TaxTMI 
TaxTMI 
2024 (9) TMI 273
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.... 3. The Ld. CIT(A) erred in upholding the notice u/s 148 of the Act issued by the Ld. AO as no valid notice was served upon the appellant under section 148 of the Act and, hence the reassessment proceedings are null and void. 4. The Ld. CIT(A) erred in confirming the action of the Ld. AO in making addition of Rs. 2,00,00,000/- in respect of capital gains on sale of immovable property 5. The Ld. CIT(A) erred in not even allowing the deduction of indexed cost of acquisition while computing capital gains and in not treating the capital gains as long term capital gains. 6. The Ld. CIT(A) erred in not allowing deduction u/s 54 of the Act in respect of investment in new residential house property. 7. The Ld. AO erred in initiating notice of penalty u/s 274 read with section 271 and 271F of the Act dated 26.12.2017. The Appellant prays that the penalty proceedings u/s 274 read with section 271 of the Act be dropped. 8. The Ld. CIT (A) has erred upholding the action of the Ld. AO in the levying interest u/s 234A, 234B and 234C of the Act." 3. Brief facts of the case are that assessee is a non-resident. She did not file her return of income fo....
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....efore the Tribunal. 6. In respect of non-filing of return by the assessee, Ld. counsel submitted that assessee was of the view that there was no taxable long-term capital gains and hence it was not necessary to file the return for the year under consideration. Further, it was submitted that assessee had made an application with the office of ITO(IT)-3(1) for issuance of certificate u/s. 197 of the Act which was issued on 17.03.2010 for 'Nil' TDS on the impugned sale transaction. It was submitted that by making this application, assessee had disclosed the impugned sale transaction of the immovable property and thus there was no intention to conceal any income on this account by the assessee. 6.1. For the non-compliance of statutory notices issued by the Ld. Assessing Officer, it was submitted that notices were not received by the assessee since the address with the Department was of Hong Kong, namely Flat D - 12, F Wing, On Court 24, Homantin Hill Road, Hammantin, Hong Kong. Assessee came to know for the first time that the re-assessment proceedings u/s. 147 r.w.s. 144 had been concluded from the information from various mutual fund AMCs about the initiation of recovery ....
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....ank statement submitted try the assessee the cheque of the said amount was credited on 31.03.2010 in the joint bank account of the assessee and his husband Mr. Sameer Belani having account no. 0000005133702520 maintained with M/s DNP Paribas. 9.1.2 The assessee had purchased an immovable property being residential house (i.e. Flat No. 14, 8th floor, Nav Reshma Apartment CHS Ltd., Pali Hill. Bandra- West, Mumbai-400050) from Mr. Samir Narain Bhojwani vide registered deed of sale dated 10.05.2010 for a consideration of Rs. 10,00,00,000/- and registration charges of Rs. 30.900/- and stamp duty of Rs. 49,82,600/- was mentioned on the said deed. As per the copy of bank statements submitted, the assessee had made following payments for purchase of this new residential house property: S. No. BNP Paribas Bank Account No. Name of the Account Holder/s Date Payment Amount in Rs.) 1 0900905133702520 Sameer Belani Seema Heera 05.04.2010 1,00,00,000/- 2 0900905133702520 Sameer Belani/ Seema Heera 05.05.2010 1,00,00,000/- 3 0900905133702617 Sameer Belani Seema Heera TV Products (HK) Ltd. 05.05.2010 8,00,00,000/- Total Amount ....
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....ne residential house in India), then), instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say, i. if the amount of the capital gain [is greater than the cost of the residential house)] so purchased or constructed (hereafter in this section referred to as the new asset)), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year, and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be nil, or ...." On the basis of details available on record the following facts are emerges: (1) The assessee is an individual. (ii) The assessee had earned long term capital gain of Rs.93,17,462/- on sale of long term capital assets as the property which was sold had been held by the assessee for more than 03 years. (iii) The assessee had made inve....
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.... more than the amount of sale consideration received by the assessee on transfer of her immovable property on which capital gain had accrued. 9.1. Conditions specified for claiming deduction u/s. 54 against the long-term capital gain accruing on transfer of a residential house property has been stated to be satisfied by the Ld. Assessing Officer in his remand report. Admittedly, assessee had failed to claim the benefit in her return but made all the efforts by furnishing the required details with corroborative documentary evidences before the First Appellate Authority as well as before the Ld. Assessing Officer in the remand proceedings. These are admitted facts and the denial of the claim is only on technical grounds that assessee had not furnished return of income claiming such deduction. Substantively, when law confers benefit on the assessee under statute, it cannot be taken away by the authority on mere technicalities. In this regard, reference is made to Article 265 of the Constitution of India in terms of which it is a settled position of law that no tax can be levied / recovered without the authority of law. 9.2. Similar issue came up before the Hon'ble Hi....
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....ondent No. 2 is directed to reassess the taxable income of the petitioner, by taking into consideration the benefit available to her under s. 54F of the IT Act and pass appropriate order." 9.3. Ld. Counsel also referred to Taxpayers' Charter dealt by section 119A of the Act. From the same, we note that there are two parts to it, first being commitment by the Income Tax Department and second being expectations from the Taxpayers. Clause 6 and clause 9 from the commitment by the Income Tax Department are relevant to the present case which are as under: Clause 6. Collect the correct amount of tax The Department shall collect only the amount due as per the law. Clause 9. Hold its authorities accountable The Department shall hold its authorities accountable for their actions. 9.4. Similarly, clause 1 and clause 5 are relevant in the present case from the expectations from Taxpayers which are as under: Clause 1. Be honest and compliant Taxpayer is expected to honestly disclose full information and fulfil his compliance obligations. Clause 5. Respond in time Taxpayer is expected to make submissions a....