Shri Manoj Kumar Kakra, Kolkata V. ITO, Ward - 35(2), Kolkata, Kolkata

ITA 2021/KOL/2010

• Counselvise Citation: 202123514 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2012
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 09-11-2010
• Court: TRIBUNAL
• Department Lawyers: P K CHAKRABORTY
• Assessee Lawyers: A RUSTOGI
• Keywords: Sale consideration of property below Jantri Value; Capital asset; Fair market value
• Section: 37; 50C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- C , KOLKATA [ . .. . , ,, , . .. . ! ! ! !. .. . , , , , '# ] [BEFORE SHRI N.VIJAYAKUMARAN , JUDICIAL MEMBER & SRI C.D.RAO , ACCOUNTANT MEMBER] $ $ $ $ / ITA NO. 2021/(KOL) OF 2010 %& '(/ ASSESSMENT YEAR : 2006-07 SHRI MANOJ KUMAR KAKRA, KOLKATA (PAN:AKDPK 7168 C) I.T.O., WARD-35(4), KOLKATA. (+, / APPELLANT ) - - VERSUS - (/0+,/ RESPONDENT ) +, 1 2 '/ FOR THE APPELLANTS: / SHRI A.RUSTOGI /0+, 1 2 '/ FOR THE RESPONDENT: / SHRI P.K.CHAKRABORTY 3 1 !# /DATE OF HEARING : 21.03.2012. 4' 1 !# /DATE OF PRONOUNCEMENT : 22.03.2012. '5 / ORDER ' ' ' ' . .. . ! ! ! !. .. . , , , , '# PER C.D.RAO, AM THE ABOVE APPEAL FILED BY THE ASSESSEE IS AGAINST O RDER OF THE LD. C.I.T.(A), XX, KOLKATA, DATED 30.08.2010 RELATING TO ASSESSMENT Y EAR 2006-07. 2. IN THIS APPEAL THE ASSESSEE HAS TAKEN THE FOLLOW ING GROUNDS OF APPEAL : 1.FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE ,THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-XX REJECTING T HE APPEAL IS BAD IN LAW AND THEREFORE LIABLE TO BE SET ASIDE. 2. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE ,THE COMMISSIONER OF INCOME TAX (A)-XX IS ERRED IN CONFIRMING THE ORDER OF THE INCOME TAX OFFICER FOR ADOPTING THE VALUE FOR THE PURPOSE OF CAPITAL GAIN 3. FOR THAT ON THE FACT AND IN THE CIRCUMSTANCES OF THE CASE THE COMMISSIONER OF INCOME TAX (A)-XX SHOULD HAVE DIRECTED THE ITO TO R EFER THE MATTER OF VALUATION TO VALUATION OFFICER U/S.51(2) OF THE INCOME TAX ACT,1 961 AS THE APPELLANT HAS CLAIMED BEFORE, THAT THE ASSESSING OFFICER THAT THE VALUE A SSESSED BY THE ASSESSING OFFICER EXCEEDS THE FAIR MARKET VALUE ON THE PROPERTY AS ON THE DATE OF TRANSFER. 4. FOR THAT ON THE FACT AND IN THE CIRCUMSTANCES OF THE CASE THE COMMISSIONER INCOME TAX(A)-XX SHOULD HAVE DIRECTED THE ASSESSING OFFICE R TO ACCEPT THE VALUE OF THE 2 PROPERTY FOR THE PURPOSE OF THE CAPITAL GAIN, AS RE CEIVED BY THE APPELLANT AS SALES CONSIDERATION FOR HIS SHARE IN THE PROPERLY. 3. AT THE TIME OF HEARING BEFORE US THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE HAS SUBMITTED THAT HE MADE A REQUEST TO THE ASSESSI NG OFFICER TO REFER THE MATTER TO DISTRICT VALUATION OFFICER AS HE IS NOT IN AGREEMEN T WITH THE VALUATION ADOPTED BY THE REGISTERED AUTHORITIES. THEREFORE HE REQUESTED TO S ET ASIDE THE MATTER TO THE FILE OF AO AND DIRECT THE AO TO REFER THE VALUATION TO THE DVO AS PRESCRIBED BY THE STATUTE AND THEN COMPUTE THE CAPITAL GAIN AS PER LAW. 4. ON THE OTHER HAND, THE LD. DR APPEARING ON BEHA LF OF THE REVENUE RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF MATERIALS AVAILABLE ON RECORD, IT IS OBSERVED THAT THE AO, WH ILE COMPUTING THE CAPITAL GAIN, HAS ADOPTED THE VALUATION ASCERTAINED BY THE STAMP VALU ATION AUTHORITIES. IT IS FURTHER OBSERVED THAT AS PER SECTION 50C OF THE IT ACT WHE N ONCE THE ASSESSEE HAS DISPUTED THE VALUATION ADOPTED BY THE VALUATION AUTHORITIES BEFORE ANY AUTHORITY THEN THE AO MAY REFER THE VALUATION OF THE CAPITAL ASSET TO A V ALUATION OFFICER WHERE ANY SUCH REFERENCE IS MADE, THE PROVISIONS OF SUB-SECTIONS ( 2), (3),(4),(5) AND (6) OF SECTION 16A, CLAUSE (I) OF SUB-SECTION (1) AND SUB-SECTIONS (6) AND (7) OF SECTION 23A, SUB- SECTION (5) OF SECTION 24, SECTION 34AA, SECTION 35 AND SECTION 37 OF THE WEALTH-TAX ACT, 1957 (27 OF 1957) SHALL, WITH NECESSARY MODIFI CATIONS, APPLY IN RELATION TO SUCH REFERENCE AS THEY APPLY IN RELATION TO A REFERENCE MADE BY THE ASSESSING OFFICER UNDER SUB-SECTION (1) OF SECTION 16A OF THAT ACT. IN THIS CASE APPARENTLY THE AO HAS FAILED TO REFER THE CASE AS REQUIRED U/S 50C OF THE IT ACT. T HEREFORE, WE SET ASIDE THE ORDERS OF THE REVENUE AUTHORITIES AND RESTORE THE MATTER TO T HE FILE OF AO WITH THE DIRECTION THAT HE SHOULD REFER THE MATTER TO THE DVO AND RECOMPUTE THE CAPITAL GAIN AS PRESCRIBED U/S 50C OF THE ACT AFTER GIVING A REASONABLE OPPORTUNIT Y OF BEING HEARD TO THE ASSESSEE. WE ORDER ACCORDINGLY. 3 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 22.03.2012. SD/- SD/- . .. . , , , , % % % % N.VIJAYAKUMARAN, JUDICIAL MEMBER . .. . ! ! ! !. .. . , , , , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 22.03.2012. '5 1 /%% 6''7- COPY OF THE ORDER FORWARDED TO: 1. SHRI MANOJ KUMAR KAKRA, 37, B.R.B.BASU ROAD, 2 ND FLOOR, KOLKATA-700001. 2. I.T.O.,WARD-35(4), KOLKATA 3. CIT. 4. CIT(A)-XX, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA 0 /%/ TRUE COPY, '5/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.)