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Provisions of Section 50C of the Income Tax Act


Court :
ITAT Hyderabad

Brief :
This is assessee’s appeal for the A.Y 2009-10 against the order of the CIT (A)-1, Hyderabad, dated 11.01.2019.

Citation :
ITA No.519/Hyd/2019

 Hyderabad ‘ A ‘ Bench, Hyderabad
(Through Video Conferencing)

Before Smt. P. Madhavi Devi, Judicial Member
Shri A. Mohan Alankamony, Accountant Member

ITA No.519/Hyd/2019
Assessment Year: 2009-10

Smt.Mamatha Divakar
Shetty, Hyderabad


Income Tax Officer
Ward 4(2)

Assessee by: Sri Pawan Kumar Chakrapani
Revenue by: Sri D.J.P. Anand, DR

Date of hearing: 15/06/2021
Date of pronouncement: 18/06/2021


Per Smt. P. Madhavi Devi, J.M.

This is assessee’s appeal for the A.Y 2009-10 against the order of the CIT (A)-1, Hyderabad, dated 11.01.2019.

2. Brief facts of the case are that the assessee individual filed her return of income on 28.3.2011 by declaring income of Rs.8,27,280/- after claiming exemption u/s 54F of the Act by depositing the capital gain (arising out of a sale of property) into Syndicate Bank, Kacheguda Branch. The case was reopened u/s 147 of the Act to apply the provisions of section 50C of the Act and accordingly the assessment u/s 147 was completed by accepting the income returned by the assessee. 

3. Subsequently, the CIT perused the assessment record under the powers vested in him u/s 263 of the Act and observed that though the assessee has received net sale consideration of Rs.1,72,39,500/- as per the sale deed dated 31.07.2008, she has deposited only a sum of Rs.1,34,00,000/- into the capital gain scheme account before the due date of filing of the return of income and the balance of Rs.38,39,500/- remained with the assessee and was not utilized for purchase of new asset till the due date of filing of the return of income. He therefore, directed the Assessing Officer to bring the unutilized sum of Rs.38,39,500/- to tax.

4. Consequential order was passed by the Assessing Officer on 5.5.2017 against the which the assessee filed an appeal before the CIT (A). However, the CIT (A) dismissed the appeal holding that the appeal is against the assessment order passed as per the direction of the Pr. CIT u/s 263 of the Act and therefore, it could not be decided by the CIT (A). Against this order of the CIT

(A), the assessee is in appeal before the Tribunal by raising the following grounds of appeal:

“1. The order of the authorities below in so far as it is against the Appellant is opposed to law, equity, weight of evidence, probabilities and the facts and circumstances in the Appellant's case.

2. The learned Commissioner of Income-tax (Appeals) - 1, Hyderabad, ought to have given the Appellant an opportunity before dismissing the appeal, under the facts and circumstances of the case.

3. The Appellant denies himself liable to be assessed on the total income of Rs. 54,22,7801-, as against the income declared in the return of income of Rs. 8,27,2801-, under the facts and circumstances of the case.

4. The learned Authorities below are not justified in adding the amount of Rs. 7,56,0001-, to the long term capital gain, under the facts and circumstances of the case. 

To know more in details find the attachment file


on 29 June 2021
Published in Income Tax
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