Deepak Marwah, New Delhi v. JCIT, Circle-32(1), New Delhi

ITA 4274/DEL/2018 | 2013-2014
Pronouncement Date: 31-08-2021 | Result: Partly Allowed

Appeal Details

RSA Number 427420114 RSA 2018
Assessee PAN AHUPM9221E
Bench Delhi
Appeal Number ITA 4274/DEL/2018
Duration Of Justice 3 year(s) 2 month(s) 26 day(s)
Appellant Deepak Marwah, New Delhi
Respondent JCIT, Circle-32(1), New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 31-08-2021
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 31-08-2021
Assessment Year 2013-2014
Appeal Filed On 04-06-2018
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI B BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING ) BEFORE SHRI KUL BHARAT JUDICIAL MEMBER & DR.B.R.R.KUMAR ACCOUNTANT MEMBER ITA NO.4274/DEL/2018 ASSESSMENT YEAR : 2013-14 DEEPAK M ARWAH H FARM NO.5C WEST CIRCULAR ROAD DERA MANDI GREENS NEW DELHI-110074 PAN-AHUPM9221E VS JCIT CIRCLE-32(1) NEW DELHI. APPELLANT RESPONDENT APPELLANT BY SH. SANJAY NATH CA RESPONDENT BY MS. ALKA GAUTAM SR.DR DATE OF HEARING 23.08.2021 DATE OF PRONOUNCEMENT 31 .08.2021 ORDER PER KUL BHARAT JM : THIS APPEAL FILED BY THE ASSESSEE PERTAINING TO ASS ESSMENT YEAR 2013-14 IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-11 NEW DELHI DATED 03.04.2018. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL :- 1. THE ACTION OF THE CIT(A) IN UPHOLDING THE ASSES SMENT ORDER PASSED BY THE JCIT RANGE-32 NEW DELHI IS UNJUST ILLEGAL ARBITRARY ILLUSORY AND THE ORDER PASSED ON PROTECTIVE BASIS DESERVES TO BE QUASHED. 2. THE ACTION OF THE LOWER AUTHORITIES IN HOLDING THAT THE ASSESSMENT U/S 143(3) ON PROTECTIVE BASIS IS LEGAL AND VALID I S UNJUST ILLEGAL ARBITRARY ILLUSORY AND THE ASSESSMENT DESERVES TO BE QUASHED. 3. THE ACTION OF THE LOWER AUTHORITIES IN NOT ACCEP TING THE LONG TERM CAPITAL GAINS DECLARED BY THE ASSESSEE IN THE RELEV ANT ASSESSMENT YEAR AT ITA NO.4274/DEL/2018 ASSESSMENT YEAR : 2013-14 2 | P A GE RS. 1 65 96 121/- BUT HOLDING THAT THIS IS TAXABLE IN AY 2013-14 IS UNJUST ILLEGAL ARBITRARY ILLUSORY AND THE CAPITAL GAINS MAY BE HELD TO BE TAXABLE IN THIS YEAR ALONE. 4. THE ACTION OF THE LOWER AUTHORITIES IN HOLDING T HAT THE CAPITAL GAINS DECLARED BY THE ASSESSEE AT RS. 1 65 96 121/- IS TA XABLE IN A.Y. 2012-13 AND NOT IN A.Y. 2013-14 IS UNJUST ILLEGAL ARBITRA RY ILLUSORY AND THE ADDITION DESERVES TO BE DELETED. 5. THE ACTION OF THE LOWER AUTHORITIES IN SUBJECTIN G TO TAX A SUM OF RS. 4 38 72 723/ - AS LONG TERM CAPITAL GAINS ON PROTEC TIVE BASIS IS UNJUST ILLEGAL ARBITRARY ILLUSORY AND THIS ADDITION DE SERVES TO BE DELETED IN FULL. 6. THAT IN THE ALTERNATE AND WITHOUT PREJUDICE TO T HE ABOVE THE ACTION OF THE LOWER AUTHORITIES IN DISALLOWING THE REBATE OF RS. 2 72 76 602/ - CLAIMED U/S 54 IS UNJUST ILLEGAL ARBITRARY ILLUS ORY AND THIS ADDITION DESERVES TO BE DELETED IN FULL. 7. THAT HIS ACTION IN HOLDING THAT THE INVESTMENT M ADE BY THE ASSESSEE IN A RESIDENTIAL HOUSE IS NOT COVERED U/S 54 AND TH ERE BY DISALLOWING THE DEDUCTION IS ILLEGAL UNJUST ARBITRARY ILLUSORY A ND THE' SAME MAY BE DIRECTED TO BE ALLOWED 8. APPELLANT CRAVES LEAVE TO ADD ALTER MODIFY OR DELETE ANY GROUND OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF T HE APPEAL. 2. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THA T RETURN DECLARING INCOME OF RS.2 24 91 960/- WAS ELECTRONICALLY FILED ON 31.07.2013. SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY UN DER CASS AND ASSESSMENT WAS FRAMED U/S 143(3) OF THE INCOME TAX ACT 1961 ( THE ACT) VIDE ORDER DATED 31.03.2016. WHILE FRAMING THE ASSESSMENT THE ASSE SSING OFFICER NOTICED THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE H AS CLAIMED DEDUCTION U/S ITA NO.4274/DEL/2018 ASSESSMENT YEAR : 2013-14 3 | P A GE 54F OF THE ACT AGAINST LONG TERM CAPITAL GAIN. THE ASSESSEE HAS DISCLOSED THE CAPITAL GAIN FOR THE PROPERTY WHICH WAS SOLD DURING THE FINANCIAL YEAR 2011-12 RELEVANT TO ASSESSMENT YEAR 2012-13. THE ASSESSI NG OFFICER THEREFORE RE- OPENED THE CASE FOR ASSESSMENT YEAR 2012-13. FURTH ER THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE DEDUCTION U/S 54/54F OF THE ACT AND MADE ADDITION OF RS.2 72 76 602/-. THE ASSESSING OFFICE R MADE ASSESSMENT ON PROTECTIVE BASIS AND RECORDED THAT SUBSTANTIAL ASSE SSMENT WILL BE MADE IN ASSESSMENT YEAR 2012-13 FOR WHICH RE-ASSESSMENT PRO CEEDINGS HAVE ALREADY BEEN INITIATED. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT IN THE YEAR UNDER CONSIDERATION THE ADDITION WAS MADE ON THE P ROTECTIVE BASIS ONLY. HE SUBMITTED THAT THE ASSESSMENT OF INCOME OF THE ASS ESSEE FOR ASSESSMENT YEAR 2012-13 ON SUBSTANTIVE BASIS HAS ALREADY BEEN COMPL ETED. THE INCOME OF THE ASSESSEE HAS BEEN ASSESSED AND DUE TAXES HAVE BEEN PAID. THEREFORE THE ADDITION MADE IN THIS YEAR DOES NOT SURVIVE. 4. LD. SR. DR COULD NOT CONTROVERT THIS FACT THAT T HE INCOME HAS ALREADY BEEN ASSESSED ON SUBSTANTIVE BASIS IN ASSESSMENT YE AR 2012-13. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE ADDITION WAS MADE ON THE PROTECTIVE BASIS. IT IS STATED BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSMENT HAS BEEN MADE ON SUBSTANTIVE BA SIS IN ASSESSMENT YEAR 2012-13 WHICH IS NOT CONTROVERTED BY REVENUE. WE THEREFORE DIRECT THE ITA NO.4274/DEL/2018 ASSESSMENT YEAR : 2013-14 4 | P A GE ASSESSING OFFICER TO DELETE THE ADDITION MADE IN TH IS YEAR ON PROTECTIVE BASIS AFTER VERIFYING THAT THE INCOME OF THE ASSESSEE HAS BEEN ASSESSED TO TAX IN THE CORRECT ASSESSMENT YEAR I.E.2012-13. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED IN TERMS AS INDICATE ABOVE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ABOVE DECISION WAS PRONOUNCED ON CONCLUSION OF VIRT UAL HEARING IN THE PRESENCE OF BOTH THE PARTIES ON 31 ST AUGUST 2021. SD/- SD/- (DR. B.R.R.KUMAR) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIA L MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI