HANS RAJ SHARMA, Jaipur V. ITO, Jaipur

SA 13/JPR/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3769 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 05-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDRA MEHTA
• Keywords: Capital asset; Application of stay; Reasonable cause
• Section: 143(3); 54B; 54F; 147; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM S.A NO. 13/JP/2019 (ARISING OUT OF ITA NO. 504/JP/2016) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2007-08 SHRI HANS RAJ SHARMA, S/O SHRI MOHRU RAM, KANAKPURA, SIRSI ROAD, JAIPUR. CUKE VS. THE ITO, WARD-3(1) JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AKIPB 7268 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI HIMANSHU GOYAL (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI VARINDRA MEHTA (CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 22/03/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 22/03/2019 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THE PRESENT STAY APPLICATION HAS BEEN FILED BY THE ASSESSEE FOR SEEKING STAY AGAINST THE OUTSTANDING DEMAND ARISING FROM THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/ S 147 R.W.S. 143(3) OF THE ACT DATED 22.03.2015 WHEREIN A DEMAND OF RS . 1,64,32,330/- HAS BEEN RAISED ON THE ASSESSEE. S.A. NO.13/JP/2019 SHRI HANSRAJ SHARMA VS. ITO 2 2. THE LD. AR HAS SUBMITTED THAT THE ASSESSEE HAS S OLD TWO PLOTS OF AGRICULTURAL LAND DURING THE FINANCIAL YEAR 2006-07 AND THE SAME HAS BEEN BROUGHT TO TAX IN THE HANDS OF THE ASSESSEE AS CAPITAL ASSET BY IGNORING THE FACT THAT WHAT HAS BEEN SOLD IS THE AG RICULTURAL LAND SITUATED BEYOND THE PRESCRIBED LIMITS OF MUNICIPALI TY. IT WAS FURTHER SUBMITTED THAT THE ASSESSING OFFICER HAS ALSO NOT A LLOWED EXEMPTION U/S 54B AND 54F OF THE ACT. FURTHER, IT WAS SUBMITTED THAT THE ASSESSEE HAS ALSO CHALLENGED IN ITS CROSS OBJECTION THE LEGA LITY OF THE PROCEEDING AND THE ISSUANCE OF NOTICE U/S 148 OF THE ACT WITHO UT SEEKING PROPER SANCTION OF LD. JCIT U/S 151 OF THE ACT. IT WAS FUR THER SUBMITTED THAT THE LD. CIT(A) HAS ALSO NOT APPRECIATED THE FACTS I N RIGHT PERSPECTIVE AND HAS SUSTAINED THE ADDITION MADE BY THE AO, HOWE VER THE ASSESSEE IS OF THE VIEW THAT HE HAS A STRONG PRIMA FACIE CAS E WHERE THE MATTER WOULD BE DECIDED IN FAVOUR OF THE ASSESSEE. IT WAS FURTHER SUBMITTED THAT THE LD. CIT(A) HAS DELETED THE ADDITION TO THE EXTENT OF RS. 55,00,000/- AND THE RESULTANT TAX DEMAND HAS REDUC ED TO RS. 1.40 CRORES, OUT OF WHICH THE ASSESSEE HAS ALREADY PAID RS. 18,00,000/-. IT WAS ACCORDINGLY SUBMITTED THAT THE BALANCE DEMAND M AY KINDLY BE STAYED TILL DISPOSAL OF THE APPEAL FILED BEFORE THE TRIBUNAL. 3. PER CONTRA, THE LD. DR HAS STRONGLY RELIED ON TH E FINDINGS OF THE AO AND LD. CIT(A) AND SUBMITTED THAT THE ASSESSEE H AS NOT BROUGHT ON RECORD ANY MATERIAL WHICH MAY ESTABLISH THAT THE LA ND SO SOLD WERE SITUATED BEYOND 8 K.M. OF MUNICIPALITY AS ON 06.01. 1994. REGARDING DEDUCTION U/S 54B OF THE ACT, IT WAS SUBMITTED THAT THE DEDUCTION HAS RIGHTLY BEEN DENIED FOR THE REASONS THAT THE LAND W AS NOT REGISTERED IN THE NAME OF THE ASSESSEE EVEN AFTER 7 YEARS OF AGRE EMENT TO SALE AND S.A. NO.13/JP/2019 SHRI HANSRAJ SHARMA VS. ITO 3 THE LD. CIT(A) HAS HELD THAT THE TRANSACTION OF PUR CHASE OF LAND IS A SHAM TRANSACTION. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE HAS FAILED TO SATISFY THE NECESSARY INGREDIENT REQUIRED FOR CL AIMING EXEMPTION U/S 54F OF THE ACT. IT WAS ACCORDINGLY SUBMITTED THAT THE REVENUE HAS A STRONG CASE AND THE ASSESSEE MAY BE ASKED TO PAY AT LEAST 50% OF THE OUTSTANDING DEMAND. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, GIVEN THAT THE ASSESSEE HAS ALREADY DEPO SITED RS. 18,00,000/, THE ASSESSEE IS HEREBY DIRECTED TO DEPO SIT A FURTHER SUM OF RS. 10,00,000/- AS SO AGREED BY THE LD AR ON OR BEF ORE 31.03.2019. 5. FURTHER, THE HEARING IN THE MATTER IS ALREADY SC HEDULED FOR 25.03.2019. THE ASSESSEE SHALL NOT SEEK ANY ADJOURN MENT IN THE MATTER AND WHERE ANY ADJOURNMENT IS SOUGHT WITHOUT SHOWING REASONABLE CAUSE TO THE SATISFACTION OF THE BENCH, THE STAY SO GRANTED SHALL STAND VACATED. IN THE RESULT, THE STAY APPLICATION IS DISPOSED OF F IN LIGHT OF ABOVE DIRECTIONS. ORDER PRONOUNCED IN THE OPEN COURT ON 22/03/2019. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 22/03/2019. S.A. NO.13/JP/2019 SHRI HANSRAJ SHARMA VS. ITO 4 * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI HANS RAJ SHARMA, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD-3(1), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {S.A. NO. 13/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR