V.Kamalam, CHENNAI V. ITO, Kumbakonam

ITA 890/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6019 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 11-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: N V BALAJI
• Keywords: Unexplained investment; Salary income
• Section: 54F; 144

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC C BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NOS.890/MDS/2017 ( / ASSESSMENT YEAR: 2010-11) MRS. V KAMALAM, NO.14/8, SRIRAM COLONY, NANGANALLUR, CHENNAI 600 061. VS THE INCOME TAX OFFICER, WARD I (2), KUMBAKONAM. PAN: ATSPK0602K ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI N. V. BALAJI, ADVOCATE /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 03.10.2017 ! /DATE OF PRONOUNCEMENT : 05.10.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-2, TIRUCHIRAPPALLI DATED 01.02.2017 IN ITA NO.82/2013- 14/CIT(A- 2)/TRY FOR THE ASSESSMENT YEAR 2010-11 PASSED U/S.2 50(6) R.W.S.144 OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HER APPEAL, HOWEVER THE CRUX OF THE ISSUE ARGUED BEFORE US WAS THAT THE 2 ITA NO.890/MDS/2017 REVENUE HAD DENIED THE BENEFIT OF DEDUCTION U/S.54F OF THE ACT TO THE ASSESSEE EVEN THOUGH SHE WAS ENTITLED FOR TH E SAME AND FURTHER ERRED BY MAKING ADDITION TOWARDS UNEXPLAINE D INVESTMENT OF RS.5,81,200/-. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL EARNING INCOME FROM SALARY, FILED HER RE TURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 ON 16.07.2010 ADMIT TING TOTAL INCOME OF RS.1,75,350/-. INITIALLY THE RETURN WAS P ROCESSED U/S.143(1) OF THE ACT AND SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY AND FINALLY ASSESSMENT ORDER WAS PASSED U/ S. 144 OF THE ACT ON 28.03.2013, WHEREIN THE LD.AO DENIED THE BEN EFIT OF DEDUCTION UNDER SECTION 54F OF THE ACT AND THEREBY COMPUTED THE LONG TERM CAPITAL GAIN OF THE ASSESSEE AT RS.3, 06,058/- AND ALSO MADE ADDITION OF RS.5,81,200/- AS UNEXPLAI NED INVESTMENT. 4. DURING THE SCRUTINY ASSESSMENT PROCEEDINGS, IT W AS OBSERVED BY THE LD.AO THAT THE LAND BELONGING TO TH E ASSESSEE WAS ACQUIRED BY THE GOVERNMENT, WHEREIN SHE RECEIVE D COMPENSATION OF RS.4,20,025/- AFTER DEDUCTING TDS O F 3 ITA NO.890/MDS/2017 RS.42,003/-. THE ASSESSEE HAD EXPLAINED BEFORE THE LD.AO THAT SUBSEQUENTLY SHE HAD PURCHASED A RESIDENTIAL PROPER TY FOR RS.9,00,000/-. SINCE THE ASSESSEE HAD NOT PROVIDED SUFFICIENT MATERIALS TO JUSTIFY HER CLAIM FOR DEDUCTION U/S.54 F OF THE ACT AND FURTHER DID NOT FURNISH DETAILS ABOUT THE SOURCE OF INVESTMENT FOR RS.5,81,200/- IN THE NEWLY ACQUIRED PROPERTY, THE L D.AO DENIED THE BENEFIT OF SECTION 54F OF THE ACT TO THE ASSESS EE AND MADE ADDITION OF RS.5,81,200/- AS UNEXPLAINED INVESTMENT BY PASSING AN EX-PARTE ORDER. 6. THE LD.CIT(A) ALSO CONFIRMED THE ORDER OF THE LD .AO BECAUSE EVEN BEFORE HIM, THE ASSESSEE WAS NOT ABLE TO SUBSTANTIATE HER CLAIM. 7. AT THE OUTSET THE LD.AR SUBMITTED BEFORE US THAT ONE MORE OPPORTUNITY MAY BE PROVIDED TO THE ASSESSEE IN ORDE R TO PRESENT THE CASE BEFORE THE LD.AO, BECAUSE SHE IS IN POSSES SION OF ALL THE DOCUMENTS REQUIRED FOR SUBSTANTIATING HER CLAIM . THE LD.DR STRONGLY OPPOSED TO THE SUBMISSION OF THE LD.AR. 4 ITA NO.890/MDS/2017 8. AFTER HEARING BOTH SIDES, I DO NOT FIND MUCH FOR CE IN THE ARGUMENT ADVANCED BY THE LD.AR. HOWEVER, IN THE IN TEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD.AO FOR DE-NOVA CONSIDERATION THERE BY PROVIDING ONE MORE O PPORTUNITY TO THE ASSESSEE OF BEING HEARD. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 05 TH OCTOBER, 2017 AT CHENNAI. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER '# /CHENNAI, $% /DATED 05 TH OCTOBER, 2017 RSR % '( )( /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. , ( )/CIT(A) 4. , /CIT 5. (-. / /DR 6. .0 /GF