SMT. KAVITA TAMBI, Jaipur V. INCOME TAX OFFICER, WARD-3-4, Jaipur

ITA 1448/JPR/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9374 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 13-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA JHA CIT DHK
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Valuation report; Set aside
• Section: 54B; 50C

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH B, JAIPUR JH JES'K LH- 'KEKZ] YS[KK LNL; ,O A H JH FOT; IKY JKWO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM VK;DJ VIHY LA-@ ITA NO. 1448/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14. SMT. KAVITA TAMBI, C/O KHANDELWAL SHARMA & CO. CHARTERED ACCOUNTANTS, S-2, IIND FLOOR, ANNAPURNA CHAMBER, OPP. RAILWAY STATION POST OFFICE, JAIPUR. CUKE VS. THE INCOME TAX OFFICER WARD 3(4), JAIPUR . LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AATPT 9521 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MUKESH KHANDELWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA JHA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 25.04.2019. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 01/07/2019. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 05.11.2018 OF LD. CIT (A)-I, JAIPUR FOR THE ASSESSMENT YEAR 2013- 14. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND : THAT THE LD. CIT (A) HAS ERRED SERIOUSLY IN SUSTA INING THE ACTION OF THE LD. DVO AS WELL AS LD. AO IN REJECTING THE O BJECTIONS RAISED BY THE APPELLANT REGARDING VALUATION OF THE LAND SOLD BY HER. RELIEF MAY KINDLY BE GRANTED BY ALLOWING RELIE F FOR SUCH OBJECTIONS. 2. THE ASSESSEE IS AN INDIVIDUAL AND FILED HER RETU RN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 31 ST JULY, 2013 DECLARING TOTAL INCOME OF RS. 22,32,880 /-. THE ASSESSEE SOLD AGRICULTURAL LAND IN KHASRA NOS. 594 AND 595 VILLAGE VINDAYAKA, DISTRICT 2 ITA NO. 1448/JP/2018 SMT. KAVITA TAMBI, JAIPUR. JAIPUR ALONG WITH OTHER CO-OWNERS HAVING 30% SHARE EACH THROUGH SALE DEED DATED 5 TH MARCH, 2013 FOR A CONSIDERATION OF RS. 2,29,00,000 /- IN WHICH ASSESSEES SHARE IS ONE HALF (1/2). THE ASSESSEE HAS DECLARED NIL LONG TERM CAPITAL GAIN AFTER CLAIMING DEDUCTION UNDER SECTION 54B OF THE IT ACT. SINCE T HE LAND WAS VALUED BY THE STAMP DUTY VALUATION AUTHORITY AT RS. 2,89,12,126/-, THE AO PROPOSED TO ADOPT FULL VALUE CONSIDERATION UNDER SECTION 50C OF THE IT ACT. THE ASSESSEE REQUESTED THE AO TO REFER THE VALUATION OF THE LAND TO DVO. ACCORDINGLY , THE CASE WAS REFERRED TO THE DVO BY THE AO AND AFTER RECEIVING THE VALUATION REP ORT DATED 28.12.2015 WHEREIN THE LAND WAS VALUED AT RS. 2,88,30,180/-. THEREFOR E, THE VALUE DETERMINED BY THE DVO BEING LESS THAN THE VALUE ADOPTED BY THE STAMP DUTY VALUATION AUTHORITY WAS ADOPTED AS FULL VALUE CONSIDERATION. HENCE THE AO TAKEN THE FULL VALUE CONSIDERATION AT RS. 1,44,15,090/- IN THE HANDS OF THE ASSESSEE A ND COMPUTED THE CAPITAL GAIN WHICH HAS RESULTED A LONG TERM CAPITAL GAIN OF RS. 29,47,733/- AFTER ALLOWING THE DEDUCTION UNDER SECTION 54B OF RS. 1,02,50,000/-. THE ASSESSEE CHALLENGED THE ADOPTION OF FULL VALUE CONSIDERATION AS PER THE VAL UE DETERMINED BY THE DVO BEFORE THE LD. CIT (A) AND CONTENDED THAT THE DVO HAS NOT DEALT WITH THE OBJECTIONS OF THE ASSESSEE BUT THE SAME WERE REJECTED SUMMARILY. THE LD. CIT (A) CONFIRMED THE ACTION OF THE AO IN TAKING THE FULL VALUE CONSIDERA TION AS THE VALUE DETERMINED BY THE DVO. 3. BEFORE US, THE LD. A/R OF THE ASSESSEE HAS SUBMI TTED THAT THE DVO HAS NOT CONSIDERED THE OBJECTIONS OF THE ASSESSEE WHEREIN T HE ASSESSEE POINTED OUT THAT THERE IS NO PROPER WAY, UNAVAILABILITY OF PROPER WA TER, ELECTRICITY LINE PASSING THROUGH THE LAND ETC. BUT THE DVO HAS NOT APPRECIATED THE S AME. THE LD. A/R HAS FURTHER 3 ITA NO. 1448/JP/2018 SMT. KAVITA TAMBI, JAIPUR. CONTENDED THAT THE DVO HAS DETERMINED THE VALUE ON THE BASIS OF DLC RATES OF THE LAND WITHOUT CONDUCTING ANY INDEPENDENT ENQUIRY OR EXERCISE OF VALUATION. HE HAS NOT CONSIDERED THE ADVERSE FACTORS AFFECTING THE VA LUE OF THE LAND. THE LD. A/R HAS POINTED OUT THAT ANOTHER LAND IN KHASRA NO. 593 OF THE SAME VILLAGE WAS SOLD BY THE ASSESSEE ALONG WITH OTHER TWO CO-OWNERS VIDE SALE D EED DATED 13 TH FEBRUARY, 2012 FOR A TOTAL CONSIDERATION OF RS. 2,81,00,000/- IN W HICH THE ASSESSEES SHARE WAS RS. 84,30,000/-. THE STAMP DUTY VALUATION AUTHORITY AD OPTED THE VALUE OF THE SAID LAND AT RS. 3,30,48,124/-. DURING THE ASSESSMENT PROCEE DINGS FOR THE ASSESSMENT YEAR 2012-13 THE ISSUE OF ADOPTING FULL VALUE CONSIDERAT ION UNDER SECTION 50C WAS ALSO CONSIDERED BY THE AO AND THE MATTER WAS REFERRED TO THE DVO. IN THE SAID MATTER, THIS TRIBUNAL VIDE ORDER DATED 31.08.2017 IN ITA NO . 243/JP/2017 SET ASIDE THE CASE TO THE AO WITH THE DIRECTION TO REFER THE MATTER TO THE DVO FOR VALUATION. IN THE SET ASIDE PROCEEDINGS, THE DVO VALUED THE SHARE OF THE ASSESSEE AT RS. 87,24,700/- AS AGAINST THE SHARE IN THE SALE CONSIDERATION OF RS. 84,30,000/-. THE LD. A/R HAS POINTED OUT THAT IN THE VALUATION REPORT THE DVO HA S ALLOWED BENEFIT OF 12% ON ACCOUNT OF NARROW PASSAGE, UNEVEN SURFACE AND MORE THAN ONE CO-OWNER. A COPY OF THE SAID VALUATION REPORT OF THE DVO FOR THE ASSESS MENT YEAR 2012-13 IS PLACED AT PAGES 8 TO 14 OF THE PAPER BOOK. THUS THE LD. A/R HAS SUBMITTED THAT THE DVO HAS ADOPTED A RATE OF RS. 34,78,750/- PER BIGHA IN RESP ECT OF THE LAND SOLD ON 13.02.2012 WHEREAS HE HAS ADOPTED THE RATE OF RS. 4 3,48,440/- IN RESPECT OF THE LAND SOLD DURING THE YEAR UNDER CONSIDERATION. THU S THE DVO HAS ADOPTED 25% HIGHER RATE AS IT WAS A HIKE IN THE DLC RATE BY THE GOVERNMENT. HENCE THE LD. A/R HAS SUBMITTED THAT IN VIEW OF THE VALUE ADOPTED BY THE DVO FOR THE ASSESSMENT YEAR 4 ITA NO. 1448/JP/2018 SMT. KAVITA TAMBI, JAIPUR. 2012-13 OF A SIMILARLY SITUATED LAND, THE VALUATION FOR THE YEAR UNDER CONSIDERATION DETERMINED BY THE DVO IS CONTRARY TO HIS REPORT FOR THE ASSESSMENT YEAR 2012-13. 4. ON THE OTHER HAND, THE LD. D/R HAS RELIED UPON T HE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE AO REFERRED THE VALUAT ION TO THE DVO AND AFTER RECEIVING THE REPORT OF THE DVO THE FULL VALUE CONS IDERATION WAS ADOPTED AS VALUE DETERMINED BY THE DVO. THE DVO HAS DULY CONSIDERED ALL THE OBJECTIONS RAISED BY THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. THE GRIEVANCE OF THE ASSESSEE IN THE PRESEN T APPEAL IS LIMITED TO THE ISSUE OF DETERMINATION OF FAIR MARKET VALUE BY THE DVO FOR C OMPUTING THE CAPITAL GAIN IN TERMS OF SECTION 50C(2) OF THE IT ACT. THOUGH THE D VO HAS DETERMINED THE VALUE FOR THE YEAR UNDER CONSIDERATION AT RS. 2,88,30,180/-, HOWEVER, AS PER THE VALUATION REPORT IN RESPECT OF THE LAND IN KHASRA NO. 593 WHI CH WAS SOLD DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR 2012-13 THE DV O HAS DETERMINED THE VALUE VIDE REPORT DATED 27 TH DECEMBER, 2018 AT RS. 87,24,700/- AS SHARE OF THE ASSESSEE IN THE SAID LAND. WE FURTHER NOTE THAT THE DVO HAS GIVEN REBATE @ 7% ON ACCOUNT OF NARROW PASSAGE, UNEVEN SURFACE, IRREGULAR SIZE & SHAPE AND FURTHER A REBATE OF 5% WAS GIVEN ON ACCOUNT OF MORE CO-OWNERS. IT APPE ARS THAT BOTH THESE LANDS ARE SITUATED IN THE SAME AREA AND ADJACENT TO EACH OTHE R, THEREFORE, THE REBATE WHICH WAS GIVEN BY THE DVO IN RESPECT OF THE LAND IN KHAS RA NO. 593 WAS NOT GIVEN WHILE DETERMINING THE FAIR MARKET VALUE IN RESPECT OF THE LAND IN KHASRA NOS. 594 & 595. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, WE AR E OF THE CONSIDERED OPINION THAT THE VALUE DETERMINED BY THE DVO WHICH IS INCONSISTE NT TO THE CRITERIA AS ADOPTED BY 5 ITA NO. 1448/JP/2018 SMT. KAVITA TAMBI, JAIPUR. THE DVO FOR DETERMINING THE FAIR MARKET VALUE IN RE SPECT OF THE LAND IN KHASRA NO. 593 WHICH IS VERY MUCH SIMILARLY SITUATED AND ADJAC ENT TO THE LAND IN QUESTION. HENCE THE MATTER IS SET ASIDE TO THE RECORD OF THE AO/DVO FOR CONSIDERING THE ISSUE OF DETERMINATION OF FAIR MARKET VALUE AFRESH AFTER TAKING INTO CONSIDERATION THE VALUATION REPORT DATED 27 TH DECEMBER, 2018 AS WELL AS OTHER OBJECTIONS RAISED BY THE ASSESSEE. THE ASSESSEE BE GIVEN A PROPER OPPORTUNI TY OF HEARING. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 01/07/2 019. SD/- SD/- ( JES'K LH- 'KEKZ ) ( FOT; IKY JKWO (RAMESH C. SHARMA ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 01/07/2019. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SMT. KAVITA TAMBI, JAIPUR. 2. THE RESPONDENT THE ITO WARD 3(4), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1448/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 6 ITA NO. 1448/JP/2018 SMT. KAVITA TAMBI, JAIPUR.