D.C.I.T Cir - 11,kolkata, Kolkata V. M/s Life Pharmaceuticals Pvt Ltd, Kolkata

ITA 2108/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4762 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 25-05-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 12-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KALYAN NATH J
• Assessee Lawyers: ABHIJIT BISWAS
• Keywords: Sale consideration of property below Jantri Value
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO. 2108 / KOL / 2013 ASSESSMENT YEAR :2005-06 DCIT, CIRCLE-11, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 V/S . M/S LIFE PHARMACEUTICALS PVT. LTD. 3/2B, ORIENT ROW, KOLKATA-700 017 [ PAN NO.AAACL 5084 E ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI KALYAN NATH, JCIT-DR /BY RESPONDENT SHRI ABHIJIT BISWAS, FCA /DATE OF HEARING 25-05-2016 /DATE OF PRONOUNCEMENT 03-06-2016 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-XII, KOLKATA DATED 12.03.2013. ASSESSMENT WAS FRAMED BY DCIT, CIRCLE-11, KOLKATA U/S 143(3) OF TH E INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE HIS ORD ER DATED 27.12.2007 FOR ASSESSMENT YEAR 2005-06. ASSESSEE HAS TAKEN THE FOL LOWING GROUNDS OF APPEAL:- 1. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE , LD. CIT(A) HAS ERRED IN ADOPTING THE VALUE OF THE PROPERTY AT RS.8 5,00,000/- KEEPING IN VIEW THE VALUE DETERMINED BY DVO INSTEAD OF VALUE D ETERMINED AT RS.1,47,00,000/- BY THE STAMP VALUATION AUTHORITY U /S. 50C(1) OF THE INCOME TAX ACT, 1961. ITA NO.2108/KOL/2013 A.Y.2005-06 DCIT CIR.11 KOL. V. M/S LIFE PHARMACEUTICALS PV T. LTD. PAGE 2 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) HAS ERRED IN CONSIDERING THE VALUATION DETERMINED BY DV O U/S. 50C(2) OF THE IT ACT, 1961 DUE TO THE FACT THAT THE PROVISION OF SECTION 50C(2) IS APPLICABLE FOR WEALTH TAX PURPOSE. SHRI ABHIJIT BISWAS LD. AUTHORIZED REPRESENTATIVE A PPEARED ON BEHALF OF ASSESSEE AND SHRI KALYAN NATH, LD. DEPARTMENTAL REP RESENTATIVE APPEARED ON BEHALF OF REVENUE. 2. FIRST GROUND RAISED BY REVENUE IS AS REGARDS TO LD. CIT(A) ERRED IN ADOPTING THE VALUE OF PROPERTY AND DETERMINED BY DI STRICT VALUATION OFFICER (DVO FOR SHORT) INSTEAD OF VALUE AS DETERMINED BY T HE STAMP VALUATION AUTHORITY. 3. AT THE OUTSET, IT WAS OBSERVED THAT THE ISSUE IS ARISING OUT OF THE APPEAL WHICH WAS DISPOSED OF BY REMITTING BACK BY THIS CO- ORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 761/KOL/2012 DATED 19.10.2012 FOR AY 2005-06 TO THE LD. CIT(A) BY OBSERVING AS FOLLOWS :- AT THIS POINT, WE ARE OF THE VIEW THAT THERE IS NO DOUBT ABOUT APPLICABILITY OF PROVISIONS OF SECTION 50C OF THE A CT ON THE ABOVE TRANSACTIONS BUT ONLY QUESTION IS WHETHER THE VALUE AS ADOPTED BY STAMP VALUATION AUTHORITY FOR REGISTRATION OF SALE DEED IS TO BE ADOPTED OR THERE IS ANY DVOS REPORT ON A REFERENCE BY AO O R CIT(A), THIS IS TO BE EXAMINED. IN SUCH CIRCUMSTANCES, EWE HAVE NO OPT ION EXCEPT TO SET ASIDE THIS MATTER BACK TO THE FILE OF CIT(A), WHO W ILL CONSIDER THE DVOS REPORT AND STAMP VALUATION DONE BASED ON CIRCLE RAT ES. THE CIT AFTER ALLOWING OPPORTUNITY TO AO AS WELL AS THE ASSESSEE WILL DECIDE THE ISSUE IN TERMS OF THE PROVISIONS OF SECTION 50C OF THE AC T. THE LD. CIT(A) HAS ACCORDINGLY PASSED ORDER IN TERM S OF DIRECTION CONTEMPLATED BY THIS CO-ORDINATE BENCH AS AFORESAID . SO THE ORDER PASSED BY LD. CIT(A) WAS NOTHING BUT TO GIVE EFFECT TO THE DI RECTION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL. AS SUCH, IN OUR CONSIDERED VIEW, THE ISSUE HAS ALREADY BEEN SETTLED BY THIS HONBLE TRIBUNAL TO ADOPT THE VALUATION OF THE DVO FOR WORKING OUT THE CAPITAL GAIN UNDER SECTION 50C OF T HE ACT. ACCORDINGLY WE DO ITA NO.2108/KOL/2013 A.Y.2005-06 DCIT CIR.11 KOL. V. M/S LIFE PHARMACEUTICALS PV T. LTD. PAGE 3 NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF LD . CIT(A) HENCE, THIS GROUND OF REVENUES APPEAL IS DISMISSED. 4. COMING TO NEXT ISSUE RAISED BY REVENUE IS THAT L D. CIT(A) ERRED IN APPLYING THE PROVISION OF SEC. 50C(2) OF THE ACT WH ICH, IN FACT, IS THE PROVISION FOR THE PURPOSE OF WEALTH TAX ACT, 1957. AT THE OUT SET, WE FIND THAT THE PROVISION OF SEC.50C OF THE ACT IS VERY MUCH APPLIC ABLE TO THE INCOME OF THE ASSESSEE UNDER THE INCOME TAX ACT. THEREFORE, WE HA VE NO ALTERNATIVE EXCEPT DISMISS THIS GROUND AS DEFECTIVE AND IN FRUCTUOUS. WE HOLD ACCORDINGLY. 5. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 03/ 06/2016 SD/- SD/- (S.S.VISWANETHRA RAVI) (WASEEM AHMED) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP !- 03 / 06 /201 6 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CIRCLE-11, P-7, CHOWRINGHEE SQUARE , KOLKATA-69 2. /RESPONDENT-M/ LIFE PHARMACEUTICALS PVT. LTD., 3/2B , ORIENT ROW, KOLKATA-17 3. ) *+ , , - / CONCERNED CIT KOLKATA 4. , , -- / CIT (A) KOLKATA 5. 012 33*+, , *+ , / DR, ITAT, KOLKATA 6. 267 89 / GUARD FILE. BY ORDER/ , , /TRUE COPY/ / , *+ ,