Smt. Kiran Mala Jain, Meerut V. ITO, Meerut

ITA 1529/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4870 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Keywords: Valuation report
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.1529/DEL/2017 ASSESSMENT YEAR : 2007-08 KIRAN MALA JAIN, C/O M/S MALIK & CO., 305, THAPAR NAGAR, MEERUT. PAN: AAMPJ8181H VS. ITO, WARD-1(3), MEERUT. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJAY MALIK, ADVOCATE DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 30.08.2017 DATE OF PRONOUNCEMENT : 30.08.2017 ORDER THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 22.12.2016 IN RELATION TO THE ASSESSM ENT YEAR 2007-08. 2. THE FIRST GROUND ASSAILS THE INITIATION OF REASS ESSMENT PROCEEDINGS. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER GOT CIB INFORMATION THAT THE ASSESSEE HAD SOLD PROP ERTY FOR RS.8 LAC ON ITA NO.1529/DEL/2017 2 21.02.2007. THE ASSESSING OFFICER ISSUED NOTICE U/ S 148 AFTER RECORDING THE FOLLOWING REASONS:- AS PER CIB INFORMATION RECEIVED IN THIS OFFICE, AS SESSEE HAD SOLD IMMOVABLE PROPERTY IN F.Y. 2006-07, RELEVANT TO THE A.Y. 2007-08, AS DETAILED BELOW: S.NO. DATE OF REGISTRATION OF SALE DEED DESCRIPTION OF PROPERTY REGISTE RED SALE PRICE IN RS. LAKH SALE PRICE AS ASSESSED BY REGISTER/SUB REGISTER FOR STAMP DUTY PURPOSES IN RS. LAKH DIFFERENCE BETWEEN SALE PRICE ADOPTED FOR STAMP DUTY AND SALE CONSIDERATION . 1 2 3 4 5 21/02/2007 PLOT NO.25, AREA 137.91 SQ. MT. 40000 621000 221000 21/02/2007 PLOT NO.25 AREA 137.91 SQ. MT. 40000 620775 220775 IN ABSENCE OF PAN, INFORMATION REGARDING FILING OF RETURN FOR A.Y. 2007-08 IS NOT AVAILABLE. THIS REFLECTS THAT NO CA PITAL GAIN HAS BEEN DECLARED BY THE ASSESSEE ON ABOVE MENTIONED SALE OF PROPERTY. IN VIEW OF ABOVE, I HAVE REASONS TO BELIEVE THAT CAPIT AL GAIN ARISING ON SALE OF ABOVE MENTIONED PROPERTY HAS ESCAPED ASSESS MENT WITHIN THE MEANING OF SEC.147 OF IT ACT FOR A.Y. 2007-08 A ND SUCH CAPITAL GAIN IS OBVIOUSLY MORE THAN RS.1 LAC, AS PER COLUMN 5 OF ABOVE GIVEN TABLE. ISSUE NOTICE U/S 148 SD/-. (D.K. MITTAL INCOME TAX OFFICER, WARD 1(3), MEERUT. DATED: 18/03/2014 ITA NO.1529/DEL/2017 3 4. ON THE BASIS OF THE VALUATION REPORT, THE ASSESS ING OFFICER MADE ADDITION OF RS.4,65,570/-. THE LD. CIT(A) UPHELD TH E INITIATION OF RE- ASSESSMENT. THE ASSESSEE IS AGGRIEVED AGAINST THE I NITIATION OF REASSESSMENT. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED FROM THE REASONS RECORDED BY THE ASSESSING OFFICER BEFORE ISSUING NOTICE U/S 148 THA T HE RECEIVED CIB INFORMATION ABOUT SALE OF IMMOVABLE PROPERTY BY THE ASSESSEE. THE ASSESSING OFFICER INITIATED REASSESSMENT PROCEEDING S ON THE PREMISE THAT NO CAPITAL GAIN WAS DECLARED BY THE ASSESSEE ON THE SALE OF THE PROPERTY. IT CAN BE SEEN THAT THE ONLY REASON FOR THE INITIAT ION OF REASSESSMENT IS THAT THE ASSESSEE HAD NOT DECLARED ANY CAPITAL GAIN ON THE SALE OF PROPERTY SHOWN AT RS.8 LAC. A COPY OF RETURN FILED BY THE AS SESSEE IS AVAILABLE AT PAGE 64 OF THE PAPER BOOK. PAGE 65 IS COMPUTATION OF INCOME ACCOMPANYING THE RETURN. THE ASSESSEE COMPUTED INC OME FROM CAPITAL GAIN IN THE COMPUTATION OF INCOME ON SALE OF THIS P ROPERTY AS UNDER:- ITA NO.1529/DEL/2017 4 LONG TERM CAPITAL GAIN PLOT NO.25 SECTOR 3, VIDHYA NAGAR, SHASTRI NAGAR 23 /02/07 SALES CONSIDERATION LESS: INDEXED COST PURCHASE PRICE F.Y. 2003-04 628350/463*519 B/F LONG TERM CAPITAL GAIN 704349 _________ 800000 704349 95651 -82693 6. IT CAN BE SEEN FROM THE COMPUTATION OF TOTAL INC OME FILED BY THE ASSESSEE ALONG WITH THE ORIGINAL RETURN OF INCOME O N 31.08.2007 THAT SHE DID DECLARE CAPITAL GAIN ON SALE OF PROPERTY WITH T HE REGISTERED SALE PRICE AT RS.8 LAC. IT, THUS, BECOME MANIFEST THAT THE R EASONS FOR INITIATION OF REASSESSMENT, BEING, NON-DECLARATION OF CAPITAL GA IN BY THE ASSESSEE ON THE SALE OF PROPERTY AT RS.8 LAC, ARE MISCONCEIVED. ONCE THE INITIATION OF REASSESSMENT IS FOUNDED ON REASONS WHICH DO NOT EXI ST, THE EDIFICE OF REASSESSMENT HAS TO FALL. ANY EVENT SUBSEQUENT TO THE RECORDING OF REASON CANNOT BE TAKEN COGNIZANCE OF FOR TESTING TH E VALIDITY OF INITIATION OF REASSESSMENT, WHICH HAS TO BE DONE SOLELY ON THE BASIS OF THE REASONS RECORDED. IT IS, THEREFORE, CLEAR THAT THE REASONS RECORDED BY THE ASSESSING OFFICER FOR INITIATING REASSESSMENT PROCE EDINGS DO NOT SURVIVE. ITA NO.1529/DEL/2017 5 THE INITIATION IS, THEREFORE, HELD TO BE BAD IN LAW AND THE RESULTANT PROCEEDINGS ARE SET ASIDE. THIS GROUND GETS ACCEPTE D. 7. IN THE RESULT, THE APPEAL IS ALLOWED. THE DECISION PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 30 TH AUGUST, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.