Raj Kumar, Kanpur V. Income Tax Officer-3(3), Kanpur

ITA 193/LKW/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1102 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 22-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: PRADEEP MEHROTRA
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice
• Section: 50C; 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 193/LKW/2017 ASSESSMENT YEAR: 2013 - 14 SHRI RAJ KUMAR 79/21, LATOUCHE ROAD KANPUR V. INCOME TAX OFFICER 3(3) KANPUR T AN /PAN : AAXPK6860B (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI PRADEEP MEHROTRA, ADVOCATE RESPONDENT BY: SHRI RAJIV KUMAR, D.R. DATE OF HEARING: 08 02 201 8 DATE OF PRONOUNCEMENT: 20 0 2 201 8 O R D E R PER P ARTHA SARATHI CHAUDHURY, J.M : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(A) - I, KANPUR DATED 3/1/2017 ON THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE LD . C.I.T. APPEAL, KANPUR HAS ERRED ON FACTS AND I N LAW IN HOLDING THE GROUND NO.1 IS DISMISSED AS NOT PRESSED. 2 . THAT THE LD. C.I.T, APPEAL HAS ERRED ON FACTS AND IN LAW IN NOT GIVING ANY FINDING ON THE ISSUE OF REFERENCE TO D.V.O, BY THE ASSESSING OFFICER AND NOT PROVIDING A OF THE REPORT OF THE D.V.O. TO THE APPELLANT FOR FILIN G HIS OBJECTIONS TO THE REPORT OF THE D.V.O. IN DEFIANCE OF PRINCIPLES OF NATURAL JUSTICE . 3. THAT THE LD. C.I .T. APPEAL HAS ERRED ON FACTS AND IN LAW IN NOT ALLOWING PROPER RELIEF FOR ADOPTION OF STAMP DUTY FOR VALUE U/S 50C ITA NO.193/LKW/2017 PAGE 2 OF 4 FOR CALCULATING THE GAINS, INS PITE OF OBJECTIONS BY THE ASSESSEE APPELLANT. 4. THAT THE ORDER OF THE C.I.T. APPEAL REJECTING THE GROUND OF OBJECTION WITH REGARD TO ADOPTION OF CIRCLE RATE VALUE IS INCORRECT, AGAINST THE PROVISIONS OF LAW AND ALSO IN DEFIANCE OF THE PRINCIPLES OF NATURA L JUSTICE . 5. THAT THE LD . C.I.T. HAS ERRED ON FACTS AND IN LAW IN NOT GIVING ANY FINDING ON THE CLAIM OF DEDUCTION U/S 54 BY THE APPELLANT WHERE AS THE MATTER WAS RAISED BEFORE THE C.I.T. APPEAL. 6. THAT THE DATED 03/01/17 IS ARBITRARY, ILLEG AL, BAD IN LAW TO BE QUASHED SO FAR AS CONFIRMING THE ACTION OF THE A.O. ADOPTING SALE CONSIDERATION CALCULATED IN THE BASIS OF CIRCLE RATE. 2 . DURING THE COURSE OF HEARING BEFORE US, THE LD. A.R. OF THE ASSESSEE FILED AN AFFIDAVIT WHEREIN IT I S STATED THAT GROUNDS NO.1 AND 2 OF THE GROUNDS OF APPEAL RAISED BEFORE THE LD. CIT(A) WERE DISMISSED AS NOT PRESSED , WHICH IS NOT THE CORRECT SITUATION. THE LD. A.R. OF THE ASSESSEE PRAYED THAT IN THE INTEREST OF JUSTICE THE MATTER MAY BE SENT BACK TO TH E FILE OF THE LD. CIT(A) WITH A DIRECTION TO ADJUDICATE GROUNDS NO.1 & 2 OF THE APPEAL RAISED BEFORE THE LD. CIT(A) ON MERIT . 3 . THE LD. D.R. DID NOT HAVE ANY OBJECTION TO THE PRAYER MADE BY THE LD. A.R. OF THE ASSESSEE. 4 . WE HAVE PERUSED THE CASE RECORDS, ANAL YSED THE FACTS AND CIRCUMSTANCES, HEARD THE RIVAL CONTENTIONS AND IT IS EVIDENT FROM THE ORDER OF THE LD. CIT(A) THAT GROUNDS NO.1 & 2 RAISED BEFORE HIM WERE DISMISSED AS NOT PRESSED. FOR THE SAKE OF READY REFERENCE, GROUNDS NO.1 & 2 , AS RAISED BEFORE THE LD. CIT(A) , ARE REPRODUCED HEREUNDER: - 1 . ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE IT IS TO BE SAY THAT THE LD. A.O. ADDED THE CAPITAL GAIN WITHOUT REFERRING ITA NO.193/LKW/2017 PAGE 3 OF 4 THE MATTER TO THE DEPARTMENTAL VALUATION OFFICER. AND THEREFORE THE ADDITION MADE DESERVE T O BE DELETED. 2 . ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE IT IS TO BE SAY THAT THE LD. A.O, DENIED THE EXEMPTION U/S 54 AS THE ASSESSEE HAS NOT ABLE TO ACQUIRE THE SAME BUT LD. A.O. HAS ERRED THE CIRCULAR NO. 672 DATED 16.12.2106 OF CBDT AND IN SAME TIME HE HAS ALSO DECLINE THE BENEFIT OF INVESTMENT IN PLOTS IN JAIPUR WHICH ARE IN POSSESSION FROM 22/CT4/2014 THEREFORE THE EXEMPTION IS TO BE GIVEN TO APPELLANT. 5 . SINCE THE CONTENTION OF THE LD. A.R. OF THE ASSESSEE THROUGH AFFIDAVIT IS THAT NO SUBMISSION WAS MADE BEFORE THE LD. CIT(A) FOR NOT PRESSING GROUNDS NO.1 & 2, WE ARE OF THE CONSIDERED VIEW THAT IN THE INT E REST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATING GROUNDS NO.1 & 2 ON MERIT. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO ADJUDICATE GROUNDS NO.1 & 2 OF THE GROUNDS OF APPEAL RAISED BEFORE HIM ON MERIT AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 6 . IN THE RESULT, APPE AL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20 / 0 2 / 201 8 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20 TH FEBR UARY , 201 8 JJ: 0802 ITA NO.193/LKW/2017 PAGE 4 OF 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR