Shivaji Rajaram Buchade, Pune V. Deputy Commissioner of Income tax, Pune

ITA 1072/PUN/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1399 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 28-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: CHETAN KARIA SHRI SUHAS BORA
• Keywords: Cost of acquisition; Fair market value; Valuation report; Capital Gains
• Section: 143(3); 54B; 54F

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO, AM AND SHRI S. S. VISWANETHRA RAVI, JM ITA NO.1071/PUN/2017 / ASSESSMENT YEAR : 2012-13 ANIL RAJARAM BUCHADE, S.NO.2, NEAR KIRTI CLASSIQUE, A/P, MARUNJI, TAL. MULSHI, DIST. PUNE 411057. PAN : BHKPB4666F. . / APPELLANT V/S THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 2, PUNE. . / RESPONDENT ITA NO.1072/PUN/2017 / ASSESSMENT YEAR : 2012-13 SHIVAJI RAJARAM BUCHADE, S.NO.2, NEAR KIRTI CLASSIQUE, A/P, MARUNJI, TAL. MULSHI, DIST. PUNE 411057. PAN : AHQPB6205P. . / APPELLANT V/S THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 2, PUNE. . / RESPONDENT ASSESSEE BY : SHRI CHETAN KARIA / SHRI SUHAS BORA. REVENUE BY : SHRI DEEPAK GARG. / DATE OF HEARING : 05.07.2021 / DATE OF PRONOUNCEMENT : 05.07.2021 2 / ORDER PER INTURI RAMA RAO, AM: THESE ARE THE APPEALS FILED BY DIFFERENT ASSESSEES DIREC TED AGAINST THE SEPARATE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS) 2, PUNE DATED 13.01.2017 FOR THE ASSESSMENT YEAR 2012-13. 2. SINCE THE IDENTICAL FACTS ARE INVOLVED IN BOTH THE APPE ALS, WE DISPOSE OF THE SAME VIDE THIS COMMON ORDER. FOR THE SAKE OF CONV ENIENCE AND CLARITY, THE FACTS RELEVANT TO ITA NO.1071/PUN/2019 IN THE CASE OF ANIL R. BUCHADE ARE STATED HEREIN. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER : THE APPELLANT IS AN INDIVIDUAL. THE RETURN OF INCOME FOR A.Y. 2012-13 WAS FILED DECLARING TOTAL INCOME OF RS.99,33,577/-. AGAINST TH E SAID RETURN OF INCOME, ASSESSMENT WAS COMPLETED BY THE DCIT, CIRCLE 2, PUNE (HEREINAFTER REFERRED TO AS ASSESSING OFFICER) VIDE ORDER DATED 04.03.2015 PASSED U/S 143(3) OF THE ACT AT A TOTAL INCOME OF RS.14,42 ,79,360/-. WHILE DOING SO, THE ASSESSING OFFICER MADE ADDITION UNDER THE HE AD CAPITAL GAINS OF RS.14,37,42,874/-. 4. THE BRIEF FACTUAL BACKGROUND IS AS UNDER : DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT Y EAR UNDER CONSIDERATION, THE APPELLANT SOLD PROPERTY OF LAND LOCATED A T SY.NO.58/2M MARUNJI, TAL. MULSHI ON 23.09.2011 FOR A CONSIDERATION OF RS.1 5,89,80,000/-. IN THE RETURN OF INCOME, THE ASSESSEE CLAIMED THE INDEXED COST OF ACQUISITION OF THE LAND BY ADOPTING FAIR MARKET VALUE (FMV) OF THE LAND AS ON 01.04.1981 3 AT RS.80,52,025/- AND ALSO CLAIMED THE COST OF IMPROVEMENT AT RS.40 LAC IN 2011-12, ACCORDINGLY, ARRIVED AT CAPITAL GAINS OF RS.6,22,57 ,506/-. FROM THE CAPITAL GAINS SO ARRIVED AT, CLAIMED EXEMPTION U/S 54B OF RS .4,54,97,400/- AND EXEMPTION U/S 54F OF RS.72,13,193/- AND SHOWN RETURN ED CAPITAL GAINS OF RS.95,46,913/-. 5. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASS ESSING OFFICER DISPUTED THE FMV AS ON 01.04.1981 ADOPTED BY THE ASSES SEE AFTER REJECTING THE VALUATION REPORT OF THE APPROVED VALUER FURNISHED BY THE ASSESSEE AND ADOPTED AT RS.1/- PER SQ.MTR AND ALSO DENIED THE CLAIM FOR EXEMPTION U/S 54B ON THE GROUND THAT THE ASSET SOLD WAS A CAPITAL A SSET AND NO AGRICULTURAL ACTIVITIES WERE CARRIED ON THE SAID LAND FOR LAST TWO YEARS PRECEDING TO THE DATE OF SALE. 6. BEING AGGRIEVED BY THE ABOVE ADDITION, THE APPELLANT PR EFERRED AN APPEAL BEFORE THE LD.CIT(A) CHALLENGING INTER-ALIA THAT THE ASS ESSING OFFICER HIMSELF OUGHT NOT HAVE DISTURBED THE VALUATION ADOPTED BY THE ASSESSEE WITHOUT REFERRING THE MATTER TO THE DISTRICT VALUATION OFFICE R (DVO) AND ALSO CHALLENGED THE DENIAL OF CLAIM FOR EXEMPTION U/S 54B BY WAY OF ADDITIONAL GROUND OF APPEAL. HOWEVER, THE LD.CIT(A) FAILED TO ADJUDICATE THE SPECIFIC GROUNDS OF APPEAL RAISED BEFORE THE LD.CIT(A). THUS, THE GR OUNDS OF APPEAL REMAIN UN-ADJUDICATED. 7. BEING AGGRIEVED BY THE NON-ADJUDICATION OF ADDITIONAL GR OUNDS OF APPEAL, THE APPELLANT IS BEFORE US IN THE PRESENT APPEAL. 8. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITS THAT T HE GROUND OF APPEAL NO.3 RAISED BEFORE LD.CIT(A) AND THE ADDITIONAL GROUND OF AP PEAL CHALLENGING 4 THE DENIAL OF EXEMPTION REMAINED UN-ADJUDICATED BY THE LD.C IT(A). THEREFORE, THE MATTER BE RESTORED TO THE FILE OF LD.CIT(A) FOR ADJUDICATION OF THE GROU NDS OF APPEAL. 9. LD.D.R. HAS NO SERIOUS OBJECTION TO THE PROPOSITION C ANVASSED BY THE LEARNED COUNSEL FOR THE ASSESSEE. 10. WE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. IT IS UNDISPUTED THAT CERTAIN GROUNDS OF APPEAL BEFORE LD.CIT(A) REMAIN UN-AD JUDICATED AND THEREFORE, WE REMAND THE MATTER BACK TO THE FILE OF LD.CIT (A) FOR LIMITED PURPOSE OF ADJUDICATING THE GROUND OF APPEAL NO.3 RAISED BEFORE LD.CIT(A) WHICH READS AS UNDER : THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 2 HAS ERRED IN NOT REFERRING THE MATTER TO DVO COMPLETING ASSESSMENT AND ALSO ADDITIONAL GROUND OF APPEAL AT PAGE NO.9 OF THE PAPER BOOK WHICH READS AS UNDER CHALLENGING THE DENIAL OF CLAIM FOR EXEMPTION U/S 54B OF THE I.T.ACT. THE LEARNED DEPUTY COMMISSIONER OF INCOME TAX ERRED IN NOT ALLOWING DEDUCTION UNDER SECTION 54B OF THE INCOME TAX AC T AND ADDED BACK TO THE TOTAL INCOME. 11. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. 12. ITA NO.1072/PUN/2017 WE HAVE ALREADY DECIDED THE ISSUE UNDER IDENTICAL FACTS IN FAVOUR OF THE ASSESSEE IN ITA NO.1071/PUN/2017 AND PARTLY ALLOWED TH E APPEAL OF THE 5 ASSESSEE FOR STATISTICAL PURPOSES BY REMANDING THE MATT ER TO THE FILE OF LD.CIT(A). THEREFORE, OUR DECISION IN ITA NO.1071/PUN/2017 SHALL APPLY, MUTATIS MUTANDIS, TO THIS APPEAL ALSO AND ACCORDINGLY TH IS APPEAL IS ALSO PARTLY ALLOWED FOR STATISTICAL PURPOSES. 13. IN THE RESULT, THE APPEAL OF ASSESSEE IN ITA NO.1072/ PUN/2017 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 14. IN THE COMBINED RESULT, BOTH THE APPEALS OF ASSESSE E ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 5 TH DAY OF JULY, 2021. SD/- SD/- (S. S. VISWANETHRA RAVI) (IN TURI RAMA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 5 TH JULY, 2021. YAMINI / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-2, PUNE. 4. THE PR.CIT-2, PUNE. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.