2013 (2) TMI 811 - AT - Income Tax

Summary

Issues Involved:
1. Initiation of assessment proceedings u/s 148 read with section 147 of the I.T. Act, 1961.
2. Taxability of enhanced compensation in the assessment year 2002-03.
3. Rejection of deduction claim u/s 54F of the I.T. Act, 1961.
4. Validity of assessment made u/s 144 of the I.T. Act, 1961.
5. Assessment of enhanced compensation in the hands of a deceased person through his legal heir.

Summary:

1. Initiation of Assessment Proceedings (u/s 148 read with section 147):
The Tribunal addressed the issue of the initiation of assessment proceedings u/s 148 read with section 147 for the assessment year 2002-03. The assessees argued that the CIT(A) erred in upholding the initiation of these proceedings. However, this ground was not pressed by the assessees during the appellate proceedings, leading to its dismissal as not pressed.

2. Taxability of Enhanced Compensation:
The assessees contended that the CIT(A) erred in holding that the enhanced compensation was taxable in the assessment year 2002-03. Similar to the first issue, this ground was also not pressed by the assessees and was dismissed as not pressed.

3. Rejection of Deduction Claim (u/s 54F):
The primary contention was that the CIT(A) erred in upholding the rejection of the deduction claim u/s 54F. The Tribunal reviewed the evidence and found that the assessees failed to provide bills or vouchers to substantiate the construction or renovation of a residential house. The valuation report from the Registered Valuer was deemed insufficient as it did not confirm the year of construction. The Tribunal upheld the findings of the CIT(A) and AO, stating that the assessees did not discharge the onus to prove the construction of a residential house within the stipulated time, thus not qualifying for the exemption u/s 54F. The Tribunal cited the jurisdictional High Court's decision in Pawan Kumar Garg v. CIT 311 ITR 397 (P&H) and the Kerala High Court's decision in Mrs. Meera Jacob v. ITO 313 ITR 411 (Ker) to support its conclusion.

4. Validity of Assessment Made (u/s 144):
The assessees argued that the CIT(A) erred in upholding the assessment made u/s 144. The Tribunal found that the AO had provided repeated opportunities to the assessees to submit supporting evidence, which they failed to do. The Tribunal agreed with the CIT(A)'s findings that the assessment was completed after considering the available evidence and explanations, and thus, the assessment u/s 144 was justified. This ground of appeal was dismissed.

5. Assessment of Enhanced Compensation in the Hands of a Deceased Person:
One of the assessees contended that the CIT(A) erred in upholding the assessment of enhanced compensation in the hands of a deceased person through his legal heir. This ground was not pressed during the appellate proceedings and was dismissed as not pressed.

Condonation of Delay:
The Tribunal condoned the delay in filing the appeals, attributing it to the non-allotment of PAN and considering the delay to be insignificant and justified.

Conclusion:
The Tribunal dismissed all the grounds of appeal raised by the assessees, upholding the findings of the CIT(A) and AO. The appeals (ITA No. 944, 945 & 946/Chd/2009) were dismissed in their entirety. The order was pronounced in the Open Court on 19th Feb., 2013.