Shri Himadri Paul, L/H of Late N.C. Paul, Kolkata V. ITO, Ward - 31(1), Kolkata, Kolkata

ITA 103/KOL/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70494 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2013
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 15-01-2010
• Court: TRIBUNAL
• Department Lawyers: V A RAJU
• Keywords: Cost of acquisition; Fair market value; Valuation report
• Section: 143(3)

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , /AND . . . . ' '' ''# '#'# '#, $% ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI ABRAHAM P. GEORGE, AM] & & & & / I.T.A NO. 103/KOL/2010 '( )* '( )* '( )* '( )*/ // / ASSESSMENT YEAR: 2006-07 SHRI HIMADRI PAUL, L/H OF LATE VS. INCOME-TAX OF FICER, WD-31(1), KOLKATA N. C. PAUL (PAN: AFUPP3969C) (,- /APPELLANT ) (./,-/ RESPONDENT ) DATE OF HEARING: 12.12.2013 DATE OF PRONOUNCEMENT: 19.12.2013 FOR THE APPELLANT: SHRI RAVI TULSIYAN FOR THE RESPONDENT: SHRI V. A. RAJU, SR. DR $0 / ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XIX, KOLKATA IN APPEAL NO. 326/CIT(A)-XIX/ITO,WD-31(1),KOL/08-09 DATED 13.10.2 009. ASSESSMENT WAS FRAMED BY ITO, WARD-31(1), KOLKATA U/S. 143(3) OF THE INCOME-TAX A CT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2006-07 VIDE HIS ORDER DA TED 31.12.2008. 2. AT THE OUT SET, LD. COUNSEL FOR THE ASSESSEE STA TED THAT THIS IS A RECALLED MATTER AND TRIBUNAL IN MA NO.01/KOL/2012 HAS RECALLED THE GROU ND NO. 4 VIDE PARA 5 OF TRIBUNALS ORDER DATED 16.03.2012 AS UNDER: 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF MATERIAL AVAILABLE ON RECORD THOUGH WE HAVE SET ASIDE THE ENTIRE ISSUE TO THE FILE OF AO THERE IS NO SPECIFIC INSTRUCTIONS AS REGARDING GROUND NO.4 AS RAISED BY THE LD. COUNSEL FOR ASSESSEE. THEREFORE IN THE INTEREST OF JUSTICE WE RECALL OUR ORDER DATED 11.03.2011 TO THE EFFECT OF DEALING WITH GROUND NO. 4 ONLY. WE FIX THE CASE FO R HARING ON MERIT ON 13.07.2012. SINCE THE SAID DATE HAS BEEN PRONOUNCED IN THE OPEN COURT NO FRESH NOTICE OF HEARING WILL BE SERVED ON EITHER PARTIES. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE SOLD ONE THIRD SHARE OF HOUSE PROPERTY AND DECLARED LONG TERM CAPITAL GAINS (LTCG) AT RS.6,41,529/- OUT OF WHICH HE CLAIMED EXEMPTION U/S. 54EC FOR THE INVESTMENT MADE IN NABARD CAPITAL GAIN S BOND AT RS.6.50 LAC. ACCORDING TO AO, AS PER THE STAMP VALUATION AUTHORITY THE MARKET VALUE OF TWO THIRD SHARE OF HOUSE PROPERTY WAS AT RS.2,31,79,255/- AND, THEREFORE, H E COMPUTED LTCG BY TAKING FULL VALUE OF CONSIDERATION AT RS.1,15,89,627/- AND THE COST OF A CQUISITION OF HIS SHARE WAS TAKEN AT 2 ITA NO. 103/K/2010 SHREE HIMADRI PAUL, AY:2006-07 RS.8,91,804/-. NOW ASSESSEES GRIEVANCE IS AGAINST THE ADOPTION OF COST OF ACQUISITION AS ON 01.04.1981 AT RS.8,91,804/-. ACCORDING TO ASSESSEE , NEITHER AO NOR CIT(A) HAS CONSIDERED THE VALUE AS ON 01.04.1981 AND ASSESSEE SUBMITTED BEFOR E THE TRIBUNAL THE VALUATION REPORT FROM A REGISTERED VALUER VALUING THE PROPERTY AS ON 01.04. 1981 I.E. FAIR MARKET VALUE AT RS.49,34,000/-. THIS VALUATION REPORT IS DATED 07.03.2011. ASSESSM ENT WAS FRAMED ON 31.12.2008 VIDE ORDER U/S. 143(3) OF THE ACT AND CIT(A)S ORDER IS DATED 13.10.2009. AS THE ASSESSEE HAS PRODUCED VALUATION REPORT TAKING THE VALUE AS ON 01.04.1981 AT RS.49,34,000/- WITH RESPECT TO THIS PROPERTY, THE ASSESSEES SHARE COMES TO ONE THIRD I .E. RS.16,44,666/-. IT MEANS THAT THE AO SHOULD HAVE COMPUTED THE LTCG AFTER TAKING THE FAIR MARKET VALUE OF THIS PROPERTY AS ON 01.04.1981 AS THE ASSESSEE IS HOLDING THIS PROPERTY W.E.F. 01.10.1976 (AS MENTIONED IN THE VALUATION REPORT). IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT LET THE AO TAKE THE FAIR MARKET VALUE AS ON 01.04.1981 AS THE ASSESSEE HAS SUBMITTE D FAIR MARKET VALUE FROM A REGISTERED VALUER AT RS.16,44,666/- (HIS ONE-THIRD SHARE) AND COMPUTE THE LTCG AFTER INDEXING W.E.F. 01.04.1981. ACCORDINGLY, THIS ISSUE OF ASSESSEES APPEAL IS SET ASIDE TO THE FILE OF AO FOR RECOMPUTATION OF LTCG IN TERMS OF THE ABOVE. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER IS PRONOUNCED IN THE OPEN COURT ON 19 TH DEC., 2013.. SD/- SD/- . . . . ' '' ''# '#'# '# , $% , (ABRAHAM P. GEORGE) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 19TH DECEMBER, 2013 12 '3' 4 JD.(SR.P.S.) $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . ,- / APPELLANT SHRI HIMADRI PAUL, L/H OF LATE N. C. P AUL, , CHOWRINGHEE ROAD, KOLKATA-700 013 2 ./,- / RESPONDENT ITO, WARD-31(1), KOLKATA. 3 . 0' ( )/ THE CIT(A), KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR, KOLKATA BENCHES, KOLKATA / ./ TRUE COPY, $0'>/ BY ORDER, ' /ASSTT. REGISTRAR .