Mohammed Zaheeruddin , Hyderabad V. Income Tax Officer, Ward-14(4), Hyderabad

ITA 1288/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7067 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 16-10-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 16-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R S ARVINDAKSHAN
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Valuation report; Capital Gains
• Section: 143(3); 50C; 142(1); 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1288/HYD/2019 ASSESSMENT YEAR: 2006 - 07 SRI MOHAMMED ZAHEERUDDIN, HYDERABAD. PAN: AMXPM 9142 N VS. INCOME TAX OFFICER, WARD - 14(4), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. S. SANDHYA, AR REVENUE BY: SRI R.S. ARVINDAKSHAN, DR DATE OF HEARING: 16/10/2019 DATE OF PRONOUNCEMENT: 18 /10/2019 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 6, HYDERABAD IN APPEAL NO. 10711/2018 - 19/B2/CIT(A) - 6, DATED 06/06/2019 PASSED U/S. 143(3) R.W.S 254 & U/S. 250(6) OF THE ACT FOR THE ASSESSMENT YEAR 2006 - 07. 2. THE ASSESSEE HAS RAISE D THREE GROUNDS IN HIS APPEAL, HOWEVER, THE CRUX OF THE ISSUE IS THAT THE LD. CIT (A) HAS ERRED IN NOT OBTAINING THE VALUATION REPORT FROM THE DVO WHILE CONFIRMING THE ORDER OF THE LD. AO WHO HAD ASSESSED LTCG OF RS. 16,47,800 IN THE HANDS OF THE ASSESSEE WITH RESPECT TO SALE OF HIS IMMOVABLE PROPERTY. 2 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL WH O HAD SOLD HIS LAND AND NOT OFFERED CAPITAL GAINS. SUBSEQUENTLY , ASSESSMENT WAS COMPLETED U/ S. 144 OF THE ACT ON 31/3/2013 BY ADOPTING THE FAIR MARKET VALUE AS PER THE SRO SINCE THE ASSESSEE HAD NOT COMPLIED WITH THE NOTICE ISSUED U/S. 142(1) OF THE ACT. ON APPEAL, THE LD. CIT (A) UPHELD THE ORDER OF THE LD. AO VIDE ORDER DATED 26/2/2016. ON FU RTHER APPEAL, THE ITAT VIDE ORDER DATED 7/8/2017 REMITTED THE ENTIRE MATTER TO THE FILE OF LD. AO WITH A DIRECTION TO PROVIDE OPPORTUNITY OF HEARING TO THE ASSESSEE. BEFORE THE LD. AO ON THE SECOND OCCASION, THE ASSESSEE REQUESTED FOR REFERRING THE MATTER TO THE LD. DVO FOR VALUING THE PROPERTY. HOWEVER, THE LD. AO REJECTED THE REQUEST OF THE ASSESSEE AND THEREAFTER COMPUTED THE LTCG AT RS. 16,47,800/ - INVOKING THE PROVISIONS OF SECTION 50C(2) OF THE ACT. 4. AT THE OUTSET, LD . AR SUBMITTED THAT THE LD. A O HAS ERRED BY NOT REFERRING THE MATTER TO THE LD. DVO FOR VALUATION OF THE PROPERTY AND HENCE IT WAS PLEADED THAT THE MATTER REMITTED BACK TO THE FILE OF THE LD. AO WITH DIRECTIONS TO REFER THE VALUATION OF THE LAND TO THE LD. DVO AND THEREAFTER PASS APPR OPRIATE ORDER IN ACCORDANCE WITH MERIT AND LAW. THE L D. DR VEHEMENTLY OPPOSED TO THE SUBMISSION OF THE LD. AR. 5. I HAVE HEARD THE RIVAL SUBMISSION AND CAREFULLY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE IT IS APPARENT THAT THE ASSESSEE DURING HIS SECOND OPPORTUNITY BEFORE THE LD. AO HAD REQUESTED 3 THE LD. AO FOR REFERRING THE MATTER TO THE LD. DVO FO R OBTAINING THE VALUE OF THE LAND SOLD BY HIM B ECAUSE, THE LD. AO HAD INVOKED THE PROVISIONS OF SECTION 50C OF THE ACT. WHEN THE ASSESSEE HAD MADE SUCH REQUEST, BY VIRTUE OF SECTION 50C(2) OF THE ACT IT IS MANDATORY ON THE PART OF THE LD. AO TO REFER THE VALUATION OF THE LAND SOLD BY THE ASSESSEE TO THE LD. DVO. HOWEVER, IN THE INSTANT CASE, THE LD. AO HAS GROSSLY FAILED TO DO SO. SUCH IRRESPONSIBLE ACTION OF THE LD. AO IS NOT APPRECIABLE. ON APPEAL, THE LD. CIT (A) HAS REMANDED THE MATTER TO THE FILE OF LD. AO WITH DIRECTIONS TO REFER THE VALUATION OF THE LAND SOLD BY THE ASSESSEE TO THE LD. DVO. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND SINCE THE LD. CIT (A) DO NOT HAVE POWERS TO REMAND THE MATTER BACK TO THE FILE OF LD. AO , I HEREBY REMIT THE MATTER BACK TO THE FILE OF THE LD. AO FOR FRESH CONSIDERATION AND WITH DIRECTION TO REFER THE MATTER TO THE LD. DVO FOR VALUING THE PROPERTY SOLD BY THE ASSESSEE AND THEREAFTER COMPUTE THE LTCG IN THE HANDS OF THE ASSESSEE IN ACCORDANCE WITH MERIT AN D LAW. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. PRONOUNCED IN THE OPEN COURT ON 18 TH OCTOBER, 2019. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED : 18 TH OCTOBER , 2019 4 OKK COPY TO: - 1) MOHAMMED ZAHEERUDDIN, 9 - 4 - 87/84, OWAISI COLONY, TOLICHOWKI, HYDERABAD. 2) INCOME TAX OFFICER, WARD - 14(4), IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD. 3) THE CIT(A) - 6, HYDERABAD 4) THE PR. CIT - 6, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE