SUBAITHA KHANI SAGUL HAMEETHU,MANAMELKUDI V. .ITO, WARD-1, PUDUKOTTAI

ITA 2498/CHNY/2024

AI Insights

The case involves Mrs. Subaitha Khani Sagul Hameethu, the legal heir of the late A. Sagul Hameethu, who appealed against an assessment order for the Assessment Year 2016-17. The appeal was directed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, which confirmed the addition of Rs. 12.38 Lacs to the income of the assessee under section 56(2)(vii) of the Income Tax Act, 1961. This addition was based on the discrepancy between the stamp duty value and the registered value of a property transaction. The primary legal contention raised was the improper reopening of the assessment beyond the three-year limit without meeting the necessary threshold of income escapement, as required by section 149(1)(b) of the Act.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29296 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Other Referred Cases: Smt. Nelamma (ITA No.1721/Bang/2024 dated 12.12.2024)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. EASWAR LD.
• Assessee Lawyers: Y. SRIDHAR LD
• Keywords: Sale consideration of property below Jantri Value
• Section: 147; 148; 144

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’ \u0010ा यपीठ चे\u0015ई म\u0018। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI मा ननीय +ी मनोज क ुमा र अ/वा ल ,लेखा सद4 एवं मा ननीय +ी मनु क ुमा र िग8र, \u0010ा ियक सद4 क े सम9। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं ./ ITA No.2498/Chny/2024 (िनधा :रणवष: / Assessment Year: 2016-17) Mrs. Subaitha Khani Sagul Hameethu L/H of late A.Sagul Hameethu #681, Kottaipattinam, Manamelkudi-614 619. बना म/ Vs. ITO Ward-1, Pudukottai. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. BJQPH-6104-Q (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001c कीओरसे/ Appellant by : Shri Y. Sridhar (FCA)- Ld.AR \u001f थ\u001cकीओरसे/Respondent by : Shri S. Easwar (JCIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 16-12-2024 घोषणा की तारीख /Date of Pronouncement : 17-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by legal heir of deceased assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 31.07.2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 of the Act on 26.05.2023. In the assessment order, Ld. AO made addition 2 of Rs.12.38 Lacs u/s. 56(2(vii) on the ground that the stamp duty value of the purchased property was more than the registered value. 2. The Ld. AR, at the outset, raised a pertinent legal ground and submitted that the assessment is nullity since the case has been reopened beyond 3 years and quantum of income escaped is less than Rs.50 Lacs. In such a case, the case could not be reopened in terms of Sec.149 (1)(b) which provide that no notice u/s 148 would be issued for relevant AY if three years, but not more than ten years, have elapsed from the end of the relevant AY unless the assessing officer has in his possession books of accounts / documents / evidence etc. which reveal that income chargeable to tax which has escaped assessment amounts to or is likely to amount to Rs.50 Lacs or more. The aforesaid position could not be controverted by revenue. 3. From assessment order, it emerges that case of the assessee for AY 2016-17 was reopened and notice u/s 148 was issued on 18.07.2022. The case was reopened on the ground that the stamp duty value of the purchased property was more than the registered value by Rs.12.38 Lacs. The same was accordingly added to the income of the assessee u/s 56(2)(vii). The Ld. CIT(A) confirmed the same for want of any representation from the assessee. 4. It is quite clear that the case has been reopened beyond 3 years and the quantum of escapement of income is less than the prescribed threshold limit of Rs.50 Lacs. The same clearly contravene the statutory provisions of Sec. 149(1)(b). Our view is duly supported by the decision of Bangalore Tribunal in the case of Smt. Nelamma (ITA No.1721/Bang/2024 dated 12.12.2024) as referred to by Ld. AR. 3 Accordingly, the impugned assessment stand quashed. We order so. Delving into other grounds has been rendered academic exercise. 5. The appeal stand allowed in terms of our above order. Order pronounced on 17th December, 2024. Sd/- (MANU KUMAR GIRI) \u0010ा ियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 17-12-2024 DS आदेशकीUितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु=/CIT Madurai 4. िवभागीय\u001fितिनिध/DR 5. गाडBफाईल/GF "