6-3-655/2/3, 1 st Floor, Somajiguda, Hyderabad. 2.The ITO, Ward-1, Vikarabad. 3.CIT(Appeals)-1, Hyderabad. 4.Pr.CIT-2, Hyderabad. 5.D.R. ITAT, Hyderabad. 6.Guard File.