H P Constructions Private Limited, Hyderabad, Hyderabad V. ITO, Ward-2(2), Hyderabad, Hyderabad

MA 26/Hyd/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7401 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-08-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2005-2006
• Appeal Filed On: 15-06-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY , ACCOUNTANT MEMBER M.A. NO. 2 6 /HYD/2021 (ARISING OUT OF ITA NO. 363 /HYD/201 7 ) ASSESSMENT YEAR : 20 05 - 06 M/S HP CONSTRUCTIONS LLP [ PREVIOUSLY KNOWN AS H.P. CONSTRUCTIONS PVT.LTD., ] HYDERABAD [ PAN:AA ACH9910R] VS. I.T.O. WARD 2 (2) [PRESENTLY WARD - 2 (1)] HYDERABAD ( APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO, ADV. REVENUE BY : SRI ROHIT MUJUMDAR, DR DATE OF HEARING: 16 / 0 7 / 2021 DATE OF PRONOUNCEMENT: 1 9 / 08 /20 21 ORDER PER SMT. P. MADHAVI DEVI, J.M. TH IS M.A . IS FILED BY THE ASSESSEE SEEKING RECTIFICATION OF ALLEGED MISTAKE IN THE ORDER OF THE TRIBUNAL DATED 12 .10.2020 IN ITA NO. 363 /HYD/2017. 2. ACCORDING TO THE LD.COUNSEL FOR THE ASSESSEE, THE TRIBUNAL HAS ALLOWED LEGAL EXPENSES AND OTHER WATCH AND WARD EXPENSES TO BE CONSIDERED WHILE COMPUTING TAXABLE CAPITAL GAIN AND CONSEQUENTLY, THE TRIBUNAL SHOULD DIRECT THE ASSESSING OFFICER TO ALLOW INDEXATION OF SUCH EXPENSES AND SINCE NO SUCH DIRECTION HAS BEEN GIVEN, THERE IS A MISTAKE APPARENT FROM RECORD WHICH NEEDS RECTIFICATION . MA NO . 26/HYD/ 2021 [ARISING OUT OF ITA NO. 363/HYD/2017 ] AY 2005 - 06 M/S HP CONSTRUCTIONS PVT. LTD. HYD. PAGE 2 OF 3 LD.DR SUBMITTED THERE IS NO MISTAKE APPARENT FROM RECORD WHICH NEED TO BE CORRECTED. 3. HAVING REGARD TO THE RIVAL CONTENTIONS AND TH E MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAD ENTERED INTO REGISTERED AGREEMENT OF SALE AND AFTER PROLONGED LITIGATION BEFORE THE CIVIL COURTS, HAD RELINQUISHED HIS RIGHTS OVER THE PROPERTY FOR A CONSIDERATION OF RS.60 LAKHS. IT WAS IN THESE CIRCUM STANCES , THAT THIS TRIBUNAL HAS HELD THAT THE LITIGATION COSTS AND THE EXPENDITURE INCURRED FOR WATCH AND WARD OF THE PROPERTY OVER A PERIOD OF 10 YEARS SHOULD BE CONSIDERED AS AN EXPENDITURE INCURRED FOR ACQUIRING THE RIGHT. HOWEVER, SINCE NO EVIDENCE WAS FILED BY THE ASSESSEE, WE HAVE DIRECTED THAT RS. 10,00,000/ - WOULD BE REASONABLE EXPENDITURE. THE ASSESSEE IS ASKING FOR INDEXATION O F SUCH EXPENDITURE . S INCE THERE IS NO EVIDENCE AS TO THE QUANTUM OR THE PERIOD AS TO WHEN SUCH EXPENDITURE IS INCUR RED , NO SUCH DIRECTION FOR INDEXATION CAN BE GIVEN . THUS, THE M.A. FILED BY THE ASSESSEE IS DISMISSED. 4 . IN THE RESULT, THE M.A. FILED BY ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH AUGUST , 2021 . SD/ - SD/ - (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 19 TH AUGUST , 2021 . *MANGA /SPS MA NO . 26/HYD/ 2021 [ARISING OUT OF ITA NO. 363/HYD/2017 ] AY 2005 - 06 M/S HP CONSTRUCTIONS PVT. LTD. HYD. PAGE 3 OF 3 COPY TO: S.NO ADDRESSES 1 M/S. HP CONSTRUCTIONS LLP (PREVIOUS KNOWN AS HP CONSTRUCTIONS PVT. LTD. ) C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3 - 6 - 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500 0 29 2 INCOME TAX OFFICER , WARD 2(2) [(PRESENTLY WARD 2(1) ] HYDERA BAD 3 CIT(A) - 2, HYDERABAD 4 PR.CIT - 2 , HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE