Babu Philip, CHENNAI V. ACIT Non Corporate Circle 7(1), CHENNAI

ITA 1362/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9029 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 24-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A SUNDARARAJANADDL
• Assessee Lawyers: ARUN KURIAN JOSEPH
• Keywords: Opportunity of being heard; Principle of natural justice; Cost of acquisition; Fair market value; Valuation report; Capital Gains
• Section: 201; 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO S . 1 362 /CHNY/ 201 8 / ASSESSMENT YEAR: 201 2 - 13 SHRI BABU PHILIP, W - 101, II AVENUE, ANNA NAGAR, CHENNAI 600 0 40 [PAN: A ETPB 4465M ] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX NON - CORPORATE CIRCLE - 7(1), CHENNAI 600 034 ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. ARUN KURIAN JOSEPH , ADV OCATE /RESPONDENT BY : M R . A. SUNDARARAJAN, ADD L .CIT / DATE OF HEARING : 02 . 01.2020 / DATE OF PRONOUNCEMENT : 02. 01 .20 20 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) - 7 , CHENNAI I N ITA NO. 22/CIT(A) - 7/2015 - 16 DATED 2 8 .0 2 .201 8 FOR THE ASSESSMENT YEAR 201 2 - 1 3 . 2. MR. ARUN KURIAN JOSEPH, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND MR. A. SUNDARARAJAN, AD D ITIONAL CIT REPRE SENTED ON BEHALF OF THE R EVENUE . ITA NO. 1 362 / CHNY / 201 8 : - 2 - : 3 . IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ISSUE IN THE ASSESSEES APPEAL WAS ON ACCOUNT OF THE NON - GRANTING OF AN OPPORTUNITY TO HAVE THE PROPERTY SOLD BY THE ASSESSEE VALUED B Y THE DVO FOR DETERMINING THE FAIR MARKET VALUE AS ON 01.04.1981 . IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ASSESSEE HAD SOLD A PROPERTY AT THIRUVANMIYUR AND ANOTHER PROPERTY AT VELACHERY. IN RESPECT OF THE PROPERTY AT THIRUVANMI YUR, THE ASSESSEE HAD CLAIMED THE COST OF ACQUISITION AT RS.82.50 PER SQ.FT AND HAD COMPUTED THE CAPITAL GAINS. IT WAS A SUBMISSION THAT THE ASSESSEE HAD PRODUCED THE ASSESSEES VALUATION REPORT DATED 07.04.2015 BUT THE ASSESSMENT HAD ALREADY BEEN COMPLET ED BY 16.0 3 .2015. IT WAS A SUBMISSION THAT EVEN BEFORE THE ASSESSEE COULD PRODUCE ANY EVIDENCE TO SUBSTANTIATE HIS CLAIM, THE ASSESSMENT HAD BEEN COMPLETED. IT WAS A PRAYER THAT THE ISSUE IN THE APPEAL MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION AND ALSO AFTER OBTAINING THE DVOS REPORT IN REGARD TO THE COST OF ACQUISITION. 4. IN REPLY, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT HE HAD NO OBJECTION IF THE ISSUES WERE RESTORED TO THE FILE OF THE ASSESSING OFFICER F OR RE - ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE MATERIALS AVAILABLE ON RECORD . ITA NO. 1 362 / CHNY / 201 8 : - 3 - : 6. A PERUSAL OF THE FACTS IN THE PRESENT CASE CLEARLY SHOWS THAT THE VALUATION REPORT OF THE APPROVED VALUER AS PRODUCED BY THE ASSESSEE IS DATED 07.04.2015, WHEREAS THE ASSESSMENT HAS BEEN COMPLETED ON 16.03.2015. THE PERUSAL OF THE ASSESSMENT ORDER CLEARLY SHOWS THAT THE ASSESSEE NEVER HAD AN OPPORTUNITY TO REBUT THE VALUATION OF THE FAIR MARKET VALUE AS HAS BEEN ARRIVED BY THE ASSESSING OFFICER. IN THE CIRCUMSTANCES, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ISSUE S IN THE APPEAL SHOULD BE RESTORED TO THE FILE OF THE ASSESSING FOR RE - ADJUDICATION AFTER GRANTI NG THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD AND WE DO SO. THE ASSESSING OFFICER IS ALSO DIRECTED THAT IF NECESSARY THE FAIR MARKET VALUE OF THE PROPERTY IS TO BE DETERMINED BY HAVING THE SAME VALUED BY THE DVO. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND JANUARY , 20 20 IN CHENNAI. SD/ - ( ) (INTURI RAMA RAO) / ACCOUNTANT MEMBER / CHENNAI, / DATED: 2 ND JANUARY , 2 020 IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / COPY TO: 1. / A PPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF