Harish Kumar Panjwani, V. Income Tax Officer,

ITA 204/JAB/2013

• Counselvise Citation: 20422914 RSA 2013
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-09-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 28-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHIR KUMAR
• Keywords: Sale consideration of property below Jantri Value
• Section: 54; 143(3); 50C; 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR S.M.C. BENCH, JABALPUR BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA NO.204/JAB/2013 ASSESSMENT YEAR: 2005-06 HARISH KUMAR PANJWANI, VS. INCOME TAX OFFICER, S/O. LATE SHRI LAXMAN DAS PANJWANI, WARD KATNI. JHANDA BAZAR, KATNI (M.P.) (PAN: AEPPP 1273 D). (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI SUDHIR KUMAR DATE OF HEARING : 26.09.2014 DATE OF PRONOUNCEMENT : 30.09.2014 ORDER BY WAY OF THIS APPEAL, THE ASSESSEE HAS CHALLENGED CORRECTNESS OF LD. COMMISSIONER OF INCOME TAX (APPEALS)S ORDER DATED 22 ND MARCH, 2013, FOR ASSESSMENT YEAR 2005-06, ON THE FOLLOWING GROUND:- 1. THAT UNDER THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE THE SECTION U/S 50C OF THE I.T. ACT 1961 APPLIED ON DED UCTION U/S 54F IS UNJUSTIFIED AND UNWARRANTED. 2. THAT THE APPLICANT RESERVES THE RIGHT TO AMEND/A LTER ANY OF THE GROUND OF APPEAL/ADD OTHER GROUND OF APPEAL AT THE TIME OF HEARING. 2. TO ADJUDICATE ON THIS GRIEVANCE, ONLY A FEW MATE RIAL FACTS NEED TO BE TAKEN NOTE OF. DURING THE RELEVANT PREVIOUS YEAR, THE AS SESSEE SOLD CERTAIN AGRICULTURAL 2 ITA NO.204/JAB/2013 A.Y. 2005-06 LAND FOR RS.2,00,000/- EVEN THOUGH STAMP DUTY VALUE OF THIS LAND, WHICH WAS ADOPTED FOR THE PURPOSE OF COMPUTING CAPITAL GAINS UNDER SECTION 50C WAS RS.7,29,000/-. THE ASSESSEE INVESTED THE ENTIRE SA LE PROCEEDS OF THIS LINE I.E. RS.2,00,000/- IN RESIDENTIAL HOUSE AND ACCORDINGLY CLAIMED EXEMPTION OF CAPITAL GAIN UNDER SECTION 54 OF THE ACT. HOWEVER, WHEN TH E ASSESSEES CASE WAS PUT TO SCRUTINY UNDER SECTION 143(3) OF THE ACT, THE ASSES SING OFFICER WAS OF THE OPINION THAT AS THE SALE VALUE ADOPTED FOR STAMP DUTY PURPO SE IS RS.7,29,000/-, WHEREAS ASSESSEES INVESTMENT IN PURCHASE OF HOUSE IS ONLY RS.2,25,000/-, THE ASSESSEE IS ENTITLED ONLY FOR THE PROPORTIONATE DEDUCTION UNDER SECTION 54F AND NOT OF THE ENTIRE AMOUNT. THE ASSESSEES CLAIM FOR EXEMPTION OF THE CAPITAL GAIN WAS THUS DECLINED. AGGRIEVED, THE ASSESSEE CARRIED THE MATT ER IN APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) BUT WITHOUT AN Y SUCCESS. LD. COMMISSIONER OF INCOME TAX (APPEALS) WAS OF THE VIE W THAT SINCE THE ASSESSEE HAS NOT CHALLENGED APPLICATION OF SECTION 50C, IN THE F ACTS OF THE CASE, THE GRIEVANCE RAISED BY THE ASSESSEE WITH REGARD TO APPLICATION O F SECTION 54F FOR EXEMPTION IS UNSUSTAINABLE IN LAW. THE ASSESSEE IS AGGRIEVED AN D IS IN APPEAL BEFORE THIS TRIBUNAL. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. 3 ITA NO.204/JAB/2013 A.Y. 2005-06 4. I HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE , PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. IN MY CONSIDERED VIEW, THIS ISSUE IS SQU ARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DIVISION BENCH DECISION OF THIS TRI BUNAL IN THE CASE OF GYAN CHAND BATRA VS. ITO, 133 TTJ 482 WHEREIN IT HAS BEEN HELD THAT THE STAMP DUTY VALUATION ADOPTED UNDER SECTION 50C IS ONLY FOR THE PURPOSE O F COMPUTING THE CAPITAL GAIN UNDER SECTION 48 AND, THEREFORE, IT HAS NO RELEVANC E IN COMPUTATION OF EXEMPTION UNDER SECTION 54F. AS LONG AS ENTIRE SALE PROCEEDS CONCERNED ARE INVESTED IN THE ELIGIBLE INVESTMENT, I.E RESIDENTIAL UNIT, IS AN AD MITTED POSITION ON THE FACTS OF THE CASE, THE CAPITAL GAIN ACCRUING IN THE HANDS OF THE ASSESSEE IS TO BE GRANTED EXEMPTION UNDER SECTION 54F OF THE ACT. IN VIEW OF THE STAND SO TAKEN BY THE TRIBUNAL, WITH WHICH I AM IN CONSIDERED AGREEMENT, I AM OF THE CONSIDERED OPINION THAT THE PLEA TAKEN BY THE ASSESSEE DESERVES TO BE ACCEPTED AND ENTIRE CAPITAL GAIN ON SALE OF LAND IS TO BE EXEMPTED UNDER SECTION 54F OF THE ACT. I DIRECT ACCORDINGLY. 5. IN THE RESULT, APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON 30 TH DAY OF SEPTEMBER, 2014. SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER DATE: 30 TH SEPTEMBER, 2014 4 ITA NO.204/JAB/2013 A.Y. 2005-06 PBN/* COPY OF THE ORDER FORWARDED TO :- 1) APPELLANT 2) RESPONDENT 3) CIT (APPEALS) CONCERNED 4) CIT CONCERNED 5) D.R., ITAT, JABALPUR BENCH, JABALPUR 6) GUARD FILE. BY ORDER, ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, JABALPUR