ACIT, Ajmer V. LATE SHRI PRATAP CHABD JAIN,

ITA 1074/JPR/2010

• Counselvise Citation: 107423114 RSA 2010
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 30-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Sale consideration of property below Jantri Value; Capital asset
• Section: 50C

Judgement Text

1 ITA 1074-10 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 1074/JP/2010 ASSTT. YEAR : 2006-07. THE ACIT, CIRCLE-2, VS. LATE SHRI PRATAP CHAND J AIN, AJMER. C/O LEGAL HEIR SMT. ASHA CHAURDIA, E-55, PANCHSHEEL PARK, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : WRITTEN SUBMISSION DATE OF HEARING : 03.8.2011. DATE OF HEARING : 19 .8.2011. ORDER DATE OF ORDER : 19/08/2011. PER R.K. GUPTA, J.M. THE DEPARTMENT IS OBJECTING IN CANCELING THE PENAL TY OF RS. 6,41,798/- LEVIED BY AO UNDER SECTION 271(1)(C) RELATING TO ASSESSMENT Y EAR 2006-07. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE THOUGH W RITTEN SUBMISSIONS ARE PLACED ON RECORD. 3. THE LD. D/R HAS PLACED RELIANCE ON THE ORDER OF AO. THE APPEAL OF THE DEPARTMENT IS DISPOSED OFF AFTER CONSIDERING THE ORDERS OF THE AO AND LD. CIT (A) AND THE WRITTEN SUBMISSIONS. 4. IN THIS CASE ASSESSEE HAS DECLARED LONG TERM CAP ITAL GAIN ON SALE OF PROPERTY. THE DECLARED SALE VALUE OF THE PROPERTY WAS AT RS. 55,0 0,000/-. FOR THE PURPOSE OF STAMP DUTY THIS PROPERTY WAS VALUED AT RS. 83,60,368/-. THE A O THEREFORE, COMPLETED THE ASSESSMENT 2 BY TAKING SALE PRICE OF THIS PROPERTY AT RS. 83,60, 368/- AS PER PROVISIONS OF SECTION 50C OF THE IT ACT. THE ADDITION WAS ALSO CONFIRMED BY THE LD. CIT (A) AND NO SECOND APPEAL WAS FILED BY THE ASSESSEE. THEREAFTER, AO INITIATE D PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT. 5. THE ASSESSEE FILED DETAILED REPLY BEFORE THE AO. AFTER CONSIDERING THE SUBMISSIONS, THE AO NOTED THAT ASSESSEE HAS FURNISH ED INACCURATE PARTICULARS FOR CONCEALING THE INCOME. THEREFORE, HE HELD THAT PRO VISIONS OF SECTION 271(1)(C) ARE APPLICABLE IN THE FACTS OF THE PRESENT CASE. THERE FORE, HE LEVIED PENALTY OF RS. 6,41,798/-. DETAILED WRITTEN SUBMISSIONS WERE FILED BEFORE LD. CIT (A). IT WAS SUBMITTED THAT THIS IS NOT THE CASE OF THE DEPARTMENT THAT ASSESSEE HAS RE CEIVED SOME AMOUNT OVER AND ABOVE THE AMOUNT AS PER SALE DEED. THE HIGHER VALUE WAS ADOPTED BY THE DEPUTY REGISTRAR FOR THE STAMP VALUATION PURPOSE ONLY. THOUGH IT WAS AG ITATED BEFORE LD. CIT (A), HOWEVER, LD. CIT (A) HAS CONFIRMED THE QUANTUM ADDITION IN V IEW OF PROVISIONS OF SECTION 50C. TO BUY PEACE, ASSESSEE HAS NOT FILED ANY SECOND APPEAL . IT WAS FURTHER SUBMITTED THAT THERE IS NO MATERIAL BEFORE AO TO HOLD THAT ASSESSEE HAS REC EIVED OVER AND ABOVE THE ACTUAL SALE VALUE. IT WAS ALSO SUBMITTED THAT FAIR MARKET VALU E AS ON 1.4.1981 OF RS. 4,06,200/- WAS ACCEPTED BY THE AO ON THE BASIS OF REGISTERED VALUE RS REPORT. HOWEVER, THE ADDITION WAS MADE ON THE BASIS OF VALUATION ADOPTED BY STAMP VAL UATION OFFICER. THEREFORE, NO PARTICULARS OF INCOME HAVE BEEN CONCEALED OR FILED INACCURATE PARTICULARS. RELIANCE WAS PLACED IN CASE OF CIT VS. SKYLINE AUTO PRODUCTS (P) LTD., 271 ITR 335 (MP), IN CASE OF HINDUSTAN STEEL LTD., 83 ITR 26 (SC), IN CASE OF K. C. BUILDERS, 265 ITR 562 (SC) AND IN CASE OF RELIANCE PETRO PRODUCTS PVT. LTD., 322 ITR 158 (SC). RELIANCE WAS PLACED ON VARIOUS DECISIONS OF THE TRIBUNAL ALSO INCLUDING TH E DECISION OF JAIPUR BENCH IN THE CASE 3 OF ATMARAM MAHIPAL VS. ITO IN ITA NO. 611/JP/1999 A ND IN CASE OF ITO VS. REGISTHAN WOOLEN CARPET FACTORY, ITA NO. 292/JP/2001. THE LD . CIT (A) AFTER CONSIDERING THE SUBMISSIONS AND TAKING INTO CONSIDERATION ALL THE D ECISIONS RELIED UPON BY THE ASSESSEE, FOUND THAT ASSESSEE HAS NOT FURNISHED ANY INACCURAT E PARTICULARS TO CONCEAL THE INCOME. PLACING RELIANCE ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF M/S. RELIANCE PETRO PRODUCTS PVT. LTD. (SUPRA) WHERE THERE IS NO FINDING THAT ANY DETAILS SUPPLIED BY THE ASSESSEE IN ITS RETURN ARE FOUND TO BE INCORRECT OR ERRONEOUS OR FALSE THERE IS NO QUESTION OF INVITING THE PENALTY UNDER SECTION 271(1)(C), DELET ED THE PENALTY. 6. NOW THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 7. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) AND THE WRITTEN SUBMISSIONS OF THE ASSESSEE, WE FIND NO INFIRMITY I N THE FINDING OF LD. CIT (A). THE LD. CIT (A) HAS CONSIDERED VARIOUS CASE LAWS WHICH ARE IN FAVOUR OF THE ASSESSEE. ON MERIT ALSO WE FIND THAT THIS IS NOT A CASE OF CONCEALMENT OF ANY INCOME ON WHICH PENALTY UNDER SECTION 271(1)(C) CAN BE LEVIED. THE ADDITION TO T HE TOTAL INCOME WAS MADE AS PER PROVISIONS OF SECTION 50C OF THE ACT WHICH IS A DEE MING PROVISION WHICH STATED THAT WHERE SALE CONSIDERATION DISCLOSED IN RESPECT OF TR ANSFER OF CAPITAL ASSET IS LESS THAN THE VALUE ADOPTED FOR THE PURPOSE OF PAYMENT OF STAMP D UTY, THE VALUE SO ADOPTED SHALL BE DEEMED TO BE THE FULL VALUE OF CONSIDERATION FOR SU CH TRANSFER. BUT THESE FACTS ALONE ARE NOT SUFFICIENT TO CONCLUDE THAT ASSESSEE CONCEALED HIS INCOME OR FURNISHED INACCURATE PARTICULARS. 8. ON SIMILAR FACTS, THE CHENNAI BENCH OF THE TRIBU NAL IN THE CASE OF MRS. N. MEENAKSHI, 319 ITR 262, THE PENALTY HAS BEEN DELETE D. IN THIS CASE ALSO THE ADDITION WAS MADE IN VIEW OF PROVISIONS OF SECTION 50C. THE MAT TER REACHED TO THE TRIBUNAL AND THE 4 TRIBUNAL CANCELLED THE LEVY OF PENALTY BY HOLDING T HAT NO INCOME WAS CONCEALED AS NO INACCURATE PARTICULARS WERE FURNISHED. 9. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, WE HOLD THAT LD. CIT (A) WAS JUSTIFIED IN CANCELING THE LEVY OF PENALTY. ACCORD INGLY, THE ORDER OF LD. CIT (A) IS CONFIRMED. 10. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED. 11. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 19 .8.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- THE ACIT, CIRCLE-2, AJMER. LATE SHRI PRATAP CHAND JAIN, L/H SMT. ASHA CHAURDIA , NEW DELHI. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 1074/JP/2010) BY ORDER, AR ITAT JAIPUR.