THE COMMISSIONER OF INCOME TAX vs. K.NANDAKUMAR

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ITA/234/2013HC KeralaKLHC01026119201316 July 2015Bench: HONOURABLE MR. JUSTICE SHAJI P.CHALY,HONOURABLE MR.JUSTICE ANTONY DOMINIC5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that subsequent to the ITAT's order, the Assessing Officer had re-considered the matter and denied the deduction claimed by the assessee. It was also stated that the assessee had filed a further appeal before the Commissioner of Income Tax (Appeals) against this subsequent order. In light of these developments, the High Court deemed it unnecessary to delve into the merits of the rival contentions presented in the appeal before it. Consequently, the appeal was disposed of, leaving the parties to pursue the matter before the concerned authority who was seized of the subsequent appeal.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax, filed an appeal before the High Court of Kerala against an order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The ITAT had partly allowed an appeal filed by the assessee, K. Nandakumar, against an order passed by the Commissioner of Income Tax (CIT) in a suo motu revision. The CIT had directed the Assessing Officer (AO) to deny deduction under Section 54 of the Income Tax Act. The ITAT directed the AO to examine the assessee's eligibility for exemption under Section 54, specifically concerning the non-deposit of the capital gain amount in the specified account as required by Section 54(2). The High Court noted that subsequent to the ITAT's order, the AO had re-considered the matter and denied the deduction, and the assessee had filed a further appeal before the CIT (Appeals).

What were the issues?

1. Whether the assessee is eligible for deduction under Section 54 of the Income Tax Act, 1961, when the capital gain amount was not deposited in the specified account as provided under Section 54(2) of the Act. The Revenue contended that the assessee was not eligible for the deduction. The assessee argued for eligibility. The ITAT directed the AO to examine this issue. The High Court was asked to decide on the merits of the ITAT's order, which had partly allowed the assessee's appeal by directing further examination of eligibility under Section 54(2).

Which sections of the Income-tax Act were involved?

Section 54,Section 54(2)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE SHAJI P.CHALY THURSDAY, THE 16TH DAY OF JULY 2015/25TH ASHADHA, 1937 I.TA.No. 234 of 2013 () ----------------------- AGAINST THE ORDER IN ITA NO.485/COCH/2011 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 28-02-2013. APPELLANT/RESPONDENT: -------------------------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADVS.SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S)/APPELLANT: ------------------------------------------ K.NANDAKUMAR, TC 2/2526(3), TKV NAGAR, GOLF LINKS ROAD, TRIVANDRUM -695 003. BY ADVS. SRI.K.ANAND (SR.) SMT.LATHA KRISHNAN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 16-07-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.T.O.

I.T.A.NO.234 OF 2013 APPENDIX APPELLANT'S ANNEXURES: ANNEXURE-A: TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER U/S.143 (3) DATED 29/2-12/2008. ANNEXURE-B: TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX U/S. 263 DATED 03.02.2011. ANNEXURE-C: TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER U/S. 143 (3)/263 DATED 06.05.2011. ANNEXURE-D: TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 08.03.2013. ANNEXURE-E: TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 28.02.2013. RESPONDENT'S ANNEXURES: NIL //TRUE COPY// P.S. TO JUDGE St/-

ANTONY DOMINIC & SHAJI P. CHALY, JJ. ----------------------------------------------- I.T.A. No.234 of 2013 ----------------------------------------------- Dated this the 16th day of July, 2015 JUDGMENT Antony Dominic, J. Heard the learned Senior Standing Counsel for the appellant and the learned Senior Counsel appearing for the Respondent. 2. Revenue has filed this appeal against the order passed by the Income Tax Appellate Tribunal, Cochin in I.T.A.No.485/Coch/2011. Appeal to the Tribunal was preferred by the Respondent against the order passed by the Commissioner in a suo motu revision directing the Assessing Officer to deny deduction under Sec.54 of the Income Tax Act. By the impugned order, the Tribunal partly allowed the appeal, and directed the Assessing Officer to examine whether the Respondent is eligible for exemption under Sec.54 when the capital gain amount was not deposited in the specified account as provided under Sec.54(2) of the Act.

I.T.A.No.234 of 2013 2 3. Though this order is challenged on various grounds, the learned Senior Counsel for the Respondent informs that in compliance with the directions of the Tribunal, the Assessing Officer re-considered the matter and passed order denying the deduction claimed by the assessee. It is also stated that against the order of the Assessing Officer, the assessee has filed an appeal before the Commissioner of Income Tax (Appeals) on 27.12.2013 and that the said appeal has been numbered as ITA No.108/TVM/CIT(A)/2013-14. 3. In the light of the above developments subsequent to the order impugned, we do not think it necessary to go into the merits of the rival contentions. 4. The appeal is therefore disposed of leaving the parties to agitate the matter before the concerned authority who is now seized of the matter. Sd/-

ANTONY DOMINIC

JUDGE Sd/-

SHAJI P. CHALY JUDGE //true copy// P.S. to Judge

I.T.A.No.234 of 2013 3 St/-

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