Income TAx Officer Ward-5(3)(3), Bangalore V. Rajesh Puneyani , Bangalore

MA 41/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6515 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-11-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 12-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B L GURUPRASAD
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N V VASUDEVAN, VICE PRESIDENT AND S HRI B R BASKARAN , ACCOUNTANT MEMBE R THE INCOME TAX OFFICER, WARD 5(3)(3), BANGALORE. VS. SHRI RAJESH PUNEYANI, NO.38A, DREAM MEADOWS, NEAR RYAN INTERNATIONAL SCHOOL, KUNDALAHALLI, BENGALURU 560 037. PAN: ALZPP 1327R APP L IC ANT RESPONDENT APP LIC ANT BY : SHRI B.L. GURUPR ASAD, ADDL.CIT RESPONDENT BY : SH RI KASHINATH KALMATH, ADVOCATE DATE O F HEARING : 25 . 1 0 .2019 DATE OF PRONOUNCEMENT : 01 . 1 1 .2019 O R D E R PER N V VASUDEVAN, VICE PRESIDENT THIS IS A MISCELLANEOUS PETITION FILED BY THE REVENUE U/S. 254(2) OF THE INCOME-TAX ACT, 1961 [THE ACT] PRAYING FOR RE CTIFICATION OF AN ERROR APPARENT ON THE FACE OF THE ORDER OF TRIBUNAL DATED 24.09.2018. 2. ONE OF THE ISSUES THAT AROSE FOR CONSIDERATION IN THE AFORESAID APPEAL BY THE ASSESSEE WAS WITH REGARD TO CORRECTNE SS OF THE ACTION OF THE REVENUE AUTHORITIES IN BRINGING TO TAX CAPITAL GAIN ON SALE OF FARIDABAD PROPERTY AS GIVING RISE TO SHORT TERM CAPITAL GAIN. THE ADMITTED FACTUAL POSITION WAS THAT FARIDABAD PROPERTY WAS PURCHASED ON 27.3.2012 AND WAS MP NO.41/BANG/2019 [IN ITA NO. 1267/BANG/2018] ASSESSMENT YEAR : 2013 - 14 MP NO.41/BANG/2019 PAGE 2 OF 3 SOLD ON 1.10.2012 RESULTING IN A SHORT TERM CAPITAL GAIN OF RS.75,000. THE TRIBUNAL IN ITS ORDER IN PARA 10 CONSTRUED THE DATE OF PURCHASE I.E., 27.3.2012 AS THE DATE OF SALE AND CONSEQUENTLY REND ERED A FINDING THAT THE TRANSFER OF FARIDABAD PROPERTY TOOK PLACE IN THE PR EVIOUS YEAR RELEVANT TO AY 2012-13 AND THEREFORE SHORT TERM CAPITAL GAIN ON SALE OF THAT PROPERTY CANNOT BE BROUGHT TO TAX IN AY 2013-14. IN THIS MI SCELLANEOUS PETITION, THE REVENUE HAS POINTED OUT THAT THE ADMITTED DATE OF S ALE OF FARIDABAD PROPERTY WAS 1.10.2012 AND THEREFORE SHORT TERM CAP ITAL GAIN WAS RIGHTLY BROUGHT TO TAX IN AY 2013-14. 3. THE LD. DR REITERATED THE STAND OF REVENUE AS CO NTAINED IN THE MISCELLANEOUS PETITION. THE LD. COUNSEL FOR THE AS SESSEE COULD NOT CONTROVERT THE ADMITTED FACTUAL POSITION AS POINTED OUT BY THE REVENUE IN THE MISCELLANEOUS PETITION. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THERE IS AN APPARENT MISTAKE ON THE FACE OF ORDER OF TRIB UNAL. THE ADMITTED FACTUAL POSITION AS ENUMERATED IN PARA 6 OF THE ORD ER OF TRIBUNAL IS THAT THE FARIDABAD PROPERTY WAS SOLD ON 1.10.2012 AND ADMITT EDLY THERE WAS A SHORT TERM CAPITAL GAIN OF RS.75,000. IN PARA 10 O F THE ORDER OF TRIBUNAL, THE TRIBUNAL HAS PROCEEDED ON THE BASIS THAT THE DA TE OF SALE OF FARIDABAD PROPERTY WAS 27.3.2012 WHICH IS FACTUALLY INCORRECT AND A MISTAKE APPARENT ON THE FACE OF RECORD. CONSEQUENTLY, PARA 10 OF TH E ORDER OF TRIBUNAL DATED 24.09.2018 IS SUBSTITUTED TO READ AS UNDER:- 10. WE HAVE GIVEN A CAREFUL CONSIDERATION TO THE RIVAL SUBMISSIONS. IT IS UNDISPUTED THAT THE FARIDABAD P ROPERTY WAS PURCHASED ON 27.3.2012 AND SOLD ON 01.10.2012 A ND THERE WAS A RESULTANT SHORT TERM CAPITAL GAIN OF RS .75,000. THEREFORE, THE REVENUE AUTHORITIES WERE JUSTIFIED I N BRINGING MP NO.41/BANG/2019 PAGE 3 OF 3 TO TAX SHORT TERM CAPITAL GAIN OF RS.75,000 ON SALE OF FARIDABAD PROPERTY. CONSEQUENTLY, THE ORDER OF REV ENUE AUTHORITIES ON THIS ISSUE IS UPHELD. 5. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE REVENUE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY OF NOVEMBER, 2019. SD/- SD/- ( B R BASKARAN ) ( N V V ASUDEVAN ) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE, DATED, THE 1 ST NOVEMBER, 2019. / D ESAI S MURTHY / COPY TO: 1. A PPLICANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, I TAT, BANGALORE. 6. GUARD FIL E BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.