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2017 (1) TMI 1033 - ITAT HYDERABAD

2017 (1) TMI 1033 - ITAT HYDERABAD - TMI - Bringing the income to tax in the hands of HUF - Held that:- We have noticed that the CIT(A) has given direction according to the facts of the case and in consequence of CIT(A)’s order there is no liability or case pending against the assessee. As such there can be no grievance to the assessee. It is premature to adjudicate in the case of ‘HUF’. In the case of HUF, the issues that may arise are that the return of income was filed by the individual inste .....

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NT MEMBER For The Assessee : Shri S. Rama Rao For The Revenue : Smt. Suman Malik ORDER PER S. RIFAUR RAHMAN, A.M.: This appeal filed by the assessee is directed against the order of CIT(A)-9, Hyderabad, dated 23/12/2015 for AY 2005-06. 2. On perusal of record, we find that the assessee filed the appeal with a delay of 9 days. To this effect, the assessee filed a petition requesting for condonation of the said delay. He also filed an affidavit affirming the reasons mentioned in the petition. In t .....

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d by sufficient reasons to file the appeal belatedly, therefore, the delay is condoned and admitted the appeal for hearing and adjudication. 4. The brief facts of the case are, information was received by the Assessing Officer that during the F.Y. 2004-05 relevant to A.Y. 2005- 06 the assessee had invested an amount of ₹ 46,15,635/- in the purchase of immovable property. On verification of the document in respect of this property, it was noticed by the Assessing Officer that the transactio .....

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ity to produce the proof for investment made in purchase of property and the basis for adopting the cost of acquisition at ₹ 480/- per sq. yrd. The Assessing Officer adopted the cost of acquisition at ₹ 50 Sq.yrd as on 01.04.1981 and accordingly completed the assessment. 5. Aggrieved with the order of the AO, the assessee preferred an appeal before the CIT(A) and submitted that he is a small milk vendor and he is a Karta of HUF and that his HUF is the joint owner of the land along wi .....

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re CIT(Appeals)-IV, Hyderabad, the above assessee are afforded an opportunity of being heard and the letter issued to the above assessee is returned unserved. However, on perusal of the copy of sale deed bearing doc. No. 22/3/2005, it is evident that the subject property sold is HUF property and not individual property. Further, the assessment were made in the above cases u/s 144 of the IT Act, 1961 by assessing income treating the transactions one of purchase whereas the transaction involved is .....

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is requested that while disposing of the above appeals, a clear cut finding or direction may be given to the effect that the capital gains arising on the transfer of subject property had to be assessed in the hands of Andela Sattaiah (HUF) and Andela Rama Krishan under explanation 3 to section 153 r.w.s. 150(2) of the IT Act, 1961 so as to enable the undersigned to initiate reassessment proceedings u/s 147 in the hands of Andela Sattaiah (HUF) and Andela Ramakrishna (HUF)." 5.1 A copy of t .....

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he assessee further contended that the land was transferred by way of a development agreement to Vasavi Constructions who constructed the building but did not handover the constructed area to the assessee. Thus he submitted that what was transferred is only terrace rights and not the vacant land. It was also contended that the Assessing Officer is not correct in adopting the value fixed by the sub registrar without applying the provisions of section 50C(2). 5.2 After considering the submissions .....

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sing Officer the subject property sold is HUF property and not individual property. The Assessing Officer completed the assessment in individual capacity instead of HUF capacity as the assessee filed return of income on 31.12.2007 by treating the said property as individual property. 4.5 Further, the assessee's contentions that what was transferred is only terrace rights and not vacant land is not adjudicated upon as the assessee has not raised this issue in the grounds of appeal. However, s .....

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oner of Income-Tax (Appeals) is erroneous to the extent it is prejudicial to the assessee. 2. The learned Commissioner of Income-Tax (Appeals) ought to have seen that there is no gain with reference to the impugned transaction and that no capital gain arose to the assessee. 3. The learned Commissioner of Income-Tax (Appeals) ought not to have directed the Assessing officer to take action in the case of HUF particularly when no income escaped assessment even in the assessment of the HUF. 4. The l .....

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7. Ld. AR submitted that CIT(A) gave direction for assessment in HUF instead of individual case. He further submitted that the provisions of section 150 do not apply in this case and relied on the case Gauri Shankar Choudhary Vs. aCIT & Other, 234 ITR 865 (Patna). He submitted that the direction must relate to the assessee in question and CIT(A) cannot give any direction or assessment in the case of any other assessee or in a proceeding in which the assessee in question is not a party. 8. Ld .....

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