INCOME TAX OFFICER, WARD-7(1), HYDERABAD V. RAHMATHUNNISA BEGUM, HYDERABAD

ITA 239/Hyd/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2515 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 06-05-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 11-03-2024
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K.C. DEVADAS
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Valuation report
• Section: 50C

Judgement Text

ITA No 239 of 2024 Rahmathunnisa Begum Page 1 of 6 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B‘ Bench, Hyderabad Before Shri Laliet Kumar, Judicial Member And Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.239/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2013-14) Income Tax Officer Ward 7(1) Hyderabad Vs. Smt. Rahmathunnisa Begum, Hyderabad PAN: CHFPB7761R (Appellant) (Respondent) राज̾ व Ȫारा/Revenue by: Shri Kumar Pranav, CIT(DR) िनधाŊįरती Ȫारा/Assessee by: Shri K.C. Devadas, CA with Shri Shabbir Ali Khan (Assessee) सुनवाई की तारीख/Date of hearing: 07/05/2024 घोषणा की तारीख/Pronouncement: 07/05/2024 आदेश/ORDER Per Laliet Kumar, J.M This appeal filed by the Revenue is directed against the order dated 21.12.2023 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2013014. 2. The Revenue raised the following grounds: ITA No 239 of 2024 Rahmathunnisa Begum Page 2 of 6 3. Facts of the case, in brief, are that in the present case the assessee sold her property admeasuring 2 Acres and 10 Guntas situated at Sy. No.77, Hafiz Pet Village, Serilingampally, R.R. District to M/s. Calvari Temple Foundation for a sale consideration of Rs.3,15,00,000/- though the SRO value of the property was Rs.11,96,80,000/-. The learned Assessing Officer relying upon the section 50C of the I.T. Act made addition in the hands of the assessee being the registered owner of the property for an amount of Rs.8,59,40,800/-. 4. Feeling aggrieved, the assessee preferred an appeal before the learned CIT (A) NFAC and raised the following grounds: ITA No 239 of 2024 Rahmathunnisa Begum Page 3 of 6 5. The learned CIT (A) NFAC has decided Ground No.2 of the assessee’s appeal and also decided the other grounds in Para 3.1.2 of his order: 5.1 The learned CIT (A) NFAC had remanded back the matter for the limited purpose of seeking report from the DVO as to what was the market value of the said property. Against the above said direction mentioned in Para 3.5 of the order of the learned CIT (A) NFAC, the Revenue is in appeal before the Tribunal. 6. The learned DR had submitted that once the SRO value of the property was found to be Rs.11,96,80,000/-, then it is not permissible in law for the learned CIT (A) NFAC to remand back the matter to the Assessing Officer/DVO for determining the market value of the property. He had drawn our attention to the grounds raised before the learned CIT (A) NFAC. 7. Per contra, the learned AR submitted that the direction issued by the learned CIT (A) NFAC is in accordance with ITA No 239 of 2024 Rahmathunnisa Begum Page 4 of 6 law and he relied upon the decision of the Kolkata High Court in the case of Sunil Kumar Agarwal reported in 372 ITR 83 and also in the case of Smt. P. Sugandha and the provision of section 50(2) of the I.T. Act. 8. We have heard the rival arguments made by both the sides and perused the material available on record. In fact, the assessee during the assessement proceedings had submitted a claim that the value adopted by the Assessing Officer on the basis of the Stamp Valuation Authority was not appropriate and was far below the fair market value as the property was under litigation and would not have fetched the value as mentioned by the Stamp Valuation Authority. In our view, the learned CIT (A) NFAC had merely remanded back the matter to the file of the Assessing Officer which is in conformity with the provision of section 50C(2) of the Act. Further, we are of the considered opinion that instead of directing the Assessing Officer to get the valuation report from the DVO, the above said exercise should have been carried out by the learned CIT (A) LEARNED CIT (A) NFAC, himself in view of the powers conferred upon the CIT (A) as mentioned in section 251(1) of the I.T. Act wherein it is mentioned that the learned CIT (A) shall either confirm, reduce, enhance or annul the assessment. However, there is no power given to the learned CIT (A) to remand the matter to the file of the Assessing Officer. Further, this view of the Bench is also fortified by the provisions of section 250, wherein it is mentioned that the Commissioner may make further inquiry as he deemed fit and he may direct the Assessing Officer ITA No 239 of 2024 Rahmathunnisa Begum Page 5 of 6 to make further inquiries and report the result of the said inquiry to the CIT (A). In our considered opinion, the direction should have been issued by the learned CIT (A) NFAC to the Assessing Officer to obtain the report from the DVO and submit the copy of the said report to the learned CIT (A) NFAC and after receiving the report, learned CIT (A) NFAC should have decided the matter himself. 9. In the light of the above discussion, we deem it proper that the direction issued by the learned CIT (A) NFAC is required to be modified and accordingly we direct the Assessing Officer to refer the matter to the DVO and seek the report from the DVO as mentioned u/s 142A of the I.T. Act and estimate the value of the property which was subject matter of the present appeal. 10. In the result, appeal filed by the Revenue is allowed for statistical purposes. Order pronounced in the Open Court on 7 th May, 2024. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (LALIET KUMAR) JUDICIAL MEMBER Hyderabad, dated 7 th May, 2024 Vinodan/sps ITA No 239 of 2024 Rahmathunnisa Begum Page 6 of 6 Copy to: S.No Addresses 1 Income Tax Officer, Ward 7(1), Hyderabad 2 Smt. Rahmathunnisa Begum, Hyderabad 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order