Shri Pradip Kumar Basu, Kolkata v. I.T.O.,Ward-26(2), Kolkata

ITA 2122/KOL/2019 | 2014-2015
Pronouncement Date: 10-05-2021 | Result: Dismissed

Appeal Details

RSA Number 212223514 RSA 2019
Assessee PAN AGEPB8361P
Bench Kolkata
Appeal Number ITA 2122/KOL/2019
Duration Of Justice 1 year(s) 7 month(s) 27 day(s)
Appellant Shri Pradip Kumar Basu, Kolkata
Respondent I.T.O.,Ward-26(2), Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 10-05-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 10-05-2021
Date Of Final Hearing 10-05-2021
Next Hearing Date 10-05-2021
Last Hearing Date 27-07-2020
First Hearing Date 17-02-2021
Assessment Year 2014-2015
Appeal Filed On 13-09-2019
Judgment Text
ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A(SMC) BENCH KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI P.M. JAGTAP VICE-PRESIDENT I.T.A. NO. 2122/KOL/2019 ASSESSMENT YEAR: 2014-2015 SRI PRADIP KUMAR BASU ............................. .........................APPELLANT FLAT NO. D/101 MAYFAIR ETERNITY ATLAS MORE 2596 N.S.C. BOSE ROAD KOLKATA-700145 [PAN:AGEPB8361P] -VS.- INCOME TAX OFFICER ................................ ............................RESPONDENT WARD-26(2) KOLKATA AAYAKAR BHAWAN DAKSHIN 2. GARIAHAT ROAD KOLKATA-700068 APPEARANCES BY: SHRI JAHIRUDDIN MUNSI A.R. APPEARED ON BEHALF OF THE ASSESSEE SHRI JAYANTA KHANRA JCIT APPEARED ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : MAY 10 2021 DATE OF PRONOUNCING THE ORDER : MAY 10 2021 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-7 KOLKATA DATED 17.01.2018 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE ADDITION OF RS.6 14 674/- MADE BY THE ASSESSING OFFICER AND CON FIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF LONG-TERM CAPITAL GAIN. 2. AT THE OUTSET IT IS NOTED THAT THERE IS A DELAY OF 484 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE T HE TRIBUNAL. IN THIS REGARD THE ASSESSEE HAS FILED AN APPLICATION SEEKI NG CONDONATION OF THE SAID DELAY AND KEEPING IN VIEW THE REASONS GIVEN TH EREIN I AM SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE DELAY OF 484 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBU NAL. EVEN THE LD. D.R. HAS ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 2 NOT RAISED ANY OBJECTION IN THIS REGARD. THE DELAY OF 484 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TR IBUNAL IS ACCORDINGLY CONDONED AND THE APPEAL OF THE ASSESSEE IS BEING DI SPOSED OF ON MERIT. 3. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION O N 04.12.2014 DECLARING TOTAL INCOME OF RS.5 96 040/-. IN THE SAI D RETURN LONG-TERM CAPITAL GAIN ARISING FOR SALE OF RESIDENTIAL PROPER TY AMOUNTING TO RS.6 14 674/- WAS DECLARED BY THE ASSESSEE AND THE SAME WAS ADJUSTED AGAINST THE LOSS OF RS.8 64 542/- ARISING FROM THE COMMODITY SHARE TRANSACTION. SINCE THE LOSS FROM COMMODITY SHARE TR ANSACTION WAS NOT ELIGIBLE FOR ADJUSTMENT AGAINST THE LONG-TERM CAPIT AL GAIN ARISING FROM THE SALE OF RESIDENTIAL PROPERTY THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE FOR SUCH ADJUSTMENT AND MADE AN ADDITI ON OF RS.6 14 674/- TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF L ONG-TERM CAPITAL GAIN IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 07.11.2016. 4. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3) AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLATE PROCEE DINGS BEFORE THE LD. CIT(APPEALS) A NEW CLAIM WAS MADE BY THE ASSESSEE SEEKING EXEMPTION OF LONG-TERM CAPITAL GAIN ON ACCOUNT OF INVESTMENT MADE IN LONG-TERM CAPITAL GAIN BOND BY VIRTUE OF SECTION 54EC OF THE ACT. THE LD. CIT(APPEALS) HOWEVER FOUND THAT THE SAID INVESTME NT WAS MADE BY THE ASSESSEE AFTER A PERIOD OF SIX MONTHS STIPULATED IN THE RELEVANT PROVISION AND THE ASSESSEE THEREFORE WAS NOT ENTITLED FOR E XEMPTION UNDER SECTION 54EC OF THE ACT ON ACCOUNT OF LONG-TERM CAPITAL GAI N. HE THEREFORE DISALLOWED THE CLAIM OF THE ASSESSEE AND CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF LONG-TERM CAPIT AL GAIN. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS) THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 3 5. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERV ED THAT THE LONG-TERM CAPITAL GAIN OF RS.6 14 674/- HAD ARISEN TO THE ASS ESSEE AS A RESULT OF RESIDENTIAL PROPERTY SOLD ON 12.06.2013 AND IN ORDE R TO CLAIM EXEMPTION ON ACCOUNT OF LONG-TERM CAPITAL GAIN UNDER SECTION 54EC OF THE ACT THE ASSESSEE WAS REQUIRED TO MAKE INVESTMENT IN THE ELI GIBLE BONDS WITHIN SIX MONTHS FROM THE DATE OF TRANSFER OF THE LONG-TERM C APITAL ASSET I.E. 12.12.2013. SINCE THE INVESTMENT IN THE ELIGIBLE BO NDS WAS ADMITTEDLY MADE BY THE ASSESSEE ON 21.01.2014 I.E. AFTER THE P ERIOD STIPULATED IN SECTION 54EC I FIND MYSELF IN AGREEMENT WITH THE L D. CIT(APPEALS) THAT THE ASSESSEE IS NOT ENTITLED FOR THE EXEMPTION UNDE R SECTION 54EC. EVEN THE LD. COUNSEL FOR THE ASSESSEE HAS NOT BEEN ABLE TO RAISE ANY MATERIAL CONTENTION TO DISPUTE THIS POSITION. HE HAS ONLY SU BMITTED THAT THE ASSESSEE WANTED TO INVEST THE LONG-TERM CAPITAL GAI N IN PURCHASE OF ANOTHER RESIDENTIAL PROPERTY AND UNABLE TO FIND THE SUITABLE PROPERTY HE FINALLY INVESTED THE AMOUNT IN LONG-TERM CAPITAL GA IN BONDS ON 21.01.2020. IN MY OPINION THIS ASPECT IS IRRELEVAN T TO DECIDE THE ELIGIBILITY OF ASSESSEE FOR EXEMPTION UNDER SECTION 54EC WHICH SPECIFICALLY PROVIDES THAT THE INVESTMENT IN ELIGIB LE BONDS IS REQUIRED TO BE MADE BY THE ASSESSEE WITHIN A PERIOD OF SIX MONT HS FROM THE DATE OF TRANSFER OF THE LONG-TERM CAPITAL ASSET IN ORDER TO CLAIM THE EXEMPTION ON ACCOUNT OF LONG-TERM CAPITAL GAIN. I THEREFORE FI ND NO MERIT IN THIS APPEAL OF THE ASSESSEE AND DISMISS THE SAME. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 10 2021. SD/- (P.M. JAGTAP) VICE-PRESIDENT KOLKATA THE 10 TH DAY OF MAY 2021 ITA NO. 2122/KOL/2019 A.Y. 20 14-2015 SRI PRADIP KUMAR BASU 4 COPIES TO : (1) SRI PRADIP KUMAR BASU FLAT NO. D/101 MAYFAIR ETERNITY ATLAS MORE 2596 N.S.C. BOSE ROAD KOLKATA-700145 (2) INCOME TAX OFFICER WARD-26(2) KOLKATA AAYAKAR BHAWAN DAKSHIN 2. GARIAHAT ROAD KOLKATA-700068 (3) COMMISSIONER OF INCOME TAX (APPEALS)-7 KOLKA TA (4) COMMISSIONER OF INCOME TAX (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES KOLKATA LAHA/SR. P.S.