I.T.A. No. 705/Hyd/2014, (Assessment Year: 2009-2010). Case: Padmaja Gavini Vs The Income Tax Officer. ITAT (Income Tax Appellate Tribunal)
| Case Number | I.T.A. No. 705/Hyd/2014, (Assessment Year: 2009-2010) |
| Judges | P.M. Jagtap, Member (A) and Asha Vijayaraghavan, Member (J) |
| Issue | Income Tax Act, 1961 - Sections 143(3), 148, 2(14), 263, 54, 54F |
| Judgement Date | December 24, 2014 |
| Court | ITAT (Income Tax Appellate Tribunal) |
Order:
Asha Vijayaraghavan, Member (J) (ITAT Hyderabad 'A' Bench)
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This appeal by the assessee is directed against the order u/s. 263 passed by the CIT-II, Hyderabad dated 18.3.2014 for A.Y. 2009-10.
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The assessee filed her return of income for the AY 2009-10 on 22.03.2010 admitting total income of Rs. 1,82,630. Assessment u/s. 143(3) of the Income-tax Act, 1961 was completed on 01.12.2011 accepting the income returned. A notice dated 28.01.2014 was given u/s. 263 of the Act to the assessee wherein the error in the assessment order was pointed out by the CIT which is as under:
"3. On verification of assessment records, it is noticed that the assessee had purchased a semi-furnished flat at Yousufguda, Hyderabad admeasuring 1536 S.ft. flat including car parking area and undivided share of land for a consideration of Rs. 6,81,000/- on 29.05.2005. Later, the assessee had entered into an agreement with. M/s. Vijay Krishna Promoters for complete development of flat for a consideration of Rs. 2,46,000/-. Thereafter, the assessee had sold the flat on 17.12.2008 for a consideration of Rs. 28,00,000/-. The assessee also received an amount of Rs. 23,50,000/- apart from the above Rs. 28,00,000/- vide an agreement towards sale of fixtures and fittings. It was observed from the computation of income, that the assessee had worked out NIL income from long term capital gains claiming exemption u/s. 54. However, the consideration of Rs. 23,50,000/- received towards sale of fixtures and fittings and interior decoration under separate agreement is not eligible for deduction u/s. 54."
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In response to the notice, Sri V. Srinath, CA appeared before the CIT on 21.02.2014 and 26.02.2014 and filed written submissions as follows:
From a careful reading of the said letter, it is observed that the aforesaid conclusion was arrived at on the presumption that the sale proceeds amounting to Rs. 23.50 lakhs received from the sale of Fixtures, electrical fittings, interiors and other amenities/facilities forming integral pan of the residential flat sold by the assessee do not qualify for reinvestment exemption claimed by her under Section 54 of the Income-tax Act, 1961.
At the outset, we respectfully submit that the assessee filed her return of income for the Assessment year 2009-10 on 22-03-2010 which was taken up for scrutiny proceedings. During the course of the assessment proceedings the assessee furnished all the documentary evidences in support of the claims...
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