Mrs. Shashi Dhawan, Hyderabad V. DCIT, Cir-5(1), Hyderabad

ITA 1251/HYD/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1404 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-06-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 30-06-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Keywords: Sale consideration of property below Jantri Value; Fair market value
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, J.M. AND SHRI B.R.BASKARAN, A.M. ITA NO.1251/HYD/2011 (ASSESSMENT YEAR 20 07-08) MRS. SHASHI DHAWAN, HYDERABAD ( PAN - ABBPD 9082 E) V/S. DY. COMMISSIONER OF INCOME - TAX CIRCLE 5(1), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MOHD. AFZAL RESPONDENT BY : MS. AMISHA S.GUPT DATE OF HEARING 3.1 .201 3 DATE OF PRONOUNCEMENT 4.1.2013 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 27- 05-2011 PASSED BY LEARNED CIT(A)-V, HYDERABAD AND I T RELATES TO THE ASSESSMENT YEAR 2007-08. THE SOLITARY ISSUE URGED IN THIS APP EAL IS ABOUT THE ADOPTION OF SALE VALUE OF THE PROPERTY AS PER PROVISIONS OF SEC. 50C OF THE ACT. 2. THE FACTS RELATING TO THE SAID ISSUE ARE S TATED IN BRIEF. THE ASSESSEE SOLD A HOUSE PROPERTY DURING THE YEAR UNDER CONSIDE RATION. THE SALE CONSIDERATION AS PER THE SALE DEED WAS RS.44.00 LAK HS. THE ASSESSING OFFICER NOTICED THAT THE VALUE ADOPTED BY THE STAMP AUTHORI TY WAS RS.55,90,000/-. HENCE, BY APPLYING THE PROVISIONS OF SEC. 50C OF TH E ACT, THE ASSESSING OFFICER ITA NO.1251/HYD/2011 MRS. SHASHI DHAWAN, HYDERABAD 2 TOOK THE VALUE OF SALE CONSIDERATION AT RS.55.90 LA KHS AND DETERMINED THE INCOME ACCORDINGLY. 3. BEFORE LEARNED CIT(A), THE ASSESSEE PLACED RELIANCE ON THE DECISION OF HYDERABAD BENCH OF ITAT IN THE CASE OF SRI B. R AMACHANDRA RAO FOR THE AY 2005-06 IN ITA NO.970/HYD/2009, WHEREIN THE TRIBUNA L HAS OBSERVED THAT, IN THE INTEREST OF JUSTICE, VALUATION MUST BE DONE BY THE VALUATION OFFICER WHEREVER THE ASSESSEE OBJECTS TO THE ADOPTION OF SRO RATES. ACC ORDINGLY, A REMAND REPORT WAS CALLED FROM THE ASSESSING OFFICER BY LEARNED CIT(A) . THE ASSESSING OFFICER REFERRED THE MATTER OF DETERMINATION OF FAIR MARKET VALUE TO THE VALUATION OFFICER. THE VALUATION OFFICER FORWARDED HIS REPORT BY A LET TER DATED 26-04-2011, WHERE IN HE HAS STATED THAT THE IMPUGNED PROPERTY WAS PROPOS ED TO BE VALUED BY HIM AT RS.55.90 LAKHS AND AFTER CONSIDERING THE OBJECTIONS RAISED BY THE ASSESSEE, HE HAS DETERMINED THE FAIR MARKET VALUE OF THE PROPERTY AT RS.48,10,866/-. ACCORDINGLY, THE LEARNED CIT(A) DIRECTED THE ASSESSING OFFICER TO DETERMINE THE CAPITAL GAIN BY ADOPTING THE FAIR MARKET VALUE AT RS.48,10,566/-. STILL AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE ASSESSEE HAD FURNISHED VARIOUS DEFICIENCIES ATTACHED TO THE IMPUGNED PROPERTY LIKE (A) THE PROPERTY WAS LOCATED IN A NARROW DEAD END LAND, (B) THE ASSESSEE WAS CONSTRAINED TO SELL THE PROPERTY DUE TO HER OLD AGE UNDER DISTRESS, (C) THE PROPERTY WAS SOLD TO THE TENANT, WHO REFUSED TO VACATE THE P ROPERTY, (D), THE AREA OF THE PROPERTY WAS INTENDED TO BE REDUCED DUE TO TINKERIN G OF ROAD, (E) THE PROPERTY WAS NOT IN ACCORDANCE WITH VASTHU SASTRA ETC. HE F URTHER SUBMITTED THAT THE VALUATION OFFICER HAS DETERMINED THE VALUE AT RS.48 .10 LAKHS BY STATING THAT HE HAS CONSIDERED ALL THE OBJECTIONS. HOWEVER, HE HAS NOT ADDRESSED EACH OF THE OBJECTIONS AND THEIR EFFECT ON THE VALUE OF THE PRO PERTY. ITA NO.1251/HYD/2011 MRS. SHASHI DHAWAN, HYDERABAD 3 5. ON THE CONTRARY, THE LEARNED D.R SUBMITTE D THAT THE VARIOUS OBJECTIONS MADE BY THE ASSESSEE WERE IN THE FORM OF GENERAL SUBMISSIONS AND THE ASSESSEE HAS FAILED TO SUBSTANTIATE THE SAME. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PE RUSED THE RECORD. IT IS NOT DISPUTED THAT THE VALUATION OFFICER HAS DETERMI NED THE VALUE AT RS.48.10 LAKHS AS AGAINST THE VALUE OF RS.55.90 LAKHS DETERMINED B Y THE STAMP AUTHORITY. THE VALUATION OFFICER HAS ALSO STATED IN HIS LETTER DAT ED 26-04-2011 THAT HE ORIGINALLY PROPOSED A VALUE OF RS.55.90 LAKHS AND FINALLY DETE RMINED THE SAME AT RS.48.10 LAKHS AFTER CONSIDERING THE OBJECTIONS RAISED BY TH E ASSESSEE. THUS, IT IS SEEN THAT THE VALUATION OFFICER HAS CONSIDERED THE VARIOUS OB JECTIONS RAISED BY THE ASSESSEE. AS SUBMITTED BY THE LEARNED D.R, THE ASSESSEE HAS F AILED TO SUBSTANTIATE HER OBJECTIONS AND PARTICULARLY THE EFFECT OF THE VARIO US DEFECTS ON THE SALE VALUE OF THE PROPERTY. ON THE OTHER HAND, THE VALUATION OFF ICER HAS GIVEN A REPORT THAT HE HAS CONSIDERED THE VARIOUS OBJECTIONS RAISED BY THE ASSESSEE. UNDER THESE CIRCUMSTANCES, WE DO NOT FIND ANY REASON TO INTERFE RE WITH THE DECISION OF LEARNED CIT(A) IN ADOPTING THE VALUE DETERMINED BY THE VALU ATION OFFICER. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 4.1.2013 SD/- SD/- ( ASHA VIJAYARAGHAVAN ) ( B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED/- 4TH JANUARY, 2013 COPY FORWARDED TO: 1. MRS. SHASHI DHAWAN, C/O. MOHD. AFZAL, ADVOCATE, 121 -5-475 SHERSON'S RESIDENCY, FLAT NO.402, CRIMINAL COURT RO AD, RED HILLS, HYDERABAD 500 004. ITA NO.1251/HYD/2011 MRS. SHASHI DHAWAN, HYDERABAD 4 2. 3. 4. 5. DY. COMMISSIONER OF INCOME - TAX CIRCLE 5(1), HYDERABAD COMMISSIONER OF INCOME-TAX V, HYDERABAD COMMISSIONER OF INCOME-TAX IV, HYDERABAD DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.