ITO, New Delhi V. Sh. Rajeev Bhasin, Delhi

ITA 199/DEL/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8899 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 09-02-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 11-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Keywords: Sale consideration of property below Jantri Value; Cost of acquisition
• Section: 50C; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI C.M. GARG, JM ITA NO.199/DEL/2013 ASSESSMENT YEAR : 2009-10 ITO, WARD 34(2), NEW DELHI. VS. RAJEEV BHASIN, 719, KABOOL NAGAR, SHAHDARA, DELHI. PAN: ACSPB2291C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ANUJ JAIN, CA DEPARTMENT BY : SHRI VIKRAM SAHAY, SR. DR ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 5.10.2012 IN RELATION TO THE ASSESSME NT YEAR 2009-10. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER (AO) RECEIVED AIR INFORMATION REGARDING SALE OF SOM E PROPERTY BY THE ITA NO.199/DEL/2013 2 ASSESSEE ON 21.11.2008 FOR A CONSIDERATION OF RS.32 .30 LAC. THE AO CALLED UPON THE ASSESSEE TO EXPLAIN AS TO HOW THE S ALE CONSIDERATION WAS TAKEN AT RS.10 LAC, WHEREAS THE CIRCLE RATE ADOPTED BY THE STAMP VALUE AUTHORITY STOOD AT RS.32.30 LAC. INVOKING THE PROV ISIONS OF SECTION 50C OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED TH E ACT), THE AO ADOPTED CIRCLE RATE OF LAND AT RS.32.30 LAC AND MAD E THE ADDITION FOR THIS SUM BY HOLDING THAT THE CONTENTIONS PUT FORTH BY TH E ASSESSEE WERE OF NO RELEVANCE. THE ASSESSEE MADE SUBMISSIONS BEFORE TH E LD. CIT(A) ON SEVERAL ISSUES BY FILING CERTAIN DETAILS RELEVANT F OR THE PURPOSE. THE LD. CIT(A) SENT SUCH DETAILS TO THE AO FOR REMAND REPOR T. ON PERUSAL OF THE MATERIAL ON RECORD AND ALSO THE REMAND REPORT, THE LD. CIT(A) HELD THAT THE ASSESSEE HAD ONE HALF SHARE IN THE PROPERTY; ST AMP VALUE OF THE PROPERTY WAS RS.30.66 LAC; AND THE COST OF THE PROP ERTY WAS REQUIRED TO BE CONSIDERED IN THE CALCULATION OF CAPITAL GAINS, WHICH STOOD AT RS.8,20,000/- PLUS RS.82,000/- TOWARDS STAMP DUTY. THE REVENUE IS AGGRIEVED AGAINST THE ABOVE CONCLUSIONS DRAWN BY TH E LD. CIT(A). ITA NO.199/DEL/2013 3 3.1. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PER USED THE RELEVANT MATERIAL ON RECORD. IT CAN BE SEEN FROM THE ASSESSE ES LETTER DATED 28.11.2011 FILED BEFORE THE AO DURING THE COURSE OF REMAND PROCEEDINGS, CATEGORICALLY MENTIONING THAT THE ASSE SSEES SHARE IN THE PROPERTY WAS ONLY TO THE EXTENT OF 50% AND THE REMA INING 50% BELONGED TO SHRI SHANTI LAL KAPUR. THE LD. CIT(A) PERUSED A COPY OF THE PURCHASE DEED AS WELL AS SALE DEED GIVING NAMES OF THE ASSESSEE ALONG WITH SHRI SHANTI LAL KAPUR IN SUCH DOCUMENTS AS JOI NT OWNERS. THE REASON FOR THE DEPOSIT OF THE AMOUNT IN THE BANK AC COUNT WAS THAT SUCH BANK ACCOUNT WAS IN THE JOINT NAMES OF THE ASSESSE E AND SHRI SHANTI LAL KAPUR. A COPY OF THE PURCHASE DEED INDICATING THE A SSESSEES NAME ALONG WITH SHRI S.L. KAPUR, AS BUYERS, WAS PRODUC ED BEFORE US DURING THE COURSE OF ARGUMENTS. IN VIEW OF THIS EVIDENCE, WHICH HAS NOT BEEN CONTROVERTED BY THE LD. DR, IT IS CLEAR THAT THE AS SESSEE ONLY HAD SHARE IN THE PROPERTY AND THE REMAINING BELONGED TO SHR I SHANTI LAL KAPUR. ITA NO.199/DEL/2013 4 3.2. THE LD. AR HAS BROUGHT TO OUR NOTICE THAT T HE REVENUE HAS ISSUED NOTICE U/S 148 TO SHRI S.L. KAPUR AS WELL IN RESPEC T OF INCOME FROM THE TRANSFER OF THE REMAINING SHARE IN THE PROPERTY. 3.3. IN VIEW OF THE FOREGOING DISCUSSION, WE APPR OVE THE VIEW POINT TAKEN BY THE LD. CIT(A) IN CONSIDERING THE ASSESSEE S SHARE IN THE PROPERTY AT ONE HALF. 4. THE SECOND FINDING OF THE LD. CIT(A) WHICH HAS B EEN CHALLENGED IS AGAINST THE ADOPTION OF STAMP VALUE AT RS.30.66 LAC . AS AGAINST THE AO TAKING RS.32.36 LAC AS THE STAMP VALUE OF THE PROPE RTY, THE LD. CIT(A) RESTRICTED THIS VALUE TO RS.30.66 LAC ON THE BASIS OF THE SALE DEED INDICATING THE STAMP VALUE AT THIS FIGURE. WE HAVE ALSO PERUSED A COPY OF THE SALE DEED WHICH INDICATES STAMP VALUE AT THE FIGURE TAKEN BY THE LD. CIT(A). THUS, THERE REMAINS NO DISPUTE THAT TH E CORRECT STAMP VALUE OF THE PROPERTY IS RS.30.66 LAC, AS AGAINST RS.32.3 0 LAC, WHICH WAS INADVERTENTLY TAKEN BY THE AO. THE VIEW TAKEN BY TH E LD. CIT(A) ON THIS SCORE IS UPHELD. ITA NO.199/DEL/2013 5 5. THE LAST ISSUE IS AGAINST THE ADOPTION OF COST O F PROPERTY AT RS.8.20 LAC PLUS STAMP DUTY OF RS.82,000/-. FROM THE AOS COMPUTATION OF TOTAL INCOME, IT CAN BE SEEN THAT HE TOOK STAMP VALUE AT RS.32.30 LAC AND CONSIDERED THE SAME AMOUNT AS LONG-TERM CAPITAL GA IN WITHOUT ALLOWING ANY DEDUCTION TOWARDS THE COST OF ACQUISIT ION OF THE PROPERTY. THE LD. CIT(A), ON PERUSAL OF THE PURCHASE DEED, CO NSIDERED THE PURCHASE PRICE OF THE PROPERTY AT RS.8.20 LAC PLUS STAMP DUTY OF RS.82,000/-. THERE IS HARDLY ANY NEED TO EMPHASIZE THAT IN THE COMPUTATION OF CAPITAL GAINS, SECTION 48 REQUIRES A DEDUCTION, INTER ALIA , FOR COST OF ACQUISITION OF THE PROPERTY. NO MATERI AL HAS BEEN PLACED ON RECORD BY THE LD. DR TO SHOW THAT THE VALUE AS TAKE N BY THE LD. CIT(A) IS INCORRECT. WE, THEREFORE, UPHOLD THE IMPUGNED ORDE R ON THIS SCORE. 6. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 10.02.201 5. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 10 TH FEBRUARY, 2015. ITA NO.199/DEL/2013 6 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.