M/s Aurete Resorts & Realtors Pvt Ltd , Bangalore V. Income Tax Officer Ward-1(1)(2), Bangalore

ITA 849/BANG/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6302 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 08-07-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 17-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Keywords: Capital expenditure
• Section: 143(3); 142(1); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA. NO. 849 /BANG/201 7 (ASSESSMENT YEAR: 201 2 - 13 ) M/S. AURETE RESORTS & REALTORS PVT. LTD., NO.142, 18 TH A MAIN, HAL 2 ND STAGE, INDIRANAGAR, BANGALORE - 560 008 PAN AAFCA 4205M VS. INCOME TAX OFFICER , WARD 1(1)(2), BANGALORE. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI BALRAM R RAO,ADVOCATE. REVENUE BY: DR. P. V. PRADEEP KUMAR, ADDL. CIT (D.R) DATE OF HEARING : 08.07 .2019 DATE OF PRONOUNCEMENT : 02.08. 2019 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1 , BANGALORE PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 2 ITA NO.849/BANG/2017 3 ITA NO.849/BANG/2017 4 ITA NO.849/BANG/2017 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY HAD PURCHASED WET LANDS FROM AGRICULTURIST AND FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012 - 13 ON 30.9.2012 WITH NIL INCOME AFTER SETTING OFF OF THE BROUGHT FORWARD LOSSES AND SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) AND 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE T HE LEARNED AUTHORISED REPRESENTATIVE APPEARED FROM TIME TO TIME BEFORE THE ASSESSING OFFICER AND CASE WAS DISCUSSED. WHEREAS THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF CAPITAL EXPENDITURE AND OTHER CLAIM AND DECLINED THE EXEMPTION OF LONG TERM CAPITAL GAINS (LTCG) AND ASSESSED THE TOTAL INCOME OF RS.11,90,13,348 AND PASS ED THE ORDER UNDER SECTION 143(3) OF THE ACT DT.31.3.2015. AGGRIEVED BY THE ORDER, THE ASSESSEE FILED AN APPEAL WITH THE 5 ITA NO.849/BANG/2017 CIT(APPEALS). THE LEARNED AUTHORISED REPRESENTATIVE HAS RAISED VARIOUS GROUNDS OF APPEAL BEFORE THE CIT(APPEALS). ON THE ISSUE OF BU ILDING A FARM HOUSE, THE ASSESSEE SUBMITTED THAT CERTIFICATE WAS OBTAINED BY THE ASSESSING OFFICER FROM THE TAHSILDAR OF THE CONCERNED AREA ON 20.03.2015 AND SAME WAS NOT PROVIDED TO THE ASSESSEE. THE CIT(APPEALS) CONSIDERED THE SUBMISSIONS OF THE ASSES SEE AND PARTLY ALLOWED THE APPEAL . AGGRIEVED BY THE ORDER OF THE CIT(APPEALS) THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORISED REPRESENTATIVE ARGUED THAT THE LEARNED CIT(A PPEALS) HAS ERRED I N UPHOLDING AS NON - AGRICULTURAL LAND S WITHOUT APPRECIATING THAT THE LANDS ARE UTILIZED FOR AGRICULTURE US AGE , AND WERE SOLD AND FURTHER THE CERTIFICATE OF TAHSILDAR WAS USED AGAINST THE ASSESSEE WAS NOT PROVIDED AND ALSO THERE IS NO FINDING OF THE LEARNED CIT (APPEALS) ON THIS DISPUTED ISSUE AND PRAYED FOR ALLOWING THE APPEAL CONTRA THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF LEARNED CIT(APPEALS). 5. WE HEARD THE RIVAL SUBMISSION S AND PERUSED THE MATERIAL ON RECORD. ON THE DISPUTED ISSUE, THE CERTIFICATE WAS ISSUED BY THE TAHSILDAR WHICH IS NOT DISPUTED AND SAME RAISED IN THE GROUND NO.2 BEFORE THE LEARNED CIT (APPEALS) WHICH IS AS UNDER : 6 ITA NO.849/BANG/2017 ON VERIFICATION OF FACT, WE FOUND TH ERE IS NO PROPER FINDING ON THIS DISPUTE ISSUE EXCEPT THE CIT (APPEALS) DISCUSSED AT PARA 5 OF HIS ORDER AS UNDER : 7 ITA NO.849/BANG/2017 T HE ASSESSING OFFICER WITHOUT PROVIDING COPY OF LETTER S TO THE ASSESSEE HAS COMPLETED ASSESSMENT UNDER SECTION 143(3) OF THE ACT DT.31.3.2015. THE ASSESSEE WAS DEPRIVED TO CONTEST ON THE CERTIFICATE OF THASILDAR IN THE ASSESSMENT PROCEEDINGS. HENCE, CONSIDERING THE OVER ALL FACTS AND SUBMISSIONS OF THE ASSESSEE 8 ITA NO.849/BANG/2017 AND FINDINGS OF THE ASSESSING OFFICER, WE ARE OF THE OPINION THAT THE ASSESSEE'S GROUND OF APPEAL NO.2 BEFORE THE CIT(APPEALS) IS NOT ADJUDICATED AND ACCORDINGLY WE RESTORE THIS DISPUTED ISSUE TO THE FILE OF CIT(APPEALS) TO ADJUDICATE AFRESH AND CONSIDER THE SUBMISSIONS OF THE ASSESSEE ON THE TAHSILDAR CERTIFICATE AND FURT HER THE ASSESSEE SHOULD CO - OPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF THE APPEAL AND ALLOW THE GROUNDS OF APPEAL FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE ASSESSEE'S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER P RONOUNCED IN THE OPEN COURT ON 02 - 08 - 2019. SD/ - SD/ - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 02 - 08 - 2019. *REDDY GP COPY TO I) THE APPELLANT II) THE RESPONDENT III) CIT (APPEALS) IV) PR. CIT V) DR, ITAT, BANGALORE VI) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE