Smt P.K Vijayalakshmi , Bangalore V. Income Tax Officer Ward-5(2)(2), Bangalore

SA 101/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6227 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 08-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B S BALACHANDRAN
• Keywords: Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P. BOAZ , ACCOUNTANT MEMBER SP NO.101/BANG/2019 [ IN I TA NO. 3381/BANG/2018 ] ASSESSMENT YEAR : 2011 - 12 SMT. P.K. VIJAYALAXMI, C/O. PAMADI RAMACHANDRA SETTY & SONS, 513, AVENUE ROAD, BENGALURU 560 002. PAN: AAGPV 9692M VS. THE INCOME TAX OFFICER, WARD 5(2)(2), BANGALORE. APP EL L ANT RESPONDENT APP ELL ANT BY : SHRI B.S. BALACHANDRAN, ADVOCATE . RE SPONDENT BY : DR. P.V. PRADEEP KUMAR, ADDL.CIT(DR), ITAT, BENGALURU. DATE OF HEARING : 22. 0 3 .2019 DATE OF PRONOUNCEMENT : 22 . 0 3 . 201 9 O R D E R PER N V VASUDEVAN, VICE PRESIDENT THIS IS A PETITION FILED BY THE ASSESSEE, SEEKING FOR AN ORDER OF STAY OF RECOVERY OF OUTSTANDING DEMAND OF A SUM OF RS.46 ,13,401 IN RELATION TO ASSESSMENT YEAR 2011-12. 2. THE ASSESSEES HUSBAND P.R. KUPPURAMA SETTY WAS THE OWNER OF PROPERTY AT HORAMAVU VILLAGE IN BANGALORE. BY HIS LAST WILL AND TESTAMENT, HE BEQUEATHED LIFE INTEREST IN THE PROPERTY TO THE ASSESSEE WHO WAS HIS WIFE AND ABSOLUTE INTEREST AFTER THE LIFETIME OF HI S WIFE TO MR. KIRAN S. ITA NO. SP NO.101/BANG/2019 PAGE 2 OF 3 PAMADI AND MR. NIRANJAN S. PAMADI WHO WERE HIS NEPH EWS. THE PROPERTY WAS SOLD AFTER THE LIFETIME OF P.R. KUPPURAMA SETTY , FOR A CONSIDERATION OF RS.2,45,02,500. THE ASSESSEE GOT HER SHARE (CLAIME D TO BE 1/3 RD ) OF THE TOTAL CONSIDERATION AT RS.81,67,500. WHILE COMPUT ING CAPITAL GAIN, THE ASSESSEE CLAIMED DEDUCTION U/S. 54EC OF THE INCOME- TAX ACT, 1961 [THE ACT] ON A SUM OF RS.50 LAKHS, WHICH WAS INVESTED I N REC BONDS. THE AO, HOWEVER, HELD THAT ASSESSEE WAS THE OWNER OF EN TIRE PROPERTY AND COMPUTED LONG TERM CAPITAL GAIN AS FOLLOWS:- SALE CONSIDERATION OF THE PROPERTY AS PER SALE DEED DATED 02.08.2010 : RS.2,45,02,50 0 LESS: INDEXED COST OF ACQUISITION : RS. 11,61,4 18 -------------------- INCOME FROM LONG TERM CAPITAL GAINS RS.2,33,41,082 LESS: EXEMPTION U/S. 54EC RS. 50,00,000 -------------------- TAXABLE LONG TERM CAPITAL GAINS RS.1,83,41,082 -------------------- 3. ON APPEAL BY THE ASSESSEE, THE CIT(APPEALS) CONF IRMED THE ORDER OF AO. HENCE THE APPEAL BY THE ASSESSEE BEFORE THE TR IBUNAL. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE ARE OF THE VIEW THAT THE CONCLUSION OF THE REVENUE AUTHORITIES THAT THE ASSE SSEE WAS THE OWNER OF THE ENTIRE PROPERTY IS PRIMA FACIE NOT CORRECT AND THE ASSESSEE HAD ONLY A LIFE INTEREST OVER THE PROPERTY THAT WAS SOLD. THE ASSESSEE THEREFORE HAS A VERY STRONG PRIMA FACIE CASE. THE ASSESSEE HAD ALREADY PAID A SUM OF RS.21,74,904 OUT OF THE TOTAL OUTSTANDING DEMAND OF RS.67,88,305 OUT OF WHICH TAX COMPONENT IS RS.36,30,118. THE ASSESSEE HAS PAID MORE THAN 50% OF THE OUTSTANDING TAX COMPONENT OF OUTSTANDING DEMAND I.E., AFTER EXCLUDING LIABILITY ON ACCOUNT OF INTEREST. KEEPIN G IN MIND THE EXISTENCE OF A PRIMA FACIE CASE, BALANCE OF CONVENIENCE AND RELATIVE HARDSHIP , WE ARE OF THE VIEW THAT THERE SHOULD BE AN ORDER OF STAY OF R ECOVERY OF OUTSTANDING ITA NO. SP NO.101/BANG/2019 PAGE 3 OF 3 DEMAND FOR A PERIOD OF SIX MONTHS FROM THE DATE OF THIS ORDER, OR TILL THE DISPOSAL OF THE APPEAL, WHICHEVER IS EARLIER. 5. THE APPEAL OF THE ASSESSEE HAS ALREADY BEEN LIST ED FOR HEARING ON 26.06.2019. THE HEARING OF THE APPEAL OF THE ASSES SEE IS PREPONED TO 22.05.2019, WHICH DATE WAS ANNOUNCED IN THE OPEN CO URT AND NO NOTICE OF HEARING WILL BE SENT TO PARTIES. 6. IN THE RESULT, THE STAY PETITION IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF MARCH, 2019. SD/- SD/- ( JASON P. BOAZ ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE, DATED, THE 22 ND MARCH, 2019. / D ESAI S MURTHY / COPY TO: 1. THE APP ELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.