MRS. GITA SUDDE SURIE,JAMSHEDPUR vs. ITO, JAMSHEDPUR

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ITA 36/RAN/2016Status: DisposedITAT Ranchi28 February 2018AY 2011-123 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that if the transfer date was indeed March 5, 2010, the capital gain would be taxable in Assessment Year 2010-11, not 2011-12. Therefore, the assessment order for AY 2011-12 was considered bad in law due to jurisdictional error.

What were the facts?

The assessee, a US citizen, sold an immovable property and claimed exemption under Section 54EC. The Assessing Officer considered the date of transfer to be March 5, 2010, based on part performance and receipt of consideration, making the investment in bonds beyond the allowed period. The CIT(Appeals) upheld this.

What were the issues?

The primary issue was whether the assessment for AY 2011-12 was valid when the capital gain might have been taxable in the preceding year. The Tribunal did not delve into the Section 54EC exemption due to the jurisdictional defect.

Which sections of the Income-tax Act were involved?

Section 54EC,Section 2(47)(v)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: Shri J. Sudhakar Reddy & Shri S.S. Viswanethra Ravi

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI Before Shri J. Sudhakar Reddy, Accountant Member and Shri S.S. Viswanethra Ravi, Judicial Member I.T.A. No. 36/Ran/2016 Assessment Year: 2011-12 Mrs. Gita Sudde Surie...………………………………………………………….........................Appellant 20, Park Road, Northern Town, Bistupur, Jamshedpur -831 001. [PAN: CUDPS 9942 Q] Income Tax Officer.................................…………………………………..........................Respondent Ward No. 1(4), Jamshedpur. Appearances by: Shri Devesh Poddar, Advocate appearing on behalf of the Assessee. Shri P.K. Mondal, JCIT appearing on behalf of the Revenue. Date of concluding the hearing : February 23, 2018 Date of pronouncing the order : February 28, 2018 ORDER Per J. Sudhakar Reddy, AM

This is an appeal filed by the assessee directed against the order of Ld. CIT(Appeals) Jamshedpur dated 27.11.2015 for the assessment year 2011-12.

2.

The assessee is an individual. She is a citizen of USA. She sold immovable property along with co-owners by way of execution of a sale deed on 17.05.2010.

3.

The entire sale proceeds were invested in the bonds of National Highway Authority and exemption was claimed under section 54EC of the Income Tax Act. The Assessing Officer found that the assessee had entered into an agreement of sale on 5th March, 2010 and had received the entire consideration and handed over possession of the

2 I.T.A. Nos. 36/Ran/2016 Assessment Year: 2011-12 Mrs. Gita Sudde Surie property on that date. Thus he was of the opinion that there was part performance of the contract and consequently the date of transfer was 5th March, 2010 as possession was handed over by the assessee on that date after receiving full consideration. As the investment in National Highway Authority of India Bonds was made on 08.10.2010 which is beyond 6 months from the date of transfer, the learned Assessing Officer denied exemption under 54EC of the Act. On appeal, the first appellate authority agreed with the A.O. Further, aggrieved the assessee is before us.

4.

After hearing rival contentions, we find that the conclusion of the revenue authorities is that the date of transfer of property is 5th March, 2010, as per the definition of transfer under section 2(47)(v) of the Act. If so the assessment year of taxability of this capital gain would be assessment year 2010-11 and not assessment year 2011-12. As this is jurisdictional issue and as the income itself is not taxable in this particular assessment year, we have to necessarily hold that the assessment order determining capital gain during the year is bad in law. Hence the same is deleted. Hence we need not go into the issue of exemption u/s 54EC of the Act.

5.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 28th February, 2018.

Sd/- Sd/- S.S. Viswanethra Ravi J. Sudhakar Reddy JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated: 28/02/2018

3 I.T.A. Nos. 36/Ran/2016 Assessment Year: 2011-12 Mrs. Gita Sudde Surie Biswajit, Sr. PS

Copy of order forwarded to: 1. Mrs. Gita Sudde Surie, 20, Park Road, Northern Town, Bistupur, Jamshedpur – 831 001.

2.

ITO, Ward 1(4), Jamshedpur.

3.

The CIT(A)

4.

The CIT

5.

DR True Copy, By order,

Sr. P.S. / H.O.O. ITAT, Ranchi

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