Hakimuddin Kurban Hussain, Kolkata V. ITO, Ward - 34(3), Kolkata, Kolkata

ITA 1078/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54775 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 09-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P S DUTTA D R
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C

Judgement Text

, ' , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA ( ) . . , , , , , , ) [BEFORE SRI S.V. MEHROTRA, A.M. & SRI MAHAVIR SING H, J.M.] ! ! ! ! / I.T.A NO. 1078/KOL/2011 ASSESSMENT YEAR : 2007-2008 HAKIMUDDIN KURBAN HUSSAIN -VS.- INCOME TAX OFFICER, WARD-34(3), KOLKATA (PAN : AABPQ 0407 C) ( '# /APPELLANT ) ( $%'# / RESPONDENT ) FOR THE APPELLANT ( '# ) : SHRI SUBASH AGARWAL, A.R. FOR THE RESPONDENT ( $%'# ) : SHRI P.S. DUTTA, D.R. &' ( ) * &' ( ) * &' ( ) * &' ( ) * /DATE OF HEARING : 27.12.2011 +, ) * +, ) * +, ) * +, ) * /DATE OF PRONOUNCEMENT : 27.12.2011 - / ORDER PER SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER/ . . , :- THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER OF LD. COMMISSIONER OF INCOME- TAX (APPEALS)-XX, KOLKATA DATED 01.06.2011 FOR THE ASSESSMENT YEAR 2007-08. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED HIS RETURN OF INCOME DECLARING TOTAL INCOME AT RS.3,50,115/-. THE ASSESSING OFFICER NOTI CED THAT THE ASSESESE HAD SOLD LAND SITUATED AT ANKURHAT, DOMJUR, HOWRAH MEASURING AROUND ONE BI GHA AND ONE COTTACH FOR RS.27,00,000/- AND HAD DISCLOSED LONG-TERM CAPITAL GAINS OF RS.22, 03,210/- FROM THE SAID SALE. THE ASSESSING OFFICER NOTICED THAT THE MARKET VALUE OF THIS PROPE RTY WAS FIXED AT RS.61,31,250/- BY THE STAMP DUTY AUTHORITIES THEREFORE, HE REQUIRED THE ASSESSE E TO SHOW-CAUSE AS TO WHY AS PER THE PROVISIONS OF SECTION 50C OF THE INCOME TAX ACT, TH E MARKET VALUE ADOPTED BY STAMP VALUATION AUTHORITY SHOULD NOT BE TAKEN AS SALES CO NSIDERATION RECEIVED BY HIM UNDER SECTION 48 OF THE INCOME TAX ACT, 1961. THE ASSESSEE EXPLAI NED THAT ASSESSEE AND HIS SON WERE THE OWNERS OF TWO ADJACENT PLOTS MEASURING SAME AREA. T HE PURCHASE WAS MADE FOR THE ENTIRE PROPERTY BY ONLY ONE DEED OF SALE FOR BOTH THE LAND S FOR RS.48,00,000/- ONLY (RS.27,00,000/- FOR THE ASSESSEE AND RS.21,00,000/- FOR HIS SON). IT WA S STATED THAT THE STAMP VALUATION AUTHORITY ITA NO. 1078/KOL./2011 2 DETERMINED THE MARKET VALUE EXHORBITANTLY FOR REVEN UE PURPOSES ONLY AND, THEREFORE, OBJECTED TO THE MARKET VALUATION BY STAMP VALUATION AUTHORIT Y. AFTER CONSIDERING THE ASSESSEES SUBMISSIONS, THE ASSESSING OFFICER ADOPTED THE SALE CONSIDERATION AT RS.61,31,250/- AS PER THE PROVISIONS OF SECTION 50C(1) OF THE INCOME TAX ACT, 1961. LD. CIT(APPEALS) DISMISSED THE ASSESSEES APPEAL. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORDS OF THE CASE. ADMITTEDLY, BEFORE THE ASSESSING OFFICER THE ASSESSEE HAD CLAIMED THAT THE STAMP DUTY VALUATION WAS EXORBITANT AND UNDER SUCH CIRCUM STANCES, THE ASSESSING OFFICER SHOULD HAVE MADE REFERENCE TO THE D.V.O. FOR DETERMINING T HE TRUE VALUATION OF THE PROPERTY IN TERMS OF THE PROVISIONS OF SECTION 50C(2) OF THE ACT. WE, THEREFORE, SET ASIDE THE ORDER OF LD. CIT(APPEALS) AND RESTORE THE MATTER BACK TO THE FIL E OF ASSESSING OFFICER FOR MAKING A REFERENCE TO THE D.V.O. FOR DETERMINATION OF FAIR M ARKET VALUE OF THE PROPERTY. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. . / . / . / . / ' 0. ' 0. ' 0. ' 0. 1) 1) 1) 1) 2 22 2 34 34 34 34 56 56 56 56 7 7 7 7 8 8 8 8 9 99 9 ORDER PRONOUNCED IN THE OPEN COURT ON 27/ 12 /2011. & : ; - 27/12/2011. SD/- SD/- [ MAHAVIR SINGH / ] [S.V. MEHROTRA/ ( . . )] JUDICIAL MEMBER/ ACCOUNTANT MEMBER/ DATED : 27/ 12/ 2011 COPY OF THE ORDER FORWARDED TO: 1. HAKIMUDDIN KURBAN HUSSAIN,C/O. M.H. INDUSTRIAL EQUI PMENTS, 17, B.R.B.B. ROAD, GROUND FLOOR, KOLKATA-1. 2 ITO, WARD-34(3), KOLKATA, 18, RABINDRA SARANI, PODD AR COURT, 3 RD FLOOR, KOLKATA-700 001 3. COMMISSIONER OF INCOME-TAX (APPEALS)- , KOLKATA 4. CIT- , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR, I.T.A.T., KOLKATA LAHA, SR. P.S.