Shri B J Bhaskar Reddy , Bangalore V. Income Tax Officer Ward-5(2)(4), Bangalore

ITA 995/BANG/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6197 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-07-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 02-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: RAVISHANKAR S V
• Keywords: Corroborative evidences; Set aside
• Section: 143(3); 54F; 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. 995 /BANG/2018 (ASSESSMENT YEAR: 201 2 - 13 ) SHRI B J BHASKAR REDDY, NO.802, AARADHANA, 9 TH MAIN, KORAMANGALA 3 RD BLOCK, BENGALURU - 560 034 PAN: ABIPD 8668G VS. INCOME TAX OFFICER , WARD 5(2)(4), BANGALORE. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI RAVI SHANKAR S V, ADVOCATE. REVENUE BY: DR. P. V. PRADEEP KUMAR, ADDL. CIT (D.R) DATE OF HEARING : 03.07 .2019 DATE OF PRONOUNCEMENT : 07 .0 8 .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) - 10 , 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.995/BANG/2018 3 ITA NO.995/BANG/2018 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED RETURN OF INCOME ON 17.04.2013 WITH A TOTAL INCOME OF 4 ITA NO.995/BANG/2018 R S.5,69,020. SUBSEQUENTLY, THE C ASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISS UED. IN COMPLIANCE THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE APPEARED FROM TIME TO TIME BEFORE THE ASSESSING OFFICER AND FILED THE INFORMATION IN RESPECT OF BANK ACCOUNT, ACQUISITION AND PURCHASE OF THE PROPERTY ON 20.10.2014, AND FURTH ER THE REVISED COMPUTATION OF INCO ME WAS FILED DECLARING INCOME FROM SHORT TERM CAPITAL GAINS (STCG) WHEREAS THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO FURNISH INFORMATION ON CONSTRUCTION OF HOUSE PROPERTY ALONG WITH COPY OF CAPITAL GAINACCOUNT. THE ASSESSEE HAS SOLD THE ANCESTRAL PROPERTY ALONG WITH WIFE AND TWO DAUGHTERS FOR A CONSIDERATION OF RS.3,39,00,000, AND THE SAID PROPERTY WAS INHERITED ON DEATH OF HIS FATHER. THE SALE CONSIDERATION OF RS.3.39 CRORES W AS DEPOSITED IN THE CAPITAL GAIN ACC OUNT SCHEME ON 19.12.2011. SUBSEQUENTLY, THE MONEY WAS WITHDRAWN ON 25.4.2012, AND WAS DEPOSITED IN THREE ACCOUNTS OF RS.75 LAKHS EACH AND ONE ACCOUNT OF RS.72 LAKHS. SUBSEQUENTLY, T HE ASSESSEE HAS WITHDRAWN THE SAID AMOUNT ON 8.3.2013 AND PURCHASED PROP ERTY AT KORAMANGALA FOR A CONSIDERATION OF RS.2.15 CRORES. THE CONTENTION OF LD. AR THAT 5 ITA NO.995/BANG/2018 THE ASSESSEE HAS CONSTRUCTED HOUSE PROPERTY OUT OF THE CAPITAL GAINS ACCOUNT AMOUNT WITHIN THREE YEARS BUT COULD NOT SUBSTANTIATE WITH REGARD TO COMPLETION OF CONST RUCTION OF THE HOUSE WHEREAS THE ASSESSING OFFICER BASED ON REPORT OF THE INSPECTOR OBSERVED THAT CONSTRUCTION OF HOUSE IS NOT COMPLETED HENCE DENIED THE EXEMPTION UNDER SECTION 54F OF THE ACT AND ASSESSED THE INCOME OF RS.3,17,00,000 AND PASSED UNDER SECT ION 143(3) OF THE ACT DT.31.3.2015. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS). WHEREAS THE CIT(APPEALS) HAS CONFIRMED THE ORDER OF THE ASSESSING OFFICER AND DISMISSED THE APPEAL. AGGRIEVED BY THE CIT (APPEALS) ORD ER, THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE CIT(APPEALS) HAS ERRED IN CONFIRMING THE ADDITION IRRESPECTIVE OF THE FACT THAT THE ASSESSEE IS ELIGIBLE FO R EXEMPTION UNDER SECTION 54F OF THE ACT. THE LEARNED AUTHOR ISED REPRESENTATIVE SUBMITTED PAPER BOOK AND SUPPORTING EVIDENCE S OF DEPOSIT OF LONG TERM CAPITAL GAINS IN THE CAPITAL GAINS ACCOUNT SCHEME AND EXPLAINED THAT THE PROPERTY WAS SOLD ON 12.12.2011 IN THE A.Y. 2012 - 13 AND WHEREAS THE ASSESSEE HAS 6 ITA NO.995/BANG/2018 PURCHASED SITE /PLOT FOR CONSTRUCTION OF A RESIDENTIAL HOUSE ON 15.3.2013. FURTHER TO SUBSTANTIATE TH A T THE H OUSE CONSTRUCTION IS COMPLETE, THE ASSESSEE MADE AN APPLICATION TO THE EXECUTIVE ENGINEER, REVENU E INSPECTOR, BBMP, KORAMANGALA TO ISSUE COMPLETION CERTIFICATE . LEARNED AUTHORISED REPRESENTATIVE ALSO SUPPORTED THE CASE WITH THE COPY OF CONFIRMATIONS AND CAPITAL GAINS ACCOUNT SCHEME CERTIFICATE AND PRAYED FOR GRANTING OF EXEMPTION UNDER SECTION 54F OF THE ACT. CONTRA, THE L D. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE CIT ( APPEALS ). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE MATRIX OF THE DISPUTED ISSUE IS ON GRANTING OF EXEMPTION UNDER SECTION 54F OF THE ACT. THE LEARNED AUTHORISED REPRESENTATIVE HAS VEHEMENTLY ARGUED THAT THE ASSESSEE HAS COMPLIED WITH THE CONDITIONS OF DEPOSIT S IN THE CAPITAL GAINS AC COUNT SCHEME AND PERFORMED HOUSE WARMING CEREMONY ON 3.1 0.2014 DULY SUPPORTED WITH THE COPY OF INVITATION CARD AT PAGE 95 OF THE PAPER BOOK AND ALSO LETTERS FILED FOR OBTAINING THE SANCTION INCLUDING LEVELING AND CONSTRUCTION OF COMPOUND WALL. ON PERUSAL OF THE CIT(APPEALS) ORDER, WE FIND THAT THE LD. 7 ITA NO.995/BANG/2018 CIT(APP EALS) HAS ONLY DEALT ON THE ISSUE THAT THE COMPLETION OF THE HOUSE PROPERTY SHOULD BE BEFORE 12.12.2014 I.E. ;WITHIN THREE YEARS FROM DATE OF THE SALE OF PROPERTY. WE FOUND THE ASSESSEE HAS FILED SUBSTANTIVE MATERIAL ON COMPLIANCE OF THE STIPULATED CONDI TIONS BEFORE 12.12.2014. THE LEARNED AUTHORISED REPRESENTATIVE DEMONSTRATED WITH THE COPY OF THE LETTER FILED WITH THE EXECUTIVE ENGINEER FOR ISSUE OF COMPLETION CERTIFICATE APPLICATION OF ELECTRIC CONNECTION AND ASSESSMENT OF HOUSE TAX, CAPITAL GAINS ACC OUNT SCHEME S AND DETAILS OF LEVELING OF THE COMPOUND WALL AND OTHER LETTERS IN RESPECT OF ANNUAL PAYMENT OF TAX. WE FOUND THE CIT (APPEALS) HAS PASSED THE ORDER OVERLOOKING THE VITAL INFORMATION FILED BY THE ASSESSEE IN RESPECT OF COMPLETION OF CONSTRUCTI ON OF HOUSE AND ACCORDINGLY WE SET ASIDE THE ORDER OF THE CIT(APPEALS) AND RESTORE BACK THE ENTIRE DISPUTED ISSUE TO THE FILE OF CIT(APPEALS) TO ADJUDICATE AFRESH TO CONSIDER THE MATERIAL FILED BY THE ASSESSEE IN THE TRIBUNAL AND SHALL PASS A SPEAKING AND REASONED ORDER. NEVERTHELESS TO MENTION THAT THE ASSESSEE SHALL BE AFFORDED A DEQUATE OPPORTUNITY OF HEARING AND SHALL CO - OPERATE IN SUBMITTING THE INFORMATION FOR EARLY DI SPOSAL OF 8 ITA NO.995/BANG/2018 THE APPEAL AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE FOR STATISTICA L PURPOSES. 6. IN THE RESULT, THE ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 7 T H AUG. , 2019. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 7 .0 8 . 2019. *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE