MANDLEM RAMA RAO,GUNTUR V. .INCOME TAX OFFICER, WARD-1(1), GUNTUR

ITA 513/VIZ/2024

AI Insights

The case involves Mandlem Rama Rao, the appellant-assessee, challenging an order dated 18.10.2024 passed by the Ld.CIT(A) / NFAC concerning the Assessment Year 2018-19. The primary issue was the computation of capital gains under section 48 of the Income Tax Act. The appellant failed to provide necessary submissions and documents to substantiate his claims regarding the sale consideration and improvements made to the property. The Tribunal, considering the circumstances and the fairness of the process, decided to set aside the previous order and remand the case back to the Ld.CIT(A) to allow the appellant another opportunity to present his case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 46575 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Fair market value; Capital Gains
• Section: 48

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM न्यायमूर्ति (सेवा र्िवृत्त) सी.वी. भडंग, माििीय अध्यक्ष एिं श्री एस बालाक ृष्णन, लेखा सदस्य क े समक्ष BEFORE JUSTICE (RETD.) C.V. BHADANG, HON’BLE PRESIDENT & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.513/VIZ/2024 (निर्धारण वर्ा/ Assessment Year: 2018-19) Mandlem Rama Rao D.NO. 9-193-1 Near Kodanda Rama Complex Narayanapuram Village Dachepalli Mandal, Guntur – 522414 Andhra Pradesh [PAN: BVEPM6285R] v. Income Tax Officer -Ward -1(1) Income Tax Office C.R. Building, Kannavari Thota Guntur – 522001, Andhra Pradesh (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व / Assessee Represented by : Shri GVN Hari, AR राजस्व का प्रतततितित्व / Department Represented by : Dr. Aparna Villuri, Sr.AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 20.12.2024 घोर्णधकी तधरीख/Date of Pronouncement : 20.12.2024 आदेश /O R D E R PER JUSTICE (RETD.) C.V. BHADANG, PRESIDENT 1. By this appeal the Appellant-assessee is challenging the order dated 18.10.2024 passed by the Ld.CIT(A) / NFAC and the appeal relates to A.Y.2018-19. 2. We have heard the parties and perused record. I.T.A.No.513/VIZ/2024 Mandlem Rama Rao Page No. 2 3. A perusal of Para 5.3 of the impugned order shows that the appellant had failed to make any submissions and to produce the certificate issued by the Revenue Authorities declaring the Fair Market Value of the property. The Ld.CIT(A) has found that the appellant had failed to substantiate his claim of actual sale consideration or any addition / improvement made in the property. Ld. Counsel for the appellant submitted that the appellant could not utilize the opportunity to put-forth the submission on account of the circumstances beyond his control and that was also the reason for there being a certain amount of delay in filing the appeal and the Ld.CIT(A) has condoned the delay as noticed from Para 5 of the Impugned order. 4. The Ld.DR in all fairness submitted that the only issue is about the computation of the capital gains under section 48 of the Income Tax Act and therefore unless and until the relevant documents about Fair market Value and about the consideration and about the addition / improvement made in the property are produced the issue could not have been decided. 5. Considering the overall circumstances, we find that in the interest of justice and a fair disposal of the matter, one opportunity can be granted to the Appellant–Assessee. In that view of the matter, the impugned order is set-aside and the appeal is restored back to the file of the Ld.CIT(A) for disposal according to law. Needless to mention that the assessee shall cooperate with the I.T.A.No.513/VIZ/2024 Mandlem Rama Rao Page No. 3 Authorities and shall be permitted to produce documents as may be necessary as indicated in Para No. 5.3 of the Ld.CIT(A) order. 6. In the result, the appeal is partly allowed in the aforesaid terms. Order pronounced in the open court on 20th December, 2024. Sd/- (एस बालाक ृष्णन) (S. BALAKRISHNAN) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (न्यायमूर्ति (सेवा र्िवृत्त) सी.वी. भडंग) (JUSTICE (RETD.) C.V. BHADANG) अध्यक्ष /PRESIDENT Dated: 20.12.2024 Giridhar, Sr.PS आदेशकीप्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/ The Assessee : Mandlem Rama Rao D.NO. 9-193-1 Near Kodanda Rama Complex Narayanapuram Village Dachepalli Mandal, Guntur – 522414 Andhra Pradesh 2. रधजस्व/ The Revenue : Income Tax Officer -Ward -1(1) Income Tax Office C.R. Building, Kannavari Thota Guntur – 522001, Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. नवभधगीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ा फ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "