Shri Surendra Kaur Hora, Indore V. THE ITO Ward 5(3), Indore

ITA 171/IND/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8847 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-03-2019
• Assessment Year: 2006-2007
• Appeal Filed On: 06-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K G GOYAL
• Assessee Lawyers: PA NKAJ SHAH A RS
• Keywords: Sale consideration of property below Jantri Value
• Section: 143(3); 50C

Judgement Text

[ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.171/IND/2017 ASSESSMENT YEAR: 2006-07 S MT. SURENDRA KAUR HO RA 50, VIDHYA NAGAR INDORE / VS. ITO WARD - 5(3) INDORE ( APPELLANT ) ( REVENUE ) P.A. NO. ACAPH7535D APPELLANT BY SHRI SUBHASH JAIN & SHRI PANKAJ SHAH, A.RS RESPONDENT BY SHRI K.G. GOYAL, SR.D.R. DATE OF HEARING: 28.03.2019 DATE OF PRONOUNCEMENT: 08.04.2019 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE CIT(A)-II, INDORE DATED 3.10.2016 PERTAINING TO T HE [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 2 ASSESSMENT YEAR 2006-07. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE L EARNED CIT(A) ERRED IN HOLDING CORRECTLY VALUED TO THE PROPERTY B Y AVO EVEN WHO IGNORE THE OBJECTION RAISED BY THE ASSESSEE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE L EARNED CIT(A) ERRED IN NOT HOLDING THE S.50C OF THE I.T. ACT IS N OT APPLICABLE TO THE TRANSACTION DATED 15.1.2001. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE L EARNED CIT(A) ERRED IN HOLDING THE WRONG VALUE TAKEN OF AVO EVEN POINTED OUT TO THE AVO & ASSESSING OFFICER. 4. ALTERNATIVELY, ON THE FACTS AND IN THE CIRCUMSTANCE S OF THE CASE, THE CIT(A) ERRED IN NOT HOLDING THAT THE AVO HAS ADOPTE D THE VALUE OF THE PROPERTY ON THE BASIS OF SOME REGISTRY TAKEN BY HIM AFTER IGNORING TO THE ADJACENT SALE DEED OF THE PLOT SUBMITTED BY THE ASSESSEE. 5. THE APPELLANT CRAVES LEAVE TO ADD, TO AMEND TO ALTE R AND/OR TO DELETE ALL OR ANY OF THE ABOVE GROUNDS OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT CASE OF THE ASSESSEE WAS REOPENED AND THE ASSESSMENT U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT) WAS FRAMED VIDE ORDER DATED 23.1.2015. THE A.O. NOTICED THAT THE ASSESSEE HAD SOLD PLOT IN TWO PARTS. AS PER THE S TAMP VALUATION AUTHORITY, THE VALUATION WAS ADOPTED AT RS.9,98,000/- AND RS.7,17,500/- RESPECTIVELY. THE ASSESSEE RAISED AN OBJECTION ADOPTING THE VALUE OF LAND AS [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 3 PER THE STAMP VALUATION AUTHORITY DURING THE COURSE OF ASSESSMENT. THEREFORE, THE ASSESSEE REFERRED THE MAT TER OF VALUATION TO THE DEPARTMENTAL VALUATION OFFICER. THE DEPARTMENTAL VALUATION OFFICER VALUED THE PROPERTY AT RS.6,56,185/- AND RS.4,73,072/- RESPECTIVELY. THERE BY, THE A.O. ADOPTING THE VALUATION AS GIVEN BY THE DEPARTMENTAL VALUATION OFFICER MADE ADDITION OF RS.9,41,203/-. AGAINST THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING SUBMISSIONS, DISMISSED THE APPEAL. NOW THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 3. THE PRESENT APPEAL IS BARRED BY 67 DAYS. ASSESSEE HAS FILED AN APPLICATION SEEKING CONDONATION OF DELAY. AN AFFIDAVIT IN SUPPORT OF THE APPLICATION HAS BEEN FILED. IT IS STATED IN THE AFFIDAVIT THAT THE ASSESSEE IS SUFFERING FROM STAGE 3 CANCER AND HAS BEEN UNDERGOING TREATMENT, [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 4 THEREFORE, COULD NOT FILE APPEAL. IT IS CONTENDED TH AT THE DELAY IN FILING IS NOT INTENTIONAL BUT DUE TO SERIOU S ILLNESS. 4. LD. D.R. OPPOSED THE AVERMENT MADE IN THE APPLICATION. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ASSESSEE HAS FILED A MED ICAL REPORT STATING THAT THE ASSESSEE IS SUFFERING FROM CANC ER AND HAS BEEN UNDERGOING TREATMENT AT CHL HOSPITAL, INDORE. IN OUR VIEW, THE REASON STATED IS A SUFFICIEN T CAUSE, THEREFORE, WE CONDONE DELAY AND TAKE UP THE APPEAL FOR ADJUDICATION. 6. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST ADDITION MADE BY THE ASSESSING OFFICER, BY ACCEPTING T HE VALUE AS RECOMMENDED BY THE DVO. [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 5 7. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. TH E WRITTEN SUBMISSIONS OF THE ASSESSEE ARE AS UNDER: [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 6 [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 7 8. LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. THE CONTENTION OF THE ASSESSEE IS TOO FOLD. FIRSTLY THAT THE PROVISION OF SECTION 50C OF THE ACT ARE NOT APPLICABLE AS IN THE PRESENT CASE , AGREEMENT WAS EXECUTED ON 15.1.2001, WHILE SECTION 50 C OF THE ACT WAS INTRODUCED BY FINANCE ACT, 2002 APPLICAB LE FROM 1.4.2003. SECONDLY, THE VALUATION ADOPTED BY T HE DVO IS NOT CORRECT AS THE DVO HAS ADOPTED DIFFERENT V ALUE FOR THE SAME PIECE OF LAND. AS PER THE DVO, FOR ONE PIECE OF LAND, IT IS ADOPTED @ RS.591/- PER. SQ.FT. AND IN THE C ASE OF OTHER BUYER, IT IS RS.451/- PER SQ.FT. [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 8 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND MATERIAL PLACED ON RECORD. WE FIND SOME MERIT IN THE CONTENTION THAT TWO DIFFERENT VALUES HAVE BEEN TAKEN BY THE DVO CONSIDERING THE CONTEMPORARY CASES, THE VALUE SO ADOPTED IS EXCESSIVE. MOREOVER, THE DVO HAS NOT GIVE N REASON TO ADOPT VALUES OF THE ADJACENT PIECE OF LAND. W E THEREFORE, DIRECT THE A.O. TO ADOPT THE VALUE @ RS.45 1/- PER SQ.FT. AS ADOPTED BY THE DVO FOR ONE PART OF THE LAND AN D COMPUTE THE ADDITION ACCORDINGLY. THIS GROUND OF TH E ASSESSEES APPEAL IS PARTLY ALLOWED. 10. REGARDING ANOTHER OBJECTION OF THE ASSESSEE AGAINST APPLICABILITY OF PROVISION OF SECTION 50C OF THE ACT , SAME IS DEVOID OF ANY MERIT. ADMITTEDLY, SALE DEED WAS EXECUT ED WHEN THE PROVISION CAME INTO FORCE. WE THEREFORE RE JECT THIS CONTENTION. [ITA 171/IND/2017] [SMT. SURENDRA KAUR HORA, INDORE] 9 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 08. 04.2019. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIALMEMBER INDORE; DATED : 08/04/2019 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER ASSISTANT REGISTRAR, INDORE