Income Tax Appellate Tribunal - Chennai
Sridhar Rajan , Chennai vs Assessee on 22 January, 2016
आयकर अपील य अ
धकरण, 'बी'' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
'B' BENCH, CHENNAI
ी चं पूजार ,लेखा सद य एवं ीजी. पवन कुमार, या"यकसद यकेसम#
BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER
AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER
आयकर अपील सं./I.T.A. No. 2072/Mds/2015
"नधा$रण वष$ /Assessment year : 2012-2013
Shri. Sridhar Rajan Vs. The Income Tax Officer,
AE-116, New No.AE-278, International Taxation-II(1)
Golden Edelweiss, Chennai.
Shanthi Colony, Anna Nagar,
Chennai 600 040.
[PAN DVLPS 6838B]
( यथ /Respondent) ( यथ /Respondent)
अपीलाथ' क( ओर से/ Appellant by : Shri. V.C. Vijayaraghavan, Advocate
*+यथ' क( ओर से /Respondent by : Shri. A.B. Koli, IRS, JCIT.
सन
ु वाई क( तार ख/Date of Hearing : 12-01-2016
घोषणा क( तार ख /Date of Pronouncement : 22-01-2016
आदे श / O R D E R
PER G. PAVAN KUMAR, JUDICIAL MEMBER:
The appeal filed by the assessee is directed against the order of the Commissioner of Income-tax (Appeals)-16, Chennai in ITA No.50/CIT(A)16/14-15, Dt.14.09.2015 for the assessment year 2012-2013 passed u/s.143(3) and 250 of the Income Tax Act, 1961.
:- 2 -: ITA No.2072/Mds/2015
2. The only issue raised by the assessee before the Tribunal in respect of investment of Long Term Capital Gains u/s.54EC of the Act in Capital Gain bonds falling in two financial years and within six months from the date of transfer of property.
3. The Brief facts of the case are that the assessee is an individual and is Non Resident. For the assessment year 2012-2013 the assessee filed return of income on 26.07.2012 admitting total income of >53,622/-. Subsequently, the case was selected for scrutiny and notices u/s.143(2) and 142(1) of the Act alongwith questionnaire were issued to the assessee. In compliance to the notices, the ld. Authorised Representative of the assessee appeared from time to time and submitted details. The Assessing Officer after hearing the submissions and based on information on record found that assessee has sold House site at Tambaram, vide Regd. Sale Deed dated 16.02.2012 for a consideration of >1 Crore and the assessee has made investment u/Sec.54 EC of the Act in Capital Gains Bonds of Rural Electrification Corporation and NHAI total aggregating to >91,00,000/. On perusal of the investments, the ld.AR issued show cause notice and in compliance submitted details of investment made in two Financial Year. The Assessing Officer found that the assessee has invested Long term capital gain to claim exemption u/s.54EC and concluded that investment in Capital Gain Bonds by an assessee :- 3 -: ITA No.2072/Mds/2015 during any Financial year should not exceed Fifty lakhs. In view of investment made in two Financial years, the ld. Assessing Officer has restricted >50,00,000/- to one Financial Year and made an additions of >41,00,000/- and raised demand. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals).
4. In the appellate proceedings, the assessee has reiterated his submissions made before the Assessing Officer that the investments in Capital Gain bonds within the period of six months from date of transfer eligible for exemption u/sec. 54 of the Act and relied on High Court decision and various Tribunal orders. The Commissioner of Income Tax (Appeals) passed order differing from the ratio of ITAT and High Court and concluded that assessee gets only benefit of >50,00,00/- in one assessment year and the balance the Assessing Officer has rightly disallowed and upheld the order of the Assessing Officer. Aggrieved by the order of the Commissioner of Income Tax (Appeals), the assessee assailed an appeal before the Tribunal.
5. Before us, the ld.AR submitted that the amendment to Sec.54EC is a prospective in nature effective from 01.04.2015. As far as the assessee is concerned the law prevailing on the date of :- 4 -: ITA No.2072/Mds/2015 transaction shall apply, the ld. Authorised Representative relied on the provisions of Sec.54EC as under:-
"Provided that the investment made on or after 1st April of 2007 in the long term specified asset by an assessee ''during any financial year'' does not exceed 50 lakhs rupees''.
and supported with judicial decisions of the Madras High Court in the case of CIT vs. C. Jaichander 370 ITR 579 (Mad) and CIT vs. Coramandel Industries Ltd 370 ITR 586 (Mad) also relied on various orders of the Tribunal and pleaded for deletion of addition.
6. Contra, the ld. Departmental Representative relied on the orders of the lower authorities and contested the ground.
7. We heard the rival submissions of both the parties, perused the material on record and also judicial citations quoted. The assessee has invested in long term capital gains within six months from the date of transfer u/s.54EC of the Act in Rural Electrification Corporation and National Highway Authority of India capital gain bonds and complied with the provisions and there is no dispute about the investment. The Assessing Officer tried to make a distinction of provisions for restricting investment of >50,00,000/- only in one financial year. The assessee has invested in two installments falling in two financial years and availed tax exemption. We after considering the apparent facts and also respectfully rely on the jurisdictional High Court in the cases of C. :- 5 -: ITA No.2072/Mds/2015 Jaichander 370 ITR 579 (Supra) and CIT vs. Coramandel Industries Ltd 370 ITR 586 (Supra) setaside the order of the Commissioner of Income Tax (Appeals) and direct the Assessing Officer to delete the addition and allow the ground of the assessee.
8. In the result, the appeal of the assessee in ITA No.2072/Mds/2015 is allowed.
Order pronounced on Friday, the 22nd day of January, 2016, at Chennai.
Sd/- Sd/-
(चं पज
ू ार ) (जी. पवन कुमार)
(CHANDRA POOJARI) (G. PAVAN KUMAR)
लेखा सद य /ACCOUNTANT MEMBER या यक सद य/JUDICIAL MEMBER
चे नई/Chennai
/दनांक/Dated:22.01.2016
KV
आदे श क( *"त2ल3प अ4े3षत/Copy to:
1. अपीलाथ'/Appellant 3. आयकर आयु5त (अपील)/CIT(A) 5. 3वभागीय *"त"न
ध/DR
2. *+यथ'/Respondent 4. आयकर आयु5त/CIT 6. गाड$ फाईल/GF