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Shri A. Aravind LR of Sri A. Ramulu Versus Dy. Commissioner of Income Tax, Circle 9 (1) , Hyderabad

2017 (10) TMI 318 - ITAT HYDERABAD

Assessment in hands of legal heirs - assessment in the hands of the vendee as well as the co-owner - capital gain - Held that:- ITAT in the earlier proceedings, had clearly considered the issue and had set aside the assessment to the file of the AO observing that the cases of the vendee Shri Sai Sree Projects and the co-owner, Smt. N. Andalamma have been set aside to the file of the AO. Consequent to this direction, the AO is required to consider the assessments in the hands of the vendee as wel .....

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ssee has not filed the legal heir certificate. We cannot find fault with this approach of the AO, since the assessee has not filed the legal heir certificate even before us at this stage. But, the assessee can file such certificate even at this stage. - Neither the AO nor the CIT (A) have correctly followed the earlier directions of the Income Tax Appellate Tribunal. In view of the same, we deem it fit and proper to remand the issue to the file of the AO with a direction to consider the ass .....

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a transfer of the property. - ITA No.543/Hyd/2016 - Dated:- 4-10-2017 - Smt. P. Madhavi Devi, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For The Assessee : Shri K.A. Sai Prasad For The Revenue : Shri B. Raja Ram, DR ORDER Per Smt. P. Madhavi Devi, J.M. This is assessee s appeal for the block period 1991-92 to 2000-01. In this appeal, the assessee is aggrieved by the order of the learned CIT (A)-7, Hyderabad, dated 18.12.2015. The assessee has raised the following grounds of app .....

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First Appellate Authority failed to adjudicate the grounds on validity of the assessment order in the absence of notices to all the legal heirs. 5. The learned First Appellate Authority is not justified in confirming the action of the Assessing Officer in bringing to tax the entire long term capital gain in the hands of the appellant alone ignoring the other legal heirs. 6. The learned First Appellate Authority is not justified in confirming the indexed cost of acquisition as worked out by the A .....

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Hyderabad. The owners of the land were, i) Smt. N. Andalamma and her relatives having 31.50% share in this property to the extent of 3202 sq. yards. ii) Shri A. Ramulu and his brothers Sri A. Anjaiah, Sri A. Kesavulu holding joint property of 38.50% of the total area of the land i.e. 10164 sq. yards. iii) Shri N. Srinivas, Sri N. Ganesh and Shri N. Raju having 30% of the joint share in the total of the land of 10164 sq. yards. 3. The entire property of 10164 sq. yards was Service Inamdari land w .....

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r, 1999, the Enforcement Directorate, Govt. of India, had conducted certain inquiries/investigations into the alleged violation of Foreign Exchange Regulation Act, by Shri Sambasiva Rao, the promoter of the two companies mentioned above, and it was found that he had received certain secret commission from a supplier of urea from Turkey without the authority from the RBI and that such secret commission was used by him to purchase the 10164 sq. yards of land located at Nampally, Hyderabad from the .....

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O came to the conclusion that the transactions relating to the transfer of land by the assessee and other co-owners in the financial year 1995-96, were not disclosed in their regular returns of income filed. He, therefore, issued a notice u/s 158BD of the Act to the assessee and completed the assessment thereafter bringing capital gains arising from such transfer of land to tax. The assessee challenged the said assessment before the CIT (A), who confirmed the order of the AO and the assessee cam .....

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263 order, the Tribunal in IT(SS)A No. 3/Hyd/09 had set aside the same to the CIT on the ground that no proper opportunity of hearing was offered or extended to the assessee. The CIT, consequent to the order of the Tribunal, observed that there was no assessment order to be revised as the Income Tax Appellate Tribunal had set aside the assessment order, yet he directed the AO to do the assessment afresh after considering his directions to consider the facts relating to quantum of assessee s shar .....

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2009 in which the Tribunal had modified its earlier order stating that the assessment has been set aside and the CIT may wait for the assessment order to be passed by the AO in pursuance of the directions of the Tribunal and only if warranted may consider initiating proceedings u/s 263 of the Act again. 7. Consequent to the order of the ITAT, the AO completed the assessment afresh. During such assessment proceedings, the learned Counsel for the assessee filed an application that the assessee, Mr .....

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he land to one Shri N. Narsimha, who had also offered the capital gain to tax in his hands. The AO did not accept this contention of the assessee also, on the ground that the copy of the will was not produced before her. 8. As regards the actual sale consideration received by Sri A. Ramulu and his two brothers to be only ₹ 54.00 lakhs, the AO did not accept the same. She relied upon the notings in the seized material to come to the conclusion that the total value of the property is ₹ .....

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case of the co-owner Smt. N. Andalamma and also in the case of M/s Sai Sree Projects (P) Ltd. The CIT (A) however, confirmed the order of the AO but directed that the share of the assessee, Sri Ramulu, is to be considered as 978.275 sq. yards only. For coming to this conclusion, he accepted that the assessee, Mr. A. Ramulu s mother had willed her share of the property in favour of one Shri N. Narasimha, who has also been assessed to tax for the capital gain. Aggrieved by this order of the CIT (A .....

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Further, it was also submitted that the assessment in the case of Smt. N. Andalamma had been set aside by the Tribunal for re-consideration, in view of the fact that the assessment case of the vendee, Sri Sai Projects (P) Ltd, had also been set aside. He submitted that in the earlier round of litigation before the ITAT, all these facts were brought to the notice of the Tribunal and the Tribunal had set aside the assessment of the assessee to the file of the AO by directing the AO to re-do the as .....

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curred for the purchase of the property by Mr. Sambasiva Rao. He drew our attention to the fact that at one place, registration charges are mentioned as ₹ 1.4 crores, whereas at another place, ₹ 2 crores is mentioned whereas the actual registration charges incurred was ₹ 16.00 lakhs (approximately) only. Therefore, according to him, the seized material is not reliable and cannot be the basis for making any addition. He also submitted that the possession of the property was neve .....

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entire capital gain is brought to tax in his hands, which is not correct. Thus, the learned Counsel for the assessee prayed that the assessment be set aside to the file of the AO with a specific direction to redo the assessment after bringing all the LR s on record and after considering the assessments made in the case of the co-owner, Smt. N. Andalamma as well as the vendee M/s Sri Sai Sree Projects (P) Ltd as directed by the Tribunal in the earlier proceedings. 12. The learned DR, on the othe .....

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e vendee as well as the co-owner before completing the assessment in the hands of the assessee to adopt a uniform and rational approach. Further, we also find that the assessment was initially completed in the hands of Shri A. Ramulu, who has died thereafter, and all his legal heirs have to be brought on record to bring to tax his income. Though the learned Counsel for the assessee has brought to the notice of the AO that Shri A. Ramulu is survived by three sons, the AO has refused to bring them .....

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