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Income Tax Appellate Tribunal, BANGALORE BENCHES “ C ” BENCH: BANGALORE
Before: SHRI A.K. GARODIA & SHRI PAVAN KUMAR GADALE
O R D E R
PER SHRI PAVAN KUMAR GADALE, JM :
The assessee has filed an appeal against the order of learned Commissioner of Income Tax (Appeals)-10, Bangalore passed under Section 143(3) and 250 of the Income Tax Act, 1961.
The assessee has raised the following grounds of appeal :
3. The Brief facts of the case are that the assessee has filed Return of Income on 17.04.2013 with a total income of Rs.5,69,020. Subsequently, the case was selected for scrutiny under CASS and Notice under Section 143(2) of the Act was issued. In compliance the learned Authorised Representative of the assessee appeared from time to time before the Assessing Officer and filed the information in respect of Bank Account, acquisition and purchase of the property on 20.10.2014, and further the revised computation of income was filed declaring income from Short Term Capital Gains (STCG) whereas the Assessing Officer required the assessee to furnish information on construction of house property along with copy of Capital GainAccount. The assessee has sold the ancestral property along with wife and two daughters for a consideration of Rs.3,39,00,000, and the said property was inherited on death of his father. The sale consideration of Rs.3.39 Crores was deposited in the Capital Gain Account Scheme on 19.12.2011. Subsequently, the money was withdrawn on 25.4.2012, and was deposited in three accounts of Rs.75 lakhs each and one account of Rs.72 lakhs. Subsequently, the assessee has withdrawn the said amount on 8.3.2013 and purchased property at Koramangala for a consideration of Rs.2.15 Crores. The contention of ld. AR that House Property out of the capital gains account amount within three years but could not substantiate with regard to completion of construction of the House whereas the Assessing Officer based on report of the Inspector observed that construction of House is not completed hence denied the exemption under Section 54F of the Act and assessed the income of Rs.3,17,00,000 and passed under Section 143(3) of the Act Dt.31.3.2015. Aggrieved by the order, the assessee has filed an appeal with the CIT(Appeals). Whereas the CIT(Appeals) has confirmed the order of the Assessing Officer and dismissed the appeal. Aggrieved by the CIT (Appeals) order, the assessee has filed an appeal with the Tribunal.
4. At the time of hearing, the learned Authorised Representative submitted that the CIT(Appeals) has erred in confirming the addition irrespective of the fact that the assessee is eligible for exemption under Section 54F of the Act. The learned Authorised Representative submitted Paper Book and supporting evidences of deposit of Long Term Capital Gains in the Capital Gains Account Scheme and explained that the property was sold on 12.12.2011 in the A.Y. 2012-13 and whereas the assessee has 15.3.2013. Further to substantiate that the House construction is complete, the assessee made an application to the Executive Engineer, Revenue Inspector, BBMP, Koramangala to issue completion certificate. Learned Authorised Representative also supported the case with the copy of confirmations and capital gains account scheme certificate and prayed for granting of exemption under Section 54F of the Act. Contra, the ld. Departmental Representative relied on the orders of the CIT (Appeals).
We heard the rival contentions and perused the material on record. The sole matrix of the disputed issue is on granting of exemption under Section 54F of the Act. The learned Authorised Representative has vehemently argued that the assessee has complied with the conditions of deposits in the Capital Gains Account Scheme and performed House warming ceremony on 3.10.2014 duly supported with the copy of Invitation Card at page 95 of the Paper Book and also letters filed for obtaining the sanction including leveling and construction of compound wall. On perusal of the CIT(Appeals) order, we find that the ld. CIT(Appeals) has only dealt on the issue that the completion of the House Property should be before 12.12.2014 i.e. ;within three years from date of the sale of property. We found the assessee has filed substantive material on compliance of the stipulated conditions before 12.12.2014. The learned Authorised Representative demonstrated with the copy of the letter filed with the Executive Engineer for issue of completion Certificate application of Electric connection and Assessment of House Tax, Capital Gains Account Schemes and details of leveling of the compound wall and other letters in respect of Annual Payment of tax. We found the CIT (Appeals) has passed the order overlooking the vital information filed by the assessee in respect of completion of construction of House and accordingly we set aside the order of the CIT(Appeals) and restore back the entire disputed issue to the file of CIT(Appeals) to adjudicate afresh to consider the material filed by the assessee in the Tribunal and shall pass a speaking and reasoned order. Nevertheless to mention that the assessee shall be afforded adequate opportunity of hearing and shall co-operate in submitting the information for early disposal of the appeal and allow the grounds of appeal
of the assessee for statistical purposes.
6. In the result, the assessee's appeal is allowed for statistical purposes. Order pronounced in the open court on 7th Aug., 2019.