Sh. Gurdip Singh, Sidhu, Jalandhar V. ACIT, Jalandhar

CO 34/ASR/2010

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 1141 (ITAT-AMRITSAR)
• Duration Of Justice: 4 year(s) 8 month(s) 2 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 31-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-08-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 28-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAVISH SOOD
• Keywords: Sale consideration of property below Jantri Value; Capital asset
• Section: 143(3); 50C

Judgement Text

I.T.A. NO. 464 /ASR/201 0 & CO - 34/ASR/2010 ASSESSMENT YEAR: 2006 - 07 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR [CORAM: PRAMOD KUMAR AM AND A.D. JAIN JM] I.T.A. NO. 464 /ASR/201 0 ASSESSMENT YEAR: 20 0 6 - 07 DEPUTY COMMISSIONER OF INCOME TAX, . APPELLANT CIRCLE - III, JA LANDHA R. VS. GURDIP SINGH SINDHU, RESPONDENT 17, WARYAM NAGAR, JALANDHAR. [PAN: A CMPS 7215 D ] C.O. NO.34/ASR/2010 (ARISING OUT OF I.T.A. NO. 464 /ASR/201 0) ASSESSMENT YEAR: 200 6 - 07 GURDIP SINGH SINDHU, . APPELLANT 17, WARYAM NAGAR, JALA NDHAR. [PAN: A CMPS 7215 D ] VS. DEPUTY COMMISSIONER OF INCOME TAX, RESPONDENT CIRCLE - III, JA LANDHAR. APPEARANCES BY: TARSEM LAL FOR THE REVENUE RAVISH SOOD FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING: JUNE 05 , 2015 DATE O F PRONOU NCING THE ORDER: AUGUST 31 , 2015 O R D E R PER PRAMOD KUMAR , AM : 1. THIS APPEAL FILED BY THE ASSESSING OFFICER AS ALSO CROSS OBJECTION FILED BY THE ASSESSEE CALL INTO QUESTION CORRECTNESS OF THE ORDER DATED 30 TH SEPTEMBER 2010 I.T.A. NO. 464 /ASR/201 0 & CO - 34/ASR/2010 ASSESSMENT YEAR: 2006 - 07 PAGE 2 OF 3 PASSED BY THE LEARNED CIT(A) IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2006 - 07. 2. VIDE ORDER DATED 23 RD AUGUST 2012, THIS TRIBUNAL HAD CONFIRMED THE RELIEF GRANTED BY THE CIT(A) IN RESPECT OF INVOKING SECTION 50C FOR COMPUTATION OF CAPITAL GAINS, AND REMITTED THE MATTER, REGARDING ESTIMATION OF THE VALUE AS ON 1.4.81 OF RELATED CAPITAL ASSET SOLD DURING THE YEAR, TO THE FILE OF THE ASSESSING OFFICER. LEARNED COMMISSIONER CHALLENGED THIS ORDER IS IN APPEAL BEFO RE HONBLE HIGH COURT. DURING THE COURSE OF THE PROCEEDINGS BEFORE THEIR LORDSHIPS, LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT AS SALE CONSIDERATION STATED BY THE ASSESSEE HAS NOW BEEN ACCEPTED BY THE STAMP VALUATION AUTHORITY, THE SAME SHOULD BE TAKE N INTO ACCOUNT. IT IS IN THIS BACKGROUND THAT THEIR LORDSHIPS HAVE REMITTED THE MATTER TO US FOR DECIDE THIS ISSUE. THATS HOW WE HAVE COME TO BE IN SEISIN OF THE MATTER AGAIN. 3. UPON PERUSING THE DOCUMENTS FILED BEFORE US, WE FIND THE PLEA OF THE ASSESSE E TO BE CORRECT. VIDE ORDER DATED 14 TH JANUARY 2008, AND HAVING NOTED THAT THE LAND IN QUESTION IS NEAR THE RAILWAY LINE AND THAT THERE IS NO PASSAGE LEADING TO THIS ROAD, COLLECTOR, WHICH IS THE APPROPRIATE AUTHORITY IN THIS REGARD, HAS COME TO THE CONCLU SION THAT SALE DEED OF THE LAND HAS BEEN REGISTERED AT THE RIGHT PRICE. IN VIEW OF THIS FACTUAL POSITION, THE VERY BASIS OF APPLYING NORMAL CIRCLE RATE, BY RESORTING TO THE PROVISIONS OF SECTION 50C, CEASES TO BE VALID IN LAW. ONCE THERE IS A SPECIFIC FIND ING BY THE APPROPRIATE AUTHORITY THAT THE SALE DEED IS REGISTERED AT THE RIGHT PRICE, THE NORMAL CIRCLE RATES APPLICABLE IN THE AREA, WHERE LAND IS SITUATED, LOSE THEIR RELEVANCE. THE ACTION OF THE ASSESSING OFFICER WAS THUS VITIATED IN LAW FOR I.T.A. NO. 464 /ASR/201 0 & CO - 34/ASR/2010 ASSESSMENT YEAR: 2006 - 07 PAGE 3 OF 3 THIS REASON ALSO. THE ACTION OF THE CIT(A), IN GIVING THE IMPUGNED RELIEF, WAS THUS CORRECT, THOUGH FOR A REASON OTHER THAN THE REASON GIVEN BY THE CIT(A) AS WELL. T 4. WHILE THERE IS THUS NO CHANGE IN THE CONCLUSION ARRIVED AT BY THE TRIBUNAL, VIDE ORDER DATED 23 RD AUGUST 2012, THERE IS THIS ADDITIONAL REASON FOR CONFIRMING THE RELIEF GRANTED BY THE CIT(A). THIS ORDER WILL BE DEEMED TO BE ATTACHED TO AND FORMING PART OF OUR ORDER DATED 23 RD AUGUST 2012. 5. IN THE RESULT, THE APPEAL OF THE ASSESSING OFFICER IS DISMI SSED AND THE CROSS OBJECTION OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED TODAY ON THE 31 ST DAY OF AUGUST, 2015. SD/XX SD/XX A D JAIN PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED THE 31 ST DAY OF AUGUST, 2015 C OPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR