INCOME TAX OFFICER, WARD-2, SATNA vs. SMT. JHARNA BHATTACHARYA, SATNA

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR

BEFORE SHRI SANJAY ARORA, HON’BLE ACCOUNTANT MEMBER & SHRI MANOMOHAN DAS, HON'BLE JUDICIAL MEMBER

I.T.A. No. 225/JAB/2018 (Asst. Year: 2009-10) Income Tax Officer, vs. Seema Bhattacharya, Ward-2, Satna. W/o late Shankar Bhattacharya, Mukhtiyar Ganj, Satna [PAN : AXIPB 0686 L] (Appellant) (Respondent)

C.O. No. 25/JAB/2018 (arising out of I.T.A. No. 225/JAB/2018) (Asst. Year: 2009-10) Seema Bhattacharya, vs. Income Tax Officer, W/o late Shankar Bhattacharya, Ward-2, Satna. Mukhtiyar Ganj, Satna [PAN : AXIPB 0686 L] (Appellant) (Respondent)

I.T.A. No. 226/JAB/2018 (Asst. Year: 2009-10) Income Tax Officer, vs. Jharna Bhattacharya, Ward-2, Satna. W/o Bhaskar Bhattacharya, Mukhtiyar Ganj, Satna [PAN: ANYPB 2891 B] (Appellant) (Respondent)

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ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya C.O. No. 26/JAB/2018 (arising out of I.T.A. No. 226/JAB/2018) (Asst. Year: 2009-10)

Jharna Bhattacharya, vs. Income Tax Officer, W/o Bhaskar Bhattacharya, Ward-2, Satna. Mukhtiyar Ganj, Satna [PAN : ANYPB 2891 B] (Appellant) (Respondent)

Appellant by : Shri Sapan Usrethe, Advocate Respondent by : Shri Rakesh Kumar Gupta, Sr. DR

Date of hearing : 08/08/2022 Date of pronouncement : 08/08/2022

CORRIGENDUM Per Bench Order under section 254(1) of the Income Tax Act, 1961 (‘the Act’) in the captioned appeals was passed on 05/08/2022. It is, however, found that there have occurred certain omissions in the said order, which are, therefore, hereby sought to be rectified through this corrigendum order. The same being only correction of those errors, do not therefore per se cause any prejudice to either party. The details are as under:- Para 2.1 (pg.2) a) The comma (,) after the words ‘sewing work’ in the second sentence of the para (pg. 2) be deleted, and the words ‘these plots of land’ in the said sentence (pg. 3) be read as ‘19 plots of land’. b) The following words be inserted after the words ‘capital gain u/s. 54B’ in he clause (c) of the para (pg. 3): ‘, and sans any finding in the matter’

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ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya Para 2.2 (pg.4) a) The word ‘has’ after the word ‘assessee’ be read as ‘had’ in the sentence beginning with the sentence ‘The claim for deduction’ in the second sub-para. Similarly the word ‘has’ in the following sentence be read as ‘had’. b) the word ‘remain’ in the sentence next following, beginning with the words ‘Furthermore, there was ……..’ be read as ‘remained’ c) the word ‘same’ in the next sentence beginning with the words ‘The assessee’s explanation of ……..’ be read as ‘said explanation’ (at pg. 5) d) the word ‘similarly’ in the following sentence (at pg.5) be followed by the words: ‘we are given to understand’. e) the word ‘revenue’ be read before the words ‘audit objection’ in the sentence beginning with the words ‘The Revenue’s appeals there-against………’ in sub-para 3 (at pg.5) f) the word ‘be’ read between the words ‘including’ and ‘two HUF’s’ in the said sentence and the word ‘of’ be read after the word ‘view’. (pg. 5)

Para-4 (pg.6) a) the words ‘by the Revenue’ be read after the words ‘remedial action’ in the sentence beginning with the sentence ‘How could these issues……….’ b) the following sentence be read after the sentence ending with the words ‘revenue audit objection’: ‘The revisionary authority, whose order/s has again attained finality, clearly required the AO to examine the matter comprehensively, considering the entirety of facts.’ c) the word ‘would’ before the words ‘in any case’ and the words ‘being’ after the words ‘CO’s’ in the last sentence of the para (beginning with the words ‘This would have..’ be omitted, and the word ‘survive’ be read as ‘survived’ and COs as ‘COs, i.e.,’

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ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya

Para-5 (pgs. 6,7) a) Para 5.1 be read as ‘para 5’, with para 5.1 beginning with the sentence ‘The ld. CIT(A) has held…...’ b) ‘,’ be inserted after the words ‘to the HUF’s’ in the first sentence of para 5.

Para-5.1 (pg. 8) a) the words ‘could be given cognizance to’ in the sentence beginning with the words ‘Even as observed during hearing…’ (at pg.8) be read as ‘ could be taken cognizance of’. b) the following be read after the words ‘partition being made’ in the sentence next following: (also see: TRO v. Karri Ramakrishna Reddy [1984] 145 ITR 739 (SC))’ c) the following sentence be read after the sentence next following, ending with the words ‘would be partial’: ‘Why, in that case, one may ask, the capital gain not returned in the hands of the HUFs, or even the larger HUF of the father (BMB), even as it would raise questions qua the investment of the sale proceeds in the name of the wives of the (erstwhile) karta inasmuch as it could only be for the benefit of the family. (refer: Manji Dana v. CIT [1966] 60 ITR 582 (SC)). Further,’ d) the word ‘subsequent’ occurring before the word ‘partition’ in the last sentence of the said sub-para be omitted, and substituted by the words ‘at any time’ after the said word. e) the word ‘had’ in the sentence beginning with the words ‘As explained in Kalooram …..’ be read as ‘has’ (sub-para 2, pg.8) f) the following sentence be read after the sentence ending with the words ‘wholly unproved’ in the sub-para 2 (pg.8): ‘Reference in this context may also be made to the decision in Kanhaiyalal Thawarji v. CIT [1989] 176 ITR 329 (MP).

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ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya g) the word ‘the’ in the last sentence of the said sub-para (pg. 9), before the words ‘joint family property’ be read as ‘a’. h) the words ‘and de hors the record’ be read after the words ‘fatuous’ in the sentence beginning with the word ‘In short,…….’ in third sub-para (pg.9)

Para 5.2 a) the word ‘is’ be read after the words ‘sold’ in the second sentence of the para 5.2 (pg.9) b) the word ‘is’ read as the words ‘That is, …..’ i.e., in the sentence beginning with the said words (pg.9) c) the words ‘of income’ be read afer the words ‘SB per her return’ in the sentence beginning with the words ‘As regards the ….’ (at pg. 9) d) the words ‘, or the satisfaction of other conditions thereof’ be read after the words ‘provided u/s. 54F’ in the second sentence of the said sub-para (pg.10). e) the words ‘falling to the share of’ occurring’ before the words ‘JB’ in the second sub-para (pg.10) be omitted and substituted the word ‘by’ f) the word ‘so that’ and the words ‘arising on the said sale’ be read before and after the words ‘the capital gain’ occurring in the said sub-para. g) the words ‘, which does not though mean that it must to him’ be read after the words ‘does not arise’ in the last sentence of the said sub-para (pg.10)

Para-5.3 a) the word ‘sold’ be read as and the words ‘‘sold’’ and the word ‘,i.e.,’ be omitted in the first sentence of the para (at pg.10) b) the following sentence be read after the first sentence ending with the words ‘nature of trade’ (pg.10): ‘(refer, inter alia, G. Venkataswami Naidu & Co. v. CIT [1959] 35 ITR 594 (SC))’

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ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya c) the following words be inserted after the words ‘plotting itself’ in the second sentence of the said sub-para (pg.10): ‘; the same necessarily entailing expenditure, including on laying of passages/internal roads leading to the plots, or provision of any services (if any), etc.,’ d) the words ‘as the’ occurring before the words ‘consideration in terms of s.45(2)’ in the following sentence of the said para be omitted.

e) the following words be read after the words ‘This deemed consideration’ in the sentence beginning with the said words : ‘as well as the cost of plotting, which may be, explaining the source, regarded as borne equally,’ (pg. 10)

f) the word ‘with’ occurring after the words ‘application of income’ in the sentence beginning with the sentence ‘No income……..’ in the para be read as ‘and’ (pg.10) g) the word ‘sold’ in the last sentence of the first sub-para be read as ‘‘sold’’ (pg.11). h) the following sentence be read after the last sentence of the second sub-para beginning with the words ‘The matter, accordingly,………’ (at pg.11): ‘We have already clarified that it is a case of an open set aside by the revisionary authority. The AO shall also clarify the number of plots, on which aspect we though observe no dispute, are yet written variously at 18 (19) as also at 44 (45).’

Para 5.4 (pg.11) a) the words ‘in her return’ be read after the words ‘ Rs. 48.78 lacs is stated’ in the sentence beginning with the sentence ‘For example ……… (pg.11) b) the following sentence be read after the said sentence (pg.11): ‘The AO’s – who has worked out the ‘net consideration’ on the basis of the sale deeds, calculation, we note, has not been disputed by the assessee, who admits the shortfall and explains the same as sourced from a prospective buyer. A cash reconciliation would, nevertheless, require being prepared, with we having in fact also observed an absence of any finding qua the expenditure incurred on plotting.’ 6 | P a g e

ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya c) the word ‘also’ before the word ‘hereby’ in the following sentence be read after the said word. d) the words ‘deemed as income’ be read between the words ‘being’ and ‘u/s. 69/69A’ in the said sentence, and the words ‘in the name of’ be read as ‘by’ e) the words ‘without evidence’ be read between the words ‘cannot be’ and ‘ascribed to her spouse’ in the said sentence, and the words ‘her spouse’ be followed by the following words: ‘, and is by law to be satisfactorily explained by her. That is, no difference prima facie qua this income, in contradistinction to ‘capital gains’, would obtain between JB and SB’

Para 5.5 (pg.12) a) the words ‘in those cases’ be read after the words ‘before the Tribunal’ in the sentence beginning with the words ‘Firstly, there is,……….’ b) the word ‘law’ be read after the word ‘trite’ in the sentence beginning with the words ‘That apart, it is only…..’ Para-6 a) the word ‘and’ be read before the words ‘ITA 226/2018’

Sd/- Sd/- (Manomohan Das) (Sanjay Arora) Judicial Member Accountant Member Dated: 08/08/2022 vr/-

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ITA No. 225 & 226/JAB/2018 (AY: 2009-10) C.O.No. 25 & 26/JAB/2018 Seema Bhattacharya & Jharna Bhattacharya Copy to: 1. The Appellant - ITO, Ward-2, Satna. 2. The Respondent – Seema Bhattacharya, W/o Bhaskar Bhattacharya, Mukhtiyar Ganj, Satna 3. The Principal CIT-2, Jabalpur (MP) 4. The CIT(A)-1, Jabalpur (MP) 5. The Sr.D.R., ITAT, Jablapur 6. Guard File. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Jabalpur.

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