The ACIT, Circle-2(2), Baroda V. Shri Prabuddha P. Patel, Baroda

ITA 1682/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8086 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 29-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADITYA SHUKLA
• Keywords: Sale consideration of property below Jantri Value; Capital asset; Fair market value
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA NO. 1682/AHD/2014 (ASSESSMENT YEAR: 2009-10) THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), 4 TH FLOOR, AAYAKAR BHAVAN, RACE COURSE CIRCLE, BARODA AP PELLANT VS. SHRI PRABUDDHA P PATEL, 13, CHETAN SOCIETY, AKOTA, BARODA 390020 RE SPONDENT PAN: ACSPP2185K /BY REVENUE : ADITYA SHUKLA, D.R. /BY ASSESSEE : NONE (WRITTEN SUBMISSION) /DATE OF HEARING : 10.11.2017 /DATE OF PRONOUNCEMENT : 29.11.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2009-10 A RISES AGAINST THE CIT(A)-II, BARODAS ORDER DATED 25.02.2014 IN CASE NO. CAB/II-335/11-12, PARTLY REVERSING ASSESSING OFFICERS ACTION MAKING LONG TE RM CAPITAL GAINS ADDITION OF RS.3,08,61,800/- AFTER INVOKING SECTION 50C OF THE ACT THEREBY TAKING FAIR MARKET ITA NO. 1682/AHD/14 [ACIT VS. SHRI PRABUDDHA P PATE L] A.Y. 2009-10 - 2 - VALUE OF ASSESSEES CAPITAL ASSET SOLD AS RS.3,29,3 7,500/-, IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. RELEVANT FACTS ARE IN A VERY NARROW COMPASS. TH ERE IS NO DISPUTE THAT THE ASSESSEE HAS SOLD HIS CAPITAL ASSET IN QUESTION RES ULTING IN CONSEQUENTIAL LONG TERM CAPITAL GAINS COMPUTED OF RS.40,00,345/- AT THE FIR ST INSTANCE. THE ASSESSING OFFICER SOUGHT TO APPLY JANTRY RATE THEREOF U/S.50C OF THE ACT. THE ASSESSEE PLEADED IN RESPONSE THAT HE COULD NOT FETCH THE ABOVE JANTR Y PRICE SINCE THE CAPITAL ASSET IN QUESTION SOLD IN THE RELEVANT PREVIOUS YEAR FACED A LOT OF LITIGATION UPTO THE REVENUE TRIBUNAL REGARDING GANOTIYAS RIGHTS FORMING A DIST RESSING FACTOR. HE PRODUCED ON RECORD THE RELEVANT EVIDENCE AS WELL TO THIS EFFECT . THE ASSESSING OFFICER REJECTED ALL THE SAID EXPLANATION TO COMPUTE ASSESSEES LONG TERM CAPITAL GAINS ADDITION OF RS.3.08CRORES AFTER TAKING FAIR MARKET VALUE OF THE CAPITAL ASSET SOLD AS RS.3.29 CRORES U/S.50C OF THE ACT IN ASSESSMENT ORDER DATED 22.12.2011. 3. THE ASSESSEE PREFERRED APPEAL. THE CIT(A) APPOI NTED A DVO U/S.50C (2) OF THE ACT. THE SAID VALUATION OFFICERS REPORT/ORDER DATED 29.01.2014 DETERMINED FAIR MARKET VALUE OF ASSESSEES CAPITAL ASSET AS RS .1870/- PER SQ.MTR. COMING TO RS.72,46,250/-. THE ASSESSEE FILED OBJECTION THERE TO. THE CIT(A) REJECTS THE SAME IN HIS LOWER APPELLATE ORDER UNDER CHALLENGE. HE T HEREFORE DIRECT THE ASSESSING OFFICER TO TAKE ASSESSEES FAIR MARKET VALUE AS PER DVOS REPORT HEREINABOVE. THIS LEAVES THE REVENUE AGGRIEVED. 4. THE ASSESSEE HAS NOT COME PRESENT DESPITE THE FA CT THAT THE REGISTRY HAS BEEN SENDING HIM RPAD NOTICES. LEARNED DEPARTMENTAL REP RESENTATIVE STRONGLY ARGUES THAT THE CIT(A) HAS ERRED IN REDUCING FAIR MARKET V ALUE OF ASSESSES CAPITAL ASSET IN LINE WITH THE DVOS REPORT HEREINABOVE. WE FIND NO MERIT IN REVENUES INSTANT ARGUMENT. HONBLE JURISDICTIONAL HIGH COURTS JUDG MENT IN PCIT VS. RAJABHAI L. HADIYA (2016) 237 TAXMAN 528 (GUJ.) HOLDS THAT THE DVOS REPORT IN SUCH A CASE OF SECTION 50C APPLICATION VERY WELL BINDS THE REVENUE. WE THEREFORE SEE NO ITA NO. 1682/AHD/14 [ACIT VS. SHRI PRABUDDHA P PATE L] A.Y. 2009-10 - 3 - MERIT IN REVENUES INSTANT GRIEVANCE. THE CIT(A)S ORDER UNDER CHALLENGE IS ACCORDINGLY CONFIRMED. 5. THIS REVENUES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 29 TH DAY OF NOVEMBER, 2017.] SD/- SD/- (PRADIP KUMAR KEDIA) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL M EMBER AHMEDABAD: DATED 29/11/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0