Income Tax Appellate Tribunal - Chandigarh
Sh. Vinod Jindal, Mandi Dabwali vs Ito, W-3, Sirsa on 31 May, 2019
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "एकल सद यीय', च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH
'SMC' CHANDIGARH
ीमती दवा संह, या!यक सद य
BEFORE: SMT. DIVA SINGH, JM
आयकर अपील सं./ ITA No. 1440/CHD/2018
नधा रण वष / Assessment Year : 2012-13
Shri Vinod Jindal, बनाम The ITO,
C/o Jindal Roadlines, VS
Ward-3,
G.T.Road, Mandi Dabwali, Sirsa.
Sirsa.
थायी लेखा सं./PAN No. : ACEPK9943L
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by : Shri Ashok Goyal, Proxy Counsel for
Shri Parikshit Aggarwal
राज व क ओर से/ Revenue by : Shri Manjit Singh, CIT-DR
ु वाई क तार#ख/Date of Hearing
सन : 14.05.2019
उदघोषणा क तार#ख/Date of Pronouncement : 31.05. 2019
आदे श/ORDER
The present appeal has been filed by the assessee assailing the correctness of the order dated 13/09/2018 of CIT(A) Hissar pertaining to 2011-12 assessment year on the following grounds :
"1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) in Appeal No. 102/SRS/2014-15 dated 13.09.2018 has erred in passing that order in contravention of the provisions of S. 250(6) of the Income Tax Act, 1961.
2. That on law, facts and circumstances of the case, Worthy CIT(A) has erred in confirming the action of Ld. AO in making disallowance of Rs 7,62,076/-as Long term capital loss on account of sale of dismantled residue of building from indexed cost of acquisition. By holding that no transfer of such building took place even when it is quite evident from the records that the school building existed on the said land and was demolished as it became unsafe for any use.
3. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.
ITA 1440/CHD/2018 A.Y. 2012-13 Page 2 of 3
2. At the time of hearing, an adjournment application was moved on behalf of the assessee. Mr. Ashok Goyal, CA appeared as proxy counsel on behalf of the assessee's counsel. However, considering the material available on record, it was deemed appropriate to proceed with the present appeal ex-parte qua the assessee appellant on merit after hearing the Ld. Sr. DR.
3. The relevant facts of the case are that the assessing officer in the course of the assessment proceedings disallowed Rs. 6,30,410/- claimed as cost of indexation on school building claims holding that no transfer of such building took place. The assessee carried the issue in appeal before the CIT(A). The arguments advanced on behalf the assessee are set out in para 5.4.1 at page 12 of the impugned order. For ready reference these are reproduced hereunder :
"5.4.1 During the course of appellate proceeding the assessee submitted that the entire indexed cost of School Building in which appellant was holding l/3rd Share since financial year 1999-2000. The l/3rd share of Construction cost Rs. 3,59,379.60 have been shown in Balance Sheet filed with I. T. Return of that year with I. T. Department vide Ack. No. 7734 an 29-10-1999 with The I.T.O., Ward-2, Sirsa. The said building was given on rent to M/s. Sutlej Public School since 01-04-1999 till 31-03-2011. A Public school was running in the said building. The appellant had declared his share of rental income from that school in his return regularly for the period under consideration. The roof of said building was made of Stone slabs (Pathar ki Pattion ki) and Stone slabs had cracked and started broken'from many places as such running of School there becomes totally unsafe as such it was got vacated and building was dismantled. (Letter from Said School Management is enclosed herewith). Value of empty land and/or land with building was same because the building was in deteriorated condition, However assessee had recovered the Value if Scrap/Malba (l/3rd Share) amounting to Rs. 41,666/- in addition to sale proceeds of land".
3.1. However, these arguments were dismissed holding as under :
5.4.2 The submission made by the appellant is carefully considered and found that the assessee is not in position to prove the genuineness of this claim and documents related to cost of construction on the land and change in use of land which is shown as agriculture land in the sale deed. Therefore, the addition made on account of disallowance Long Term Capital Gain is hereby sustained. The ground of appeal is dismissed.
4. Aggrieved by this, the assessee is in appeal before the ITAT.
5. On a reading of the material available on record, it is seen that the conclusions are arrived at ignoring the past history demonstrating that a building was in existence wherefrom a public school was running and rent was being paid ITA 1440/CHD/2018 A.Y. 2012-13 Page 3 of 3 by M/s. Sutlej Public School since 01-04-1999 till 31-03-2011, facts are shown to have been argued. Why these facts remain unaddressed. The Ld. CIT-DR was unable to address. To my understanding, the facts on record which consisted of the past history of the assessee on the said issue were relevant facts and they ought to have been addressed. Even if the assessee has not retained the receipts of sale of Malba etc. the fact that the school was in existence was a fact which could have been established by carrying out a local inquiry etc. Accordingly, the conclusion arrived at cannot be sustained. In view thereof, the adjournment application of the assessee was rejected and it was directed that the impugned order shall be set-aside back to the file of the CIT(A) with the direction to pass a speaking order in accordance with law. It is hoped that the opportunity so provided is utilised by the assessee in good faith by making full and proper compliances. We make it clear that in the eventuality of abuse of the trust reposed, the CIT(A) will be at liberty to pass an order on the basis of material available on record. Said order was pronounced in the Open Court.
6. In the result the appeal of the assessee is allowed for statistical purposes Order pronounced in the Open Court on 31st May 2019.
Sd/-
( दवा संह ) (DIVA SINGH) या!यक सद य/Judicial Member "पन ू म"
आदे श क त)ल*प अ+े*षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant -
2. यथ / The Respondent -
3. आयकर आय, ु त/ CIT
4. आयकर आय, ु त (अपील)/ The CIT(A)
5. *वभागीय त न/ध, आयकर अपील#य आ/धकरण, च1डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar