Prakash Chand Dwarka Das HUF, Kanpur V. Dy. Commissioner of Income Tax,, Kanpur

ITA 216/LKW/2013

• Counselvise Citation: 21623714 RSA 2013
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 30-03-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 04-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PUNIT KUMAR
• Assessee Lawyers: P K KAPOOR
• Keywords: Sale consideration of property below Jantri Value; Fair market value
• Section: 50C

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 216 /LKW/201 3 ASSESSMENT YEAR:20 07 - 20 08 M/S PRAKASH CHAND DWARKA DAS , 11 MOTI BHAWAN, 52/1, COLLECTORGANJ, KANPUR PAN:AA DHG9565J VS. D.C. I.T. RANGE - 1 , KANPUR (APPELLANT) (RESPONDENT) & ITA NO. 324 /LKW/201 3 ASSESSMENT YEAR:20 07 - 20 08 D.C. I.T. RANGE - 1 , KANPUR VS. M/S PRAKASH CHAND DWARKA DAS , 11 MOTI BHAWAN, 52/1, COLLECTORGANJ, KANPUR PAN:AA DHG9565J (APPELLANT) (RESPONDENT) A SSESSEE BY SHRI P. K. KAPOOR, C.A. RE VENUE BY S RI PUNIT KUMAR , SR. DR DATE OF HEARING 30 /0 3 /201 5 DATE OF PRONOUNCEMENT 30 /0 4 /201 5 O R D E R PER A. K. GARODIA, A.M. T H ESE ARE CROSS APPEAL S DIRECTED AGAINST THE ORDER OF LEARNED CIT (A) II, KANPUR DATED 31 . 0 1 .201 3 FOR A.Y. 20 07 20 08 . 2 2. BRIEF FACTS ARE THAT THE ASSESSEE SOLD A LAND IN THIS YEAR FOR A CONSIDERATION OF RS. 90 LACS . ITS VALUE FOR STAMP DUTY PURPOSES WAS RS. 205,60,820/ - . THE A.O. INVOKED THE PROVISIONS OF SECTION 50C AND ADOPTED THIS STAMP DUTY VALUE TO COMPUTE CAPITAL GAIN. WHEN THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE CIT (A) , HE OBTAINED REPORT OF DVO AS PER WHICH, FAIR MARKET VALUE OF THE PR OPERTY WAS REPORTED AT RS. 116.66 LACS @ RS. 185/ - PER SQ. MTR. BUT LEARNED CIT (A) HELD THAT THE RATE SHOULD BE ADOPTED @ RS. 206/ - PER SQ. MTR. IN THIS MANNER, HE DIRECTED THE A.O. TO ADOPT RS. 206/ - PER SQ. MTR. A S PER WHICH THE VALUE COMES TO RS. 129,9 0,360/ - . NOW, THE REVENUE IS IN APPEAL FOR PART RELIEF ALLOWED BY LEARNED CIT (A) AND THE ASSESSEE IS IN APPEAL FOR PART ADDITION CONFIRMED BY HIM. 3 . LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER. LEARNED A .R. OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT (A) IN RESPECT OF THE RELIEF ALLOWED BY HIM . REGARDING PART ADDITION SUSTAINED BY HIM, H E SUBMITTED THAT IN ANY CASE, THE VALUE REPORTED BY DVO AT RS. 116.66 LACS SHOULD NOT BE EXCEEDED. 4 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT AS PER SUB SECTION (2) OF SECTION 50C, IF THE MATTER IS REFERRED TO DVO, SECTION 16A OF WEALTH TAX ACT, 1957 SHALL APPLY. AS PER SUB SECTION (6) OF SECTION 16A OF WEALTH TAX ACT, 1957, THE ASSESSING OFFICER HAS TO COMPLETE THE ASSESSMENT IN CO NFORMITY WITH THE ESTIMATE OF THE VALUATION OFFICER. REGARDING REFERRING THE MATTER TO DVO BY CIT (A), WE DO NOT 3 FIND ANY INFIRMITY IN THE ORDER OF CIT (A) BECAUSE AS PER A JUDGMENT OF HONBLE CALCUTTA HIGH COURT, EVEN IF NO REQUEST IS MADE BY THE ASSESSEE FOR REFERRING THE MATTER TO DVO, SUCH REFERENCE SHOULD BE MADE. AS PER SUB SECTION (6) OF SECTION 16A OF WEALTH TAX ACT, 1957, THE ESTIMATE OF DVO IS TO BE ADOPTED. HENCE, WE HOLD THAT IN THE FACTS OF THE PRESENT CASE, THE CAPITAL GAIN SHOULD BE COMPUTED BY THE A.O. BY ADOPTING THE VALUE AS PER DVO I.E. RS. 116.66 LACS. ACCORDINGLY, THE GROUNDS OF THE REVENUE ARE REJECTED AND THE GROUNDS OF THE ASSESSEE ARE PARTLY ALLOWED. 5 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED AND THE APPEAL OF THE ASSES SEE IS PARTLY ALLOWED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 /0 4 /201 5 *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR