Mohammed Waheeduddin, Hyderabad V. Income Tax Officer, Ward-7(1), Hyderabad

ITA 984/Hyd/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3606 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 04-11-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 16-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Capital Gains
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 984/HYD/18 2008-09 MOHAMMED WAHEEDUDDIN, HYDERABAD [PAN: BFKPM4934F] INCOME TAX OFFICER, WARD-7(1), HYDERABAD 1457/HYD/18 FOR ASSESSEE : SHRI P.C.YADAV, AR FOR REVENUE : SHRI ANIL SANT, DR DATE OF HEARING : 04-11-2019 DATE OF PRONOUNCEMENT : 11-11-2019 O R D E R BOTH ARE ASSESSEES APPEALS FOR THE AY.2008-09 AGAINS T THE ASSESSMENT COMPLETED U/S.144 R.W.S. 147 AND PENALT Y LEVIED U/S.271(1)(C) OF THE INCOME TAX ACT [ACT] RESPE CTIVELY. 2. BRIEF FACTS OF THE CASE ARE THAT, THE ASSESSING OFFIC ER (AO) RECEIVED AN INFORMATION THAT THE ASSESSEE ALONG WITH 19 OTHERS SOLD A PROPERTY (TOTALLY ADMEASURING 1271 SQ. YRDS) K NOWN AS FAREED MANSION SITUATED AT RED HILLS, HYDERABAD FO R A CONSIDERATION OF RS.60 LAKHS AS AGAINST THE MARKET VALU E OF RS.2,23,91,000/-. THE AO WAS THEREFORE OF THE OPINION THAT THE FULL VALUE OF THE CONSIDERATION SHOULD BE TAKEN AT RS.2,23,91,000/- AND THE ASSESSEE HAS TO OFFER CAPITAL GAINS ON SUCH SALE OF THE PROPERTY TO THE EXTENT OF HIS SHARE. AS THE ASSESSEE HAD NOT FILED ANY RETURN OF INCOME OFFERING THE CAPITAL ITA NOS. 984/HYD/2018 1457/HYD/2018 :- 2 -: GAINS TO TAX ON THE SAID TRANSACTION, ASSESSMENT WAS RE-OPENED BY ISSUANCE OF A NOTICE U/S.148 OF THE ACT DT.30-03-2015. SINCE THE ADDRESSEE HAD LEFT THE PREMISE S WITH THE ADDRESS GIVEN IN THE SALE DEED, THE NOTICE COULD NO T BE SERVED AND THEREFORE, THE SAME WAS SERVED BY AFFIXTUR E. NONE APPEARED FOR THE ASSESSEE AND THEREFORE, THE AO PROCEE DED TO CONSIDER THE MARKET VALUE OF THE PROPERTY AS THE SALE CONSIDERATION AND AFTER TAKING THE ASSESSEES SHARE OF PROPERTY, ARRIVED AT THE LONG TERM CAPITAL GAIN BY TREATING THE COS T OF ACQUISITION AT NIL. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFOR E THE CIT(A) IN MANUAL FORM. THE LD.CIT(A) DISMISSED THE A PPEAL OF ASSESSEE BY HOLDING THAT THE APPEAL HAS TO BE E-FILED. AGAINST THE SAME, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L. SIMILARLY AFTER THE ASSESSMENT, THE AO HAD INITIATED AND LEVIED PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT, AGAINST WHICH THE ASSESSEE FILED THIS APPEAL ALSO MANUALLY BEFORE THE C IT(A). ON THE GROUND THAT THE APPEALS HAVE TO BE FILED ELECTRONIC ALLY, CIT(A) DISMISSED BOTH THE APPEALS. AGAINST THE SAID ORD ERS OF CIT(A), ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. HAVING REGARD TO THE FACT THAT FILING OF APPEALS ELECTRONICALLY HAS BECOME MANDATORY DURING THE RELEVAN T PERIOD ONLY, AND SINCE THE APPEALS FILED MANUALLY AR E WITHIN TIME, I AM INCLINED TO SET ASIDE THE ORDER OF LD.CIT(A) AND DIRECT THE ASSESSEE TO FILE BOTH THE APPEALS ELECTRONICA LLY WITHIN A PERIOD OF ONE MONTH FROM THE DATE OF RECEIPT OF THIS O RDER AND ITA NOS. 984/HYD/2018 1457/HYD/2018 :- 3 -: AFTER THAT, CIT(A) SHALL CONSIDER THE APPEALS ON MERIT S OF THE ISSUES INVOLVED THEREIN. 5. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE ARE TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH NOVEMBER, 2019 SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED: 11-11-2019 TNMM ITA NOS. 984/HYD/2018 1457/HYD/2018 :- 4 -: COPY TO : 1. MOHAMMED WAHEEUDDIN, C/O.M.M.FIRDOS, ADVOCATE, 11-3-942, 1 ST FLOOR, NEW MALLEPALLY, HYDERABAD. 2. INCOME TAX OFFICER, WARD-7(1), HYDERABAD. 3. CIT(APPEALS)-3, HYDERABAD. 4. PR.CIT-3, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.