Amarendra Kumar Pal, Paschim Medinipore V. I.T.O.,Ward-38(3), Medinipore

ITA 1694/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0219 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 18-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Keywords: Gift; Cost of acquisition; Valuation report; Set aside; Capital Gains

Judgement Text

1 ITA NO. 1694/KOL/2019 AMARENDRA KR. PAL, AY- 2014-1 5 , B(SMC) , IN THE INCOME TAX APPELLATE TRIBUNAL B(SMC) BENCH : KOLKATA ( ) . . , ) [BEFORE SHRI A. T. VARKEY, JM] ITA NO.1694/KOL/2019 ASSESSMENT YEAR: 2014-15 AMARENDRA KR. PAL (PAN: AFTPP3209A) VS. INCOME-TAX OFFICER, WARD-38(3), KOLKATA APPELLANT RESPONDENT DATE OF HEARING 28.11.2019 DATE OF PRONOUNCEMENT 31.12.2019 FOR THE APPELLANT SHRI ANIL KOCHAR, ADVOCATE FOR THE RESPONDENT SHRI JAYANTA KHANRA, JCIT, SR. D R ORDER THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-11, KOLKATA DATED 18-04-2019 FOR THE ASSESSMENT YEAR 2014-15. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. FOR THAT THE DETERMINATION OF LONG TERM CAPITA L GAINS AT RS.23,93,079/- MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) IS WRONG, UNCALLED FOR AND OTHERWISE EXCESSIVE. 2. FOR THAT THE AO OUGHT TO HAVE CONSIDERED THE FA CT THAT THE APPELLANT ALONG WITH HIS TWO BROTHERS HAVING RECEIVED THE GIFT OF THE PROPERTY E ARLIER IN THE YEAR 1965 FROM HIS FATHER AND AS PER FAMILY SETTLEMENT HAVING BECOME THE OWNER OF THE PROPERTY IN THE YEAR 1985 WAS ENTITLED TO THE BENEFIT OF COST INFLATION INDEX ON THE VALUE AS ON 01.04.1981 WHICH THE AO OUGHT TO HAVE TAKEN NOTE OF AND DETERMINED THE ASSESSABLE LONG TERM CAPITAL GAIN ACCORDINGLY. 3. FROM THE PERUSAL OF GROUND NO. 2 IT IS CLEAR TH AT THE MAIN GRIEVANCE OF ASSESSEE IS THAT WHILE COMPUTING THE LONG TERM CAPITAL GAINS (LTCG), THE COST OF ACQUISITION OF THE PROPERTY SHOULD BE TAKEN AS ON 05.03.1965, SINCE T HE ASSESSEE ALONG WITH HIS TWO BROTHERS HAVE RECEIVED THE GIFT OF THE PROPERTY EARLIER IN T HE YEAR OF 1965 FROM HIS FATHER AND AS PER FAMILY SETTLEMENT HAVING BECOME THE OWNER OF THE PR OPERTY IN THE YEAR 1985 WAS ENTITLED TO THE BENEFIT OF COST INFLATION INDEX ON THE VALUE AS ON 01.04.1981. ACCORDING TO ASSESSEE, THE AO HAS NOT GIVEN THIS BENEFIT OF COST INFLATION IND EX ON THE VALUE AS ON 01.04.1981. THEREFORE, THE ASSESSEE PLEADS THAT THE AO OUGHT TO HAVE CALLED FOR THE VALUATION OF THE PROPERTY FROM THE DVO AND THEREAFTER ONLY AFTER CON SIDERING HIS REPORT AS WELL AS THE OBJECTION OF THE ASSESSEE SHOULD HAVE DECIDED THE C ASE AS HELD BY THE HONBLE CALCUTTA HIGH 2 ITA NO. 1694/KOL/2019 AMARENDRA KR. PAL, AY- 2014-1 5 COURT IN THE CASE OF SUNIL KR. AGARWAL VS. CIT, SIL IGURI, GA NO. 3686 OF 2013 ITAT NO.221 OF 2013 DATED 13.03.2014. I NOTE THAT THE A SSESSEE HAS OBTAINED VALUATION REPORT OF THE LAND IN QUESTION FROM SHRI MANOJ KUMAR SEN A CO NSULTING ENGINEER AND APPROVED VALUER, [A COPY OF WHICH IS PLACED BEFORE ME] AND T HE PRAYER OF THE ASSESSEE IS THAT FOR THE PURPOSE OF CALCULATION OF LONG TERM CAPITAL GAINS I N RESPECT OF THE PROPERTIES SOLD BY HIM SINCE HAVE BEEN GIVEN AS GIFT TO HIM AS WELL AS HIS BROTHER FROM 05.03.1965 AND BECAME A FULL OWNER SINCE 04.02.1985, THE AO MAY BE DIRECTED TO CALL FOR THE DVOS REPORT AS HELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN SUNIL KUMA R AGARWAL (SUPRA) AND DETERMINE LTCG WHICH WE DIRECT THE AO TO DO SO. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND DIRECT THE AO TO CALL FOR THE DVOS REPORT AND, THE REAFTER COMPUTE THE LTCG IN ACCORDANCE TO LAW. 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 31ST DECE MBER, 2019. SD/- (ABY. T. VARKEY) JUDICIAL MEMBER JD.(SR.P.S.) DATED :31ST DECEMBER, 2019 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SHRI AMARENDRA KUMAR PAL, VILLAGE KO NNAGAR, GHATAL, DIST. PASCHIM MEDINIPORE, WEST BENGAL-721212 2 RESPONDENT INCOME-TAX OFFICER, WARD-38(3), KOLK ATA. 3. 4. 5. CIT(A)-11 , KOLKATA (SENT THROUGH E-MAIL) CIT- , KOLKATA. DR, ITAT, KOLKATA. (SENT THROUGH E-MAIL) / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR