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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLESmt. Chinnam Sreevalli, vs.
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 197/VIZ/2018 (Asst. Year : 2013-14) Smt. Chinnam Sreevalli, vs. ITO, Ward-2, Eluru. Plot No. 211, Canara Bank Layout, 6th Main Road, Kodigehalli, Bangalore. PAN No. ADAPC 4277 E (Appellant) (Respondent)
Assessee by : Shri G.V.N. Hari – Advocate. Department By : Shri D.K. Sonawal – CIT DR Date of hearing : 01/07/2019. Date of pronouncement : 04/07/2019. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER
This appeal by the assessee is directed against the order of Principal Commissioner of Income Tax, Rajahmundry, dated 28/03/2018 for the Assessment Year 2013-14. 2. Facts of the case, in brief, are that the assessee is an individual, filed return of income electronically by declaring total income of Rs. 6,79,700/-. Subsequently, case of the assessee was selected for scrutiny under CASS and after following due procedure, assessment was completed u/sec. 143(3) on
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22/12/2015 assessing the total income at Rs. 7,24,696/-. Subsequently, Pr.CIT while exercising the powers conferred in him u/sec. 263, has noted that the assessee has claimed exemption from long term capital gains u/sec. 54F & 54BC totalling to Rs.1.21 crores on which claim u/sec. 54F was about Rs. 93.34 lakhs. As seen from the record, the exemption was allowed by the Assessing Officer without ascertaining whether the basic condition to allow exemption u/sec. 54F i.e. that the capital gain should be invested in a new residential house is fulfilled or not. The Pr.CIT further found that the order passed by the Assessing Officer is erroneous and prejudicial to the interests of the Revenue for the reason that the claim made by the assessee was allowed without making necessary enquiry and he called the explanation from the assessee. Before the Pr.CIT, the assessee has submitted that all the details were furnished before the Assessing Officer and after examining the entire issue, claim made by the assessee was allowed. However, the Pr.CIT is not accepted the explanation of the assessee and he found that assessment order dated 22/12/2015 is erroneous and prejudicial to the interests of the Revenue and accordingly assessment is set aside and directed the Assessing Officer to examine all the details and pass necessary orders.
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On appeal before us, ld. counsel for the assessee is unable to point out any mistake or error from the order of the Pr.CIT, dated 28/03/2018. 4. Per contra, ld. Departmental Representative strongly supported the order passed by the Pr.CIT. 5. We have heard both the sides and gone through the details filed by the assessee and also the assessment order. From the assessment order it is very clear that the Assessing Officer has not at all examined the claim of exemption made by the assessee in respect of 54F of the Act and without making a detailed enquiry simply allowed the claim. Thus, we are of the opinion that the Pr.CIT rightly exercised his powers vested with him u/sec. 263 of the Act and set aside the order passed by the Assessing Officer. We find no reason to interfere with the order passed by the Pr.CIT. Thus, this appeal filed by the assessee is dismissed. 6. In the result, appeal filed by the assessee is dismissed. Order Pronounced in open Court on this 04th day of July, 2019.
Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated: 04th July, 2019. vr/-
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Copy to: 1. The Assessee – Smt. Chinnam Sreevalli, Plot No. 211, 6th Canara Bank Layout, Main Road, Kodigehalli, Bangalore. 2. The Revenue – ITO, Ward-2, Eluru. 3. The Pr.CIT, Rajahmundry. 4. The D.R., Visakhapatnam. 5. Guard file. By order
(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.