AI Insights
The case involves five miscellaneous applications filed by Ramesh Babu Nimmatoori and others against the consolidated order of the Income Tax Appellate Tribunal dated 14.08.2024. The applications sought to recall the order which confirmed the addition of Rs.24,07,600 to the assessee's income under section 56(2)(x) of the Income Tax Act, 1961. The addition was based on the difference between the stamp duty value and the actual consideration paid for property purchases. The assessee argued that the amended provisions of section 50C, applicable from the assessment year 2020-2021, were incorrectly applied to their case for the year 2018-2019. The Tribunal, however, found that the provisions of section 50C were correctly applied and that there was no mistake in the original order.
Appeal Details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 38128 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
25-02-2025
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
DB-A
Assessment Year
2018-2019
Judgement Text
"IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH : HYDERABAD BEFORE SHRI G. MANJUNATHA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER Sl.No. M.A.No. Arising out of ITA.No. Name of Applicant /Assessee Name of Respondent A.Y. 1. 2/Hyd./2025 619/Hyd./2022 Ramesh Babu Nimmatoori, Hyderabad. PAN ACSPN1659G ACIT, Central Circle-2(4), Hyderabad 2018-19 2. 3/Hyd./2025 618/Hyd./2022 Yashoda Nimmatoori, Hyderabad PAN ACSPN1657J 2018-19 3. 4/Hyd./2025 620/Hyd./2022 Sulochana Nimmatoori, Hyderabad PAN ACSPN1664K 2018-19 4. 5/Hyd./2025 621/Hyd./2022 Raja Babu Nimmatoori, Hyderabad PAN ACSPN1662R 2018-19 5. 8/Hyd./2025 476/Hyd./2022 Anudeep Nimmatoori, Hyderabad PAN AHBPN2081Q 2018-19 For Assessees : CA P Murali Mohan Rao For Revenue : Shri Srinath Sadanala, SR AR Date of Hearing : 21.02.2025 Date of Pronouncement : 25.02.2025 2 M.A.Nos.2 to 5 & 8/Hyd./2025 ORDER PER G. MANJUNATHA, A.M. : Through the above five miscellaneous applications, the assessee’s therein seeks to recall the consolidated order of the Tribunal dated 14.08.2024 for the assessment year 2018-2019 of their respective appeals. 2. During the course of hearing, Learned Counsel for the Assessee submitted that the Tribunal has erred in law and on fact in confirming the order of the learned CIT(A) in sustaining the addition made by the Assessing Officer for an amount of Rs.24,07,600/-, being the difference between the stamp duty value and consideration paid for purchase of property u/sec.56(2)(x) of the I.T. Act, 1961. He submitted that the amended provisions of sec.50C and proviso therein is applicable from assessment year 2020-2021 onwards and, therefore, there is a mistake apparent on record in the consolidated order of the Tribunal dated 14.08.2024 and accordingly pleaded that the order of the Tribunal dated 14.08.2024 may please be recalled in the interest of justice. 3 M.A.Nos.2 to 5 & 8/Hyd./2025 3. The Learned DR, on the other hand, strongly relied on the consolidated order of the Tribunal dated 14.08.2024 and submitted that there is no apparent mistake crept in the order of the Tribunal. He accordingly submitted that that the order of the Tribunal is in accordance with the provisions of the Income Tax Act and submitted that the miscellaneous applications filed by the respective assessee’s be dismissed in the interest of justice. 4. We have heard the rival submissions of both the parties and perused the material on record. We find no force in the submissions of the Learned Counsel for the Assessee to the effect that amended provisions of sec.50C and proviso therein is applicable from the assessment year 2020-2021 onwards. The fact remains is that as per first proviso to sec.50C of the Act which came into statute w.e.f. 01.04.2017 relevant to assessment year 2017-2018, in case any agreement is entered into for purchase of property fixing the consideration and the date of agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value 4 M.A.Nos.2 to 5 & 8/Hyd./2025 adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purpose of computing the full value of consideration for such transfer, provided the amount of consideration or a part thereof has been received by way of account payee cheque or bank draft or by use of electronic clearing system through bank account. The Tribunal has given a categorical finding in light of evidence filed by the assessee that the argument of the assessee in light of agreement in the year 2007 as part consideration was paid in cash for purchase of property is not supported by relevant evidence and, therefore, rejected the claim of the assessee for application of first proviso to sec.50C of the Act. In our considered view, the factual finding recorded by the Tribunal is based on relevant facts and law to the application of differential sum of sale consideration (-) fair market value as income of assessee’s for the year under consideration u/sec.56(2)(x) of the Act. We are, therefore, of the considered view that the Tribunal has not committed any mistake much less an apparent mistake on record so as to invoke it’s jurisdiction 5 M.A.Nos.2 to 5 & 8/Hyd./2025 u/sec.254(2) of the Act to recall the consolidated order of the Tribunal dated 14.08.2024 in case of respective assessee’s in the instant five miscellaneous applications for the assessment year 2018-2019. Accordingly, the M.As. of these assessee’s are dismissed. 5. In the result, these five miscellaneous applications of respective assessee’s are dismissed. A copy of this common order be placed in the respective case files. Order pronounced in the open Court on 25.02.2025. Sd/- Sd/- [K. NARASIMHA CHARY] [G.MANJUNATHA] JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Date 25th February, 2025 VBP Copy to 1. S/Shri, Ramesh Babu Nimmatoori, Yashoda Nimmatoori, Sulochana Nimmatoori, Raja Babu Nimmatooriand Anudeep Nimmatoori, C/o. Shri P. Murali & Co. C.As. 6-3-655/2/3, Somajiguda, Hyderabad – 500 082. 2. The ACIT, Central Circle-2(4), Hyderabad 3. The Pr. CIT, Central, Hyderabad 4. The DR ITAT ‘A” Bench, Hyderabad 5. Guard File //By Order// //True Copy// Sr. Private Secretary : ITAT : Hyderabad Benches, Hyderabad. "
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