9911796707
TMI Blog2023 (10) TMI 1429X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 143(3) of the Act on 27.04.2021 framed by ld. ITO, Income Tax Department, National e-Assessment Centre, Delhi. 2. The assessee has raised the following grounds of appeals:- (1) The order of the CIT(A) National Faceless Appeal Centre u/s.250 in appeal No. NFAC/2017-18/10007003 dated 10.03.2023 is against law and facts of the case. (2) The CIT(A) National Faceless Appeal Centre erred in confirming the disallowance of the Long Term Capital Loss claimed of Rs. 6,25,79,960/-. (3) The CIT(A) National Faceless Appeal Centre erred in not appreciating the fact that while submitting Form 3CEA on 25.04.2021 the appellant had stated that the report had been obtained before filing the return of income but was omitted to be filed with the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough the details filed by the assessee, the ld. Assessing Officer observed that the tax at source at Rs. 13,25,000/- has been deducted under section 194IA of the Act by Mahalaxmi Wellman Fuel LLP on the sale consideration of immovable property sold by the assessee. Further ld. Assessing Officer noticed that Schedule CG of the Income Tax Return, long- term capital loss from slump sale is declared at Rs. 6,25,79,960/- Thereafter ld. Assessing Officer perused the provision of section 50B of the Act, which is a special provision for computation of capital gain in case of slump sale read with section 2(42C) of the Act. For falling under this section, assessee has to obtain Form 3CEA as provided in Rule 6H of the Income Tax Rules and the said F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. CIT(Appeals) held that the Certificate in Form 3CEA of the Accountant is mandatory to ascertain the correctness of the net worth and in absence of supporting and mandatory documentation, the claim of the appellant is not allowable. 5. Aggrieved, the assessee is now in appeal before the Tribunal. 6. Ld. Counsel for the assessee submitted that it is an admitted fact that the Form 3CEA was not uploaded alongwith the return of income before the due date of filing of the return of income. The said form was duly placed before the ld. Assessing Officer as well as ld. CIT(Appeals) and even though reliance was placed on various decisions, where it has been consistently held that the requirement of declaration was mandatory in nature but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt under section 143(1)(a) of the Act where prima facie adjustments are made by the Computer System based on the directions and instructions given therein. The case before us is a case where the assessee's case has been picked up for complete scrutiny for examining the issue of capital gain from slump sale and capital gain on sale of property. We observe that during the year under consideration, the assessee sold immovable property to Mahalakshmi Wellman Fuel LLP for a total consideration of Rs. 13,25,00,000/-. Net worth of the undertaking or division, which was sold to M/s. Mahalakshmi Wellman Fuel LLP was Rs. 19,50,79,960/-. The assessee suffered a long-term capital loss at Rs. 6,25,79,960/-. The assessee has duly claimed loss as long-ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration from slump sale and the net worth of the Undertaking or Division. An affidavit issued by the auditor namely R. Madhumita, Chartered Accountant, B. Com FCA, Membership No. 229192 has also been filed stating the reason for not uploading Form 3CEA on 16.10.2018 and the same reads as under:- 10. The above affidavit itself provides the reason and the same was on account of technical issues faced by the auditor in uploading the form 3CEA on the Income Tax Portal. It is also an admitted fact that such reports/Forms are to be uploaded by the auditor and not the assessee. We find the same to be a reasonable cause and thus beyond the control of the assessee to have furnished the form 3CEA. The best, the assessee could do, was to furnish th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings and further an affidavit has also been filed by the auditor mentioning the reason due to which the Form 3CEA was not uploaded on the E-Portal of Income Tax along with the return of income at the time of filing the return of income before the due date under section 139(1) of the Act, we are of the view that both the lower authorities ought to have treated the furnishing of Form 3CEA as a sufficient compliance for the purpose of allowing long-term capital loss claimed by the assessee under section 50B of the Act. We, therefore, set aside the finding of ld. CIT(Appeals) and decide in favour of the assessee. Thus all the effective grounds of the assessee raised on merits are allowed. 11. Others grounds being general and consequential in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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