The ITO, Ward-9(3), Surat V. Shri Ravjibhai Nagjibhai Thesia, Surat

ITA 1164/AHD/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94687 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-11-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 29-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR BANWARI LAL
• Assessee Lawyers: M K PATEL
• Keywords: Sale consideration of property below Jantri Value
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: S H RI ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER INCOME TAX OFFICER, WARD - 9(3), ROOM NO. 420, 4 TH FLOOR, AAYAKAR BHAVAN, MAJURA GATE, SURAT (APPELLANT) VS SHRI RAVJIBHAI NAGJIBHAI THESIA A - 44, SAIFEE SOCIETY, L. H. ROAD, SURAT PAN: ACSPT8965F (RESPONDENT) R EVENUE BY : DR. BANWARI LAL, CIT - D . R. ASSESSEE BY: S H RI M.K. PATEL , A.R. DATE OF HEARING : 17 - 11 - 2 015 DATE OF PRONOUNCEMENT : 18 - 11 - 2 015 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THIS R EVENUE S APPEAL FOR A.Y. 2006 - 07 , AR ISES FROM ORDER OF THE CIT(A) - V, SURAT DATED 28 - 02 - 2012 IN APPEAL NO. CAS/V/206/11 - 12 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 1164 / A HD/20 12 A SSESSMENT YEAR 200 6 - 07 I.T.A NO. 1164 /AHD/20 12 A.Y. 2006 - 07 PAGE NO ITO VS. SHRI RAVJIBH A I NAGJIBH A I THESIA 2 2. THE REVENUE S SOLE SUBSTANTIVE GROUND CHALLENGES THE LOWER APPELLATE ORDER RESTRICTING ADDITION OF UNDISCLOSED INCOME OF RS. 2,17,70,600/ - MADE U/S. 50C OF THE ACT ARISING FROM SALE OF LAND SOLD TO RS. 24,15,000/ - AS DETERMIN ED BY THE DVO IN HIS REPORT SUBMITTED BEFORE CIT(A). FACTS OF THE CASE ARE IN A NARROW COMPASS. THE AS SESSEE SOLD HIS LANDS IN SUR. NO . 602, 686, 688 AND 689 AT ADAJAN, SURAT CITY FOR RS. 16 LACS. ITS STAMP VALUE/JANTRI PRICE WAS RS. 2,33,70,600/ - AS D ETERMINED BY THE STAMP VALUATION AUTHORITIES. THE ASSESSING OFFICER ACCORDINGLY REOPENED ASSESSEEE S CASE AND MADE THE IMPUGNED UNDISCLOSED INCOME ADDITION OF RS. 2,17,70,600/ - BY INVOKING SECTION 50C IN ORDER DATED 29 - 12 - 2009. 3. THE ASSESSEE FILED APPE AL. HE PLEADED THEREIN THAT THE ASSESSING OFFICER OUGHT TO HAVE MADE A REFERENCE TO THE DVO. THE CIT(A) ACCEPTED THIS PLEA AND SOUGHT DVO S REPORT. THE SAME CAME ON 27 - 12 - 2011 DETERMINING VALUE OF LAND SOLD TO BE RS. 24,15,000/ - I.E. MORE THAN THE DISCL OSED SALE OF RS. 16 LACS AND LESS THAN THE STAMP PRICE OF RS. 2,33,70,600/ - . THE CIT(A) HAS ACCORDINGLY DIRECTED THE ASSESSING OFFICER TO COMPUTE CAPITAL GAINS AS PER DVO S REPORT. THIS LEAVES THE REVENUE AGGRIEVED. 4. WE HAVE HEARD BOTH THE PARTIES. CASE FILE PERUSED. THE REVENUE S ENDEAVOR IS TO RESTORE THE ENTIRE ADDITION SUM OF RS. 2,17,70,600/ - BASED ON JANTRI PRICE OF THE LAND SOLD INSTEAD OF DVO S VALUATION DETERMINING THE SAME TO BE OF RS. 24,15,000/ - (SUPRA). THE HON BLE ALLAHABAD HIGH COU RT IN CASE OF CIT VS. DR. INDRA SWAROOP I.T.A NO. 1164 /AHD/20 12 A.Y. 2006 - 07 PAGE NO ITO VS. SHRI RAVJIBH A I NAGJIBH A I THESIA 3 BHATNAGAR INCOME TAX APPEAL NO. 97 OF 2008 DECIDED ON 29 - 09 - 2011 HOLDS THAT A DVO S VALUATION U/S. 50C(2) BINDS AN ASSESSING OFFICER/REVENUE. NO CASE LAW TO THE CONTRARY IS REFERRED IN THE COURSE OF HEARING. WE FI ND NO FAULT WITH THE LOWER APPELLATE ORDER IN THESE FACTS AND CIRCUMSTANCES. THE CIT(A) S ACTION IN RESTRICTING THE IMPUGNED UNDISCLOSED INCOME ADDITION OF RS. 2,17,70,600/ - TO RS. 24,15,000/ - IS ACCORDINGLY CONFIRMED. 5. THIS REVENUE S APPEAL IS DISMISS ED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 18 - 11 - 2015 SD/ - SD/ - ( ANIL CHATURVEDI ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 18 /11 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,