Reeta Gupta, New Delhi V. ITO, WARD- 45(2), New Delhi

ITA 2026/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3959 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 07-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAGDISH SINGH
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice; Valuation report
• Section: 50C

Judgement Text

1 ITA NO. 2026/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SM C NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEM BER, AND SHRI PRASHANT MAHARISHI, ACCOU NTANT MEMBER ITA NO. 2026/DEL/2019 ( A.Y 2014-15) REETA GUPTA F-27, RAJOURI GARDEN NEW DELHI AAHPG2719B (APPELLANT) VS ITO WARD-45(2) NEW DELHI (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. JAGDISH SINGH, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 27/12/2018 PASSED BY CIT(A)-15, NEW DELHI FOR ASSESSMENT YEAR 2014-15.. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT THE ORDER PASSED BY HONBLE CIT (A) IS ILLEGA L, AGAINST THE FACTS & CIRCUMSTANCES OF THE CASE, UP TO THE EXTENT OF GROU NDS OF APPEAL. 2. THAT IN THE FACTS & CIRCUMSTANCES OF THE CASE, VAL UE OF THE PROPERTY AT GREATER NOIDA (U.P) CANNOT BE ASSESSED AT RS. 83,20 ,000/- AS AGAINST RS. 65,00,000/- DECLARED BY THE ASSESSEE. 3. THAT LD. CIT (A) HAVE ERRED IN CONFIRMING THE VALU E UNDER CONSTRUCTION FLAT OF RS. 83,20,000/- IN SPITE OF THE FACT, VALUATION REFERRED U/S 50C OF INCOME TAX ACT, BY LD. A.O. TO DEPARTMENTAL VALUER, REPORT HAS NOT BEEN RECEIVED. 4. ALTERNATIVELY, SECTION 50C OF THE INCOME TAX ACT, CANNOT BE APPLIED, AS NO, LAND OR BUILDING WAS TRANSFERRED ONLY RIGHT OF A DEVELOPMENT PROPERTY WAS TRANSFERRED. HENCE, SALE VALUE OF RS. 65,00,000 /- TO BE ACCEPTED. DATE OF HEARING 25.02.2020 DATE OF PRONOUNCEMENT 02 .03.2020 2 ITA NO. 2026/DEL/2019 5. ANY OTHER GROUND BEFORE OR AT THE TIME OF HEARING. 3. RETURN FILED DECLARING INCOME OF RS. 5,67,680/ - & LONG TERM CAPITAL LOSS (LTCL) OF RS. 47,51,754/-. DURING THE YEAR, TH E ASSESSEE SOLD RIGHTS IN FLAT IN MULTI STOREY BUILDING UNDER DEVELOPMENT, B EARING NO. 1002 BLOCK-9, SECTOR-TAU, GREATER, VIDE AGREEMENT TO SALE DATED 14.02.2014 FOR CONSIDERATION OF RS. 65,00,000/- DRAWN BETWEEN ASSE SSEE & ONE MR. NARENDRA PRASAD SINGH. THE ASSESSING OFFICER OBSERVED THAT F LAT WAS BOOKED BY THE ASSESSEE VIDE, FLAT BUYER AGREEMENT DATED 25.10.2 005 DRAWN BETWEEN PARSVANTH DEVELOPERS LTD, AND THE ASSESSEE. NO DOCU MENT WAS DRAWN I.E. LEASE/SUB LEASE DEED OTHER THAN FLAT BUYER AGREEME NT BETWEEN ASSESSEE & M/S. PARSVNATH DEVELOPERS LTD. THE ASSES SING OFFICER ASSESSED INCOME AT RS. 5,67,680/- BY MAKING ADDITION OF RS. 20,14,800/- UNDER THE HEAD CAPITAL GAIN. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) PARTLY ALLOWED THE APPEAL O F THE ASSESSEE. 5. NONE APPEARED FOR THE ASSESSEE DESPITE GIVING NO TICE. THEREFORE, WE ARE PROCEEDING ON THE BASIS OF THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE ASSESSING OFFICER AND BEFORE THE CIT(A). 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE ASSESSEE HAS GIVEN A VALUATION REPORT DATED 31/12/2013 OF GOVERNMENT APPROVED VALUERS WHICH WAS NOT AT ALL CONSIDERED BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A). THE CIT(A) AS WELL AS THE ASSESSING OFFICER BOTH DID NOT GIVE ANY REASONS AS TO WHY THE COLLECTOR RATE FOR VALUE OF THE PROPERTY HAS BEEN ADOPTED. THEREFORE, WE ARE REMANDING BACK THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO VERIF Y THE ACTUAL RATE OF THE PROPERTY 3 ITA NO. 2026/DEL/2019 BY CALLING FOR DVOS REPORT AS PER THE PROVISIONS O F THE ACT AND DECIDE ACCORDINGLY. NEEDLESS TO SAY, THE ASSESSEE BE GIVE N OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. 8. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 ND MARCH, 2020. SD/- SD/- (PRASHANT MAHARISHI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 02/03/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 2026/DEL/2019 DATE OF DICTATION 26.0 2 .2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 26.02 .2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 0 2 . 0 3 .2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 0 2 . 0 3 .2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 0 2 . 0 3 .2020 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER