Sri Pradip Kumar Das, Howrah V. ITO, Ward-1(3), Durgapur, Durgapur

ITA 2150/KOL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9454 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 07-11-2016
• Court: TRIBUNAL
• Department Lawyers: N O N E
• Assessee Lawyers: V N PUROHIT
• Keywords: Fair market value; Valuation report
• Section: 147

Judgement Text

I.T.A. NO. 2150/KOL./2016 ASSESSMENT YEAR: 2012-2013 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER I.T.A. NO. 2150/KOL/ 2016 ASSESSMENT YEAR : 2012-2013 SRI PRADIP KUMAR DAS,.............................. ...............APPELLANT 13, HEMPAL LANE, FLAT NO. 204, P.O. BELURMATH (HOWRAH)-711 202 [PAN : ACPPD 6969 C] -VS.- INCOME TAX OFFICER,................................ ........................RESPONDENT WARD-1(3), DURGAPUR, AAYAKAR BHAWAN, AYAKAR BITJHI, DURGAPUR-713 216, WEST BENGAL APPEARANCES BY: SHRI V.N. PUROHIT, A.R., FOR THE ASSESSEE N O N E, FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JANUARY 31, 2017 DATE OF PRONOUNCING THE ORDER : FEBRUARY 08, 2017 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), DURGAPUR DATE D 31.08.2016 FOR THE ASSESSMENT YEAR 2012-13 ON THE FOLLOWING GROUND S:- (1) THAT THE REOPENING OF PROCEEDINGS BY ITO U/S 147 OF THE I.T. ACT, 1961 IS BAD IN LAW AND ALSO ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND CIT(A) HAS ERRED IN CONFIRMING ITOS ACTION. (2) THAT WITHOUT PREJUDICE TO ABOVE GROUND, THE CIT(A) HAS ERRED, BOTH IN LAW AND ON THE FACTS OF THE CASE IN HOLDING THAT L.T. CAPITAL GAIN ARRIVED BY ITO ON BASIS OF F AIR MARKET VALUE ESTIMATED BY 1 ST LAND REVENUE OFFICER IS CORRECT AND THEREBY DISMISSING THE APPEAL. I.T.A. NO. 2150/KOL./2016 ASSESSMENT YEAR: 2012-2013 PAGE 2 OF 4 2. THE SOLE ISSUE THAT ARISES IN THIS APPEAL FOR MY CONSIDERATION IS WHETHER THE ASSESSING OFFICER WAS RIGHT IN DETERMIN ING THE FAIR MARKET VALUE OF THE ASSET AS ON 01.04.1981 BY RELYING ON V ALUATION FURNISHED BY THE FIRST LAND ACQUISITION COLLECTOR, GOVERNMENT OF WEST BENGAL, AFTER REJECTING THE VALUATION REPORT OF THE GOVERNMENT RE GISTERED VALUER, WHICH WAS RELIED UPON BY THE ASESSEE. THE ASSESSEE DOES NOT PRESS GROUND NO. 1 ON THE ISSUE OF REOPENING OF ASSESSMEN T PROCEEDINGS UNDER SECTION 147. HENCE, THE SAME IS DISMISSED. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CO-OWNER OF A PROPERTY SITUATED AT 7A, ALLENBY ROAD, KOLKATA, P.S . BHOWANIPUR, KOLKATA- 20. THERE WERE FIVE CO-OWNERS AND THE ASSESSEE RECE IVED ONE-FIFTH SHARE OF THE PROPERTY. THIS PROPERTY WAS SOLD TO M/S. JCS IMPEX PVT. LIMITED FOR THE TOTAL SALE CONSIDERATION OF RS. TWO CRORES. THE ASSESSEE GOT THE FAIR MARKET VALUE OF THE PROPERTY VALUED BY GOVERNMENT R EGISTERED VALUER VIDE REGISTRATION NO. WB/CCIT/KOL-VII/40/REGISTRATI ON OF VALUER/IMMOVABLE PROPERTY/2006-07, WHO HAS DETERMIN ED THE VALUE OF PROPERTY AT RS.32,60,000/- AS ON 01.04.1981. ON THE BASIS OF THIS, 1/5 TH SHARE, I.E. RS.6,52,000/- WAS ADOPTED BY THE ASSESS EE AS FAIR MARKET VALUE AS ON 01.04.1981. THE ASSESSING OFFICER MADE AN ENQ UIRY FROM THE FIRST LAND ACQUISITION COLLECTOR, GOVERNMENT OF WEST BENG AL, WHO HAD VALUED THE PROPERTY AS ON 01.04.1981 AT RS.4,13,818/-. THE ASSESSEE OBJECTED TO THE ADOPTION OF SUCH VALUATION. THE ASSESSING OFFIC ER INSTEAD OF REFERRING THE VALUATION OF THE PROPERTY TO THE DEPARTMENTAL V ALUATION OFFICER ADOPTED THE VALUATION GIVEN BY THE FIRST LAND ACQUI SITION COLLECTOR, GOVERNMENT OF WEST BENGAL VIDE ITS LETTER DATED 29. 01.2016 AND DETERMINED THE CAPITAL GAINS. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(APPEALS) AND TH E FIRST APPELLATE AUTHORITY UPHELD THE ORDER OF THE ASSESSING OFFICER . AGGRIEVED WITH THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE IS IN A PPEAL BEFORE THE TRIBUNAL. I.T.A. NO. 2150/KOL./2016 ASSESSMENT YEAR: 2012-2013 PAGE 3 OF 4 4. AFTER HEARING THE RIVAL CONTENTIONS, I FIND THAT THE LETTER OF THE FIRST LAND ACQUISITION COLLECTOR, GOVERNMENT OF WEST BENG AL RELIED UPON BY THE ASSESSING OFFICER, WAS NOT FURNISHED TO THE ASS ESSEE. THIS ENQUIRY WAS MADE BEHIND THE BACK OF THE ASSESSEE. WHEN THE EVID ENCE IS RELIED UPON BY THE ASSESSING AUTHORITY, THE PRINCIPLES OF NATUR AL JUSTICE DEMAND THAT THE ASSESSEE SHOULD BE CONFRONTED WITH THE SAID EVI DENCE. AS THIS WAS NOT DONE, HENCE I HOLD THAT RELIANCE CANNOT BE PLACED B Y THE ASSESSING OFFICER ON THE LETTER OF THE FIRST LAND ACQUISITION COLLECT OR, GOVERNMENT OF WEST BENGAL. THE VALUATION OF THE PROPERTY WAS GIVEN BY THE REGISTERED VALUER EMPANELLED BY THE INCOME TAX DEPARTMENT. IF THE ASS ESSING OFFICER WAS NOT IN AGREEMENT WITH THE VALUATION GIVEN BY THE RE GISTERED VALUER EMPANELLED WITH THE INCOME TAX DEPARTMENT, THEN THE PROPER COURSE WOULD HAVE BEEN TO REFER THIS VALUATION TO THE DEPA RTMENTAL VALUATION OFFICER. 5. UNDER THESE CIRCUMSTANCES, I AM OF THE CONSIDERE D OPINION THAT THE VALUATION FURNISHED BY THE REGISTERED VALUER HAS TO BE ACCEPTED AND THE CAPITAL GAINS RECOMPUTED ACCORDINGLY. AS THE ASSESS EE HAS DONE THIS EXERCISE, THE ASSESSING OFFICER IS DIRECTED TO ACCE PT THE CAPITAL GAINS CALCULATION AS RETURNED BY THE ASSESSEE. IN THE RES ULT, THE ADDITION MADE IS DELETED AND THE APPEAL OF THE ASSESSEE IS ALLOWE D. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 8 TH , 2017. SD/- J. SUDHAKAR REDDY (ACCOUNTANT MEMBER) KOLKATA, THE 8 TH DAY OF FEBRUARY, 2017 COPIES TO : (1) SRI PRADIP KUMAR DAS, C/O. V.N. PUROHIT & CO., CHARTERED ACCOUNTNATS, DIAMOND CHAMBERS, UNIT-III, 4 TH FLOOR, SUIT NO. 4G, 4, CHOWRINGHEE LANE, KOLKATA-700 016 I.T.A. NO. 2150/KOL./2016 ASSESSMENT YEAR: 2012-2013 PAGE 4 OF 4 (2) INCOME TAX OFFICER, WARD-1(3), DURGAPUR, AAYAKAR BHAWAN, AAYAKAR BITHI, DURGAPUR-713 216 (3) COMMISSIONER OF INCOME-TAX (APPEALS), DURGAPU R, (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.