ITO Non Corporate Ward 19(3), CHENNAI V. G.Sampath, CHENNAI

ITA 2072/CHNY/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5789 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Set aside
• Section: 50C; 64

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI , . , % BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.2072/CHNY/2018 ( / ASSESSMENT YEAR: 2012-13) THE INCOME TAX OFFICER, NON-CORPORATE WARD-19(3) CHENNAI. VS MR. G.SAMPATH, OLD NO.14 NEW NO.1, VELACHERY ROAD, ALANDUR, CHENNAI-600 016. PAN: DBGPS 0299F ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : MR. SURESH PERIASAMY, JCIT /RESPONDENT BY : NONE /DATE OF HEARING : 10.03.2021 /DATE OF PRONOUNCEMENT : 28.04.2021 / O R D E R PER G.MANJUNATHA, AM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST ORDER OF THE LEARNED CIT(A)-14, CHENNAI DATED 26.03.201 8 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE ORDER OF THE LEARNED CIT(A) IS CONTRARY TO LAW AND FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED CIT(A) HAS ERRED IN CONDONING THE DE LAY IN FILING APPEAL BY THE ASSESSEE OF 134 DAYS WITHOU T PASSING A SPEAKING ORDER. 2 ITA NO.2072CHNY/2018 3. THE LEARNED CIT(A) HAS ERRED TO CONSIDER THE FACT THAT ASSESSEE HIMSELF HAD PLEADED BEFORE THE CIT(A) THAT THE SALE CONSIDERATION OF THE IMPUGNED PROPERT Y AS ADOPTED BY THE DVO VIZ. ` 48.91 CRORES MAY BE CONSIDERED INSTEAD OF VALUE AS PER SEC. 50C OF THE ACT, AS ADOPTED BY THE ASSESSING OFFICER IN THE ASSESSME NT ORDER I.E. RS.100.04 CRORES. 4. THE LEARNED CIT(A) HAS ERRED IN ADOPTING THE SALE CONSIDERATION OF THE PROPERTY AS ` 52.66 CRORES INSTEAD OF ` 32 CRORES AS MENTIONED N THE SALE DEED DT. 7/10/2011 BECAUSE OF WHICH HE WRONGLY CONCLUDED THA T THE VALUATION ADOPTED BY THE DVO OF ` 48.91 CRORES IS LESS THAN THE SALE CONSIDERATION AND ACCORDINGLY, DIRECTED TO ACCEPT THE RETURNED INCOME, WHEREAS THE DVO VALUE OF ` 48.91 CRORES IS MORE THAN THE SALE CONSIDERATION OF ` 32 CRORES AND ACCORDINGLY SHOULD HAVE DIRECTED TO ADOPT THE DVO VALUE INSTEAD OF INC OME RETURNED BY ASSESSEE. 5. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDU CED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE LEARNED CIT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER RESTORED. 3. BRIEF FACTS OF THE CASE ARE THAT A SEARCH OPERAT ION U/S.132 OF THE ACT WAS CONDUCTED IN THE CASE OF MR. N.PALA NISAMY AND HIS GROUP OF COMPANIES . DURING THE SEARCH PROCEED INGS, IT WAS FOUND THAT M/S. PEE DEE LANDS HOLDINGS PVT.LTD. HAS PURCHASED A PROPERTY AT DOOR NO.71, L.B. ROAD, TIRU VANMIYUR, CHENNAI ON 07.10.2011 MEASURING 4 ACRES AND 11 CEN TS FROM 64 SELLERS FOR A SALE CONSIDERATION OF ` 32 CORES. HOWEVER, IT 3 ITA NO.2072CHNY/2018 WAS NOTICED THAT GUIDELINE VALUE AS MENTIONED IN TH E REGISTERED SALE DEED WAS AT ` 100.04 CRORES. THE ASSESSEE SHRI G.SAMPATH WAS ONE OF THE SELLERS OF THE PROPERTY AN D ACCORDINGLY, ASSESSMENT HAS BEEN REOPENED U/S.147 O F THE ACT. THE CASE WAS TAKEN UP FOR SCRUTINY AND DURING THE C OURSE OF ASSESSMENT PROCEEDINGS, IT WAS NOTICED THAT SALE CO NSIDERATION RECEIVED FOR TRANSFER OF PROPERTY IS LESS THAN TH E VALUE DETERMINED FOR PAYMENT OF STAMP DUTY AND ACCORDINGL Y, THE ASSESSING OFFICER HAS ADOPTED 50C VALUE AND RECOMP UTED LONG TERM CAPITAL GAIN FROM SALE OF PROPERTY AT ` 2,62,02,032/- 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE PREFERRED AN APPEAL BEFORE THE LEARNED CIT(A). BEFO RE THE LEARNED CIT(A), THE ASSESSEE HAS FILED CERTAIN ADDI TIONAL EVIDENCES AND SAME HAS BEEN FORWARDED TO THE ASS ESSING OFFICER FOR HIS COMMENTS. THE ASSESSING OFFICER VI DE HIS REMAND REPORT DATED 14.03.2018 SUBMITTED THAT ALTH OUGH GUIDELINE VALUE OF PROPERTY WAS FIXED AT ` 100.04 CRORES, BUT DVO VIDE HIS REPORT DATED 02.11.2017 HAS ESTIMATE D THE MARKET VALUE OF THE PROPERTY AS ON THE DATE OF SALE AT ` 48.99CRORES, WHICH IS MORE THAN SALE CONSIDERATION MENTIONED 4 ITA NO.2072CHNY/2018 IN REGISTERED SALE DEED. THE LEARNED CIT(A), AFTER CONSIDERING RELEVANT SUBMISSIONS OF THE ASSESSEE AND ALSO TAKEN NOTE OF REPORT OF DVO DELETED THE ADDITIONS MADE BY THE ASS ESSING OFFICER TOWARDS RECOMPUTATION OF LONG TERM CAPITAL GAIN BY ADOPTING 50C VALUE ON THE GROUND THAT VALUE DETERMI NED BY DVO IS LESS THAN THE SALE CONSIDERATION AS PER REGI STERED SALE DEED. BEING AGGRIEVED BY THE LEARNED CIT(A) ORDER, THE REVENUE IS IN APPEAL BEFORE US. 5. NONE APPEARED FOR THE ASSESSEE. WE HAVE HEARD TH E LEARNED DR AND PERUSED MATERIALS AVAILABLE ON RECOR D . AT THE TIME OF HEARING, THE LEARNED DR SUBMITTED THAT THE ISSUE INVOLVED IN THE PRESENT APPEAL IS COVERED BY THE DE CISION OF ITAT, CHENNAI BENCH IN THE CASE OF ITO VS. SHRI NEELAMANIKANDAN IN ITA NO .1988 /CHNY/2018 VIDE OR DER DATED 31.10.2018, WHERE UNDER IDENTICAL SET OF FACT S AND IN ONE OF THE CASE OF SELLERS OF THE PROPERTY, THE ISSUE H AS BEEN SET ASIDE TO THE FILE OF ASSESSING OFFICER WITH A DIREC TION TO ADOPT VALUE DETERMINED BY DVO INSTEAD OF VALUE FIXED FOR PAYMENT OF STAMP DUTY, AS PER PROVISIONS OF SECTION 50C OF TH E ACT. WE FIND THAT THE TRIBUNAL IN ITA NO.1988/CHNY/2018 IN THE CASE OF ITO VS. SHRI NEELAMANIKANDAN(SUPRA) HAS CONSIDERED THE 5 ITA NO.2072CHNY/2018 ISSUE AND OBSERVED THAT DVO HAS DETERMINED THE MAR KET VALUE OF THE PROPERTY AS ON THE DATE OF SALE AT ` 48.99 CRORES, WHICH IS MORE THAN THE SALE CONSIDERATION OF ` 32 CRORES SHOWN IN THE REGISTERED SALE DEED, BUT LESS THAN GUIDELINE V ALUE OF PROPERTY AT ` 100.04 CRORES AS CONSIDERED BY THE ASSESSING OFFICER UNDER THE PROVISIONS OF SECTION 50C OF THE ACT. FURTHER, UNDER THOSE FACTS, THE TRIBUNAL HAS SET ASIDE THE O RDER PASSED BY THE LEARNED CIT(A) AND RESTORED THE ISSUE BACK T O THE FILE OF THE ASSESSING OFFICER, WITH A DIRECTION TO ADOPT DV O VALUE OF RS.48.99 CRORES AND TO RECOMPUTE CAPITAL GAIN IN AC CORDANCE WITH LAW. IN THIS CASE, THE FACTS ARE PARI MATERIA WITH THE FACTS ALREADY CONSIDERED BY THE TRIBUNAL IN ITA NO.1988/C HNY/2018. THEREFORE, BY FOLLOWING THE DECISION OF THE CO-ORDI NATE BENCH OF ITAT.,CHENNAI IN THE CASE OF ITO VS. SHRI NEELAMAN IKANDAN (SUPRA), WE SET ASIDE THE ORDER PASSED BY THE LEARN ED CIT(A) AND RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER AND DIRECT HIM TO RECOMPUTE THE LONG TERM CAPITAL GAIN BY ADOPTING THE VALUE DETERMINED BY THE DVO IN TERMS OF SECTION 50C OF THE ACT. 6 ITA NO.2072CHNY/2018 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL, 2021 SD/- SD/- ( ) ( . ) (MAHAVIR SINGH) (G. MANJUNATHA ) / VICE-PRESIDENT ! / ACCOUNTANT MEMBER # /CHENNAI, $ /DATED 28 TH APRIL, 2021 DS ()*) /COPY TO: APPELLANT 2. RESPONDENT 3. + ( ) /CIT(A) 4. + /CIT 5. ) 0 /DR 6. /GF .