ACIT, Circle-23(1), Hooghly, Hooghly V. M/s. GRS Construction, Hooghly

ITA 1292/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2409 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 28-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: D.B.THAKUR
• Keywords: Sale consideration of property below Jantri Value; Value adopted by valuation officer; Additional evidence; Valuation report
• Section: 50C; 201; 20

Judgement Text

1 ITA NO. 1292/KOL/2019 AY 2015 - 16 M/S. GRS CONSTRUCTION IN THE INCOME TAX APPELLATE TRIBUNAL C KOLKATA [BEFORE SHRI A. T. VARKEY, JM & DR. (SHRI) ARJUN LAL SAINI, AM ] I .TA NO. 1292/ KOL/201 9 A.Y 201 5 - 16 ACIT, CIRCLE - 23(1), HOOGHLY VS. M/S. GRS CONSTRUCTION PAN: AAFFG1355D APPELLANT RESPOND ENT DATE OF HEARING 1 9 - 02 - 2020 DATE OF PRONOUNCEMENT 18.03 . 20 20 FOR THE APPELLANT S MT. RANU BISWAS, ADDL. CIT, LD. DR FOR THE RESPONDENT SHRI D.B.THAKUR, ADVOCATE, LD. AR ORDER SHRI A. T. VARKEY, JM TH IS APPEAL I S PREF ERRED BY THE REVENUE AGAINST THE ORDER OF LD. C I T (APPEALS) , 6 , KOLKATA DATED 14 - 03 - 2019 FOR THE ASSESSMENT YEAR 20 1 5 - 16. 2. THE GROUNDS OF APPEAL PREFERRED BY THE REVENUE ARE AS UNDER: - 1. THAT THE LD. CIT(A) - 6, KOLKATA ERRED ON FACTS AND IN LAW IN GIVING RELIEF BY ACCEPTING THE CUMULATIVE VALUE REPORT OF DVO PRODUCED BY ASSESSEE AS SALE CONSIDERATION INSTEAD OF STAMP DUTY. 2. THAT THE LD. CIT(A) - 6, KOLKATA ERRED ON FACTS AND IN LAW FOR ACCEPTING THE ADDITIONAL EVIDENCE WITHOUT GIVING OPPORTUNITY TO A.O., IN VIOLATION OF INCOME TAX RULE 46A OF 1962. 3. THAT YOUR PETITIONER CRAVES LEAVE TO ADDUCE FURTHER GROUND/GROUNDS AT THE TIME OF AND/OR BEFORE HEARING OF ITS APPEAL. 3. FROM PERUSAL OF THE ABOVE GROUNDS OF APPEAL, IT REVEALS THAT THE REVEN UE IS AGGRIEVED WITH THE ACTION OF THE LD. CIT(A) IN GIVING RELIEF TO THE ASSESSEE BY ACCEPTING THE CUMULATIVE VALUE REPORT OF DVO PRODUCED BY THE ASSESSEE AS SALE CONSIDERATION INSTEAD OF STAMP DUTY VALUE IN VIOLATION OF INCOME TAX RULE 46A OF 1962 ( IN SHORT, HEREINAFTER THE RULES ) . 4. BRIEF FACTS OF THE CASE AS NOTED BY THE LD. CIT(A) ARE THAT DURING THE AY UNDER CONSIDERATION THE ASSESSEE HAD SOLD THREE PROPERTIES FOR A TOTAL CONSIDERATION OF 2 ITA NO. 1292/KOL/2019 AY 2015 - 16 M/S. GRS CONSTRUCTION RS. 1,00,00,000/ - , WHEREAS, THE REGISTERING AUTHORITY VAL UED THE SAME AT RS. 5,43,33,013/ - , THEREBY ATTRACTING THE PROVISIONS OF SECTION 50C OF THE INCOME - TAX ACT, 1961 ( IN SHORT, HEREIN AFTER REFERRED TO THE ACT ) TO AN EXTENT OF RS. 4,43,33,013/ - , WHICH THE AO HAS ADDED TO THE INCOME OF THE ASSESSEE. IT W AS ALSO NOTED BY THE LD. CIT(A) THAT THE VALUATI ON OF THESE THREE PROPERTIES WERE REFERRED TO THE DVO BY THE AO. HOWEVER, THE AO FRAMED THE ASSESSMENT WHILE THE DVOS VALUATION REPORT WAS STILL PENDING. THE LD. CIT(A) FURTHER NOTED THAT DURING THE APPEL LATE PROCEEDINGS BEFORE HIM , THE ASSESSEE PRODUCED A COPY OF REPORT FROM THE DVO DT. 06 - 12 - 2018 FOR THE THREE PROPERTIES [ A COPY OF WHICH HAS ALSO BEEN ENDORSED TO THE AO ]. TAKING NOTE OF THE DVOS REPORT , THE LD. CIT(A) NOTED THAT THE DVO HAS ASCERTAINED THE CUMULATIVE VALUE OF THESE PROPERTIES AT RS. 2 ,56,68,178/ - AGAINST THE VALUE OF RS. 5,43,33,013/ - ASCERTAINED BY THE REGISTRATION AUTHORITY. IN THE LIGHT OF THE SAME (DVOS REPORT) THE LD. CIT(A) DIRECTED THE AO TO RECOMPUTE THE CAPITAL GAIN AFTER T AKING INTO CONSIDERATION THE VALUATION REPORT MADE BY THE DVO. AGGRIEVED, THE REVENUE IS BEFORE US. 5. AFTER HAVING HEARD BOTH THE PARTIES AND ON PERUSAL OF RECORDS, WE NOTE THAT THE FIRST GROUND OF THE REVENUE IS THAT THE LD. CIT(A) HAS GIVEN RELIEF TO THE ASSESSEE BY ACCEPTING THE DVOS REPORT, WHICH IS INCORRECT SINCE THE LD. CIT(A) HAS ONLY REFERRED ABOUT THE DVOS REPORT AND DIRECTED THE AO TO RECOMPUTE THE CAPITAL GAIN IN ACCORDANCE WITH THE LAW IN THE LIGHT OF DVO REPORT . THIS ACTION OF THE LD. CIT(A) CANNOT BE FAULTED. THEREFORE, WE CONFIRM THE SAME. 6. COMING TO VIOLATION OF RULE 46A OF I.T RULES, 1962 IS CONCERNED , WE NOTE THAT THE AO HAD REFERRED THE VALUATION REPORT OF THE PROPERTIES IN QUESTION TO THE DVO. HOWEVER, WITHOUT WAITING FOR TH E DVOS REPORT, HE FRAMED THE ASSESSMENT ON 16 - 11 - 2018. THEREFORE, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A). THE ASSESSEE RECEIVED A COPY OF THE DVOS REPORT DT. 0 6 - 12 - 2018 ( WHICH WAS REFERRED TO THE DVO BY THE AO). SO T HE ASSESSEE HAD TH E RIGHT TO PRODUCE THE SAME BEFORE THE LD. CIT(A). MOREOVER, T HE LD. CIT(A) HAS NOTED THAT A COPY OF THE DVOS REPORT HAS BEEN ENDORSED TO THE AO ALSO . TAKING INTO CONSIDERATION THE SE FACTS AND THE DVOS REPORT , THE LD. CIT(A) HAS REFERRED/DECIDED TO RE MAND THE ISSUE BACK TO THE AO FOR COMPUTATION OF CAPITAL GAIN AND TO ASCERTAIN THE CUMULATIVE VALUE OF THE PROPERTIES AS 3 ITA NO. 1292/KOL/2019 AY 2015 - 16 M/S. GRS CONSTRUCTION PER LAW. THEREFORE, WE DO NOT FIND ANY VIOLATION OF RULE 46A AND THEREFORE, THERE IS NO MERIT IN THE GROUNDS OF APPEAL RAISED BY THE RE VENUE. 7 . IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 - 03 - 2020 SD/ - SD/ - ARJUN LAL SAINI A.T. VARKEY ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 18 MARCH - 2020 * PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT/ REVENUE: THE ACIT, CIRCLE - 23(1), HOOGHL Y, AAYKAR BHAWAN, 2 ND FL., G.T ROAD, KHADINAMORE, CHINSURAH, HOOGHLY. 2 RESPONDENT/ ASSESSEE: M/S. GRS CONSTRUCTION VILL & P.O BAHIRKHANDA,P.S HARIPAL, HOOGHLY - 712405. 3. CIT, 4. CIT(A), KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA **PP/SPS TRUE COPY BY BY ORDER ASSISTANT REGISTRAR ITAT KOLKATA