Aliashgar Taiyabbhai Chunawala, Surat V. The Income tax Officer,Ward-2(1), Surat

ITA 2410/AHD/2012

• Counselvise Citation: 241020514 RSA 2012
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 30-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Sale consideration of property below Jantri Value
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI G.D. AGRAWAL , VICE PRESIDENT AND SHRI S.S. GODARA , JUDICIAL MEMBER ALIASHGAR TAIYABBHAI CHUNAWALA, PROP. OF F.A. WELDING WORKS , SHED NO. M ARUTI INDUSTRIAL ESTATE, SHOLAP URWALA COMPOUND ROAD NO. 6, UDHYOGNAGAR, UDHNA, SURAT - 394210 PAN: ACKPC7631B (APPELLANT) VS INCOME TAX OFFICE R, WARD 2(1), SURAT (RESPONDENT) REVENUE BY: S H RI PARVEEN KUMAR , SR. D.R. ASSESSEE BY: WRITTEN SUBMISSION DATE OF HEARING : 03 - 08 - 2 015 DATE OF PRON OUNCEMENT : 14 - 08 - 2 015 / ORDER PER : S. S. GODARA , JUDICIAL MEMBER: - THIS ASSESSEE S APPEAL FOR A.Y. 2008 - 09, ARISES FROM ORDER OF THE CIT(A) - I I , SURAT DATED 03 - 08 - 2012 IN APPEAL NO. CAS - I I/2 3 1 /2011 - 12, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN S HORT THE ACT . ITA NO. 2410 /AHD/20 12 ASSESSMENT YEAR 200 8 - 09 I.T.A NO. 2410 /AHD/2 012 A.Y. 2008 - 09 PAGE NO SHRI ALIASHGAR TAIYABBHAI CHUNAWALA VS. ITO . 2 2. CASE CALLED TWICE. NONE APPEARS AT THE ASSESSEE S BEHEST. A PERUSAL OF THE CASE FILE REVEALS THAT THE ASSSESSEE S AUTHORIZED REPRESENT ATIVE HAS FILED WRITTEN SUBMISSION S ON 30 - 07 - 2015. WE TREAT THE SAME AS A PART OF RECORD AND PROCEED TO DECIDE THE APPEAL ON MERITS. 3. THE ASSESSEE S SOLE SUBSTANTIVE GROUND CHALLENGES ADDITION OF RS. 1,56,484/ - AS ALLEGED UNEXPLAINED INVESTMENT U/S. 69B OF THE ACT. FACTS OF THE CASE ARE IN A NARROW COMPASS. THE ASSESSING OFFICER NOTICED THE ASSES SEE TO HAVE JOINTLY SOLD FLAT NO.01 BURHANI MANJIL, BEGAMPURA, SURAT ON 26 - 03 - 2008 FOR RS. 7 LACS. THIS FLAT HAD A N AREA OF 1080 SQUARE FEET. BOTH THESE BROTHERS JOINTLY PURCHASED FLATS NO. 103 & 104 IN THE SAME PREMISES ON THE VERY DAY FOR RS. 4,25,000/ - AND RS. 3,25,000/ - RESPECTIVELY. WE FIND FROM THE ASSESSMENT ORDER DATED 24 - 12 - 2010 THAT THESE FLATS MEASURE D 108 4 SQ. F T . AND 740 SQ. F T. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSESSEE HAD UNDERVALUED THE PURCHASE PRICE OF THESE TWO FLATS. H E ISSUED A SHOW CAUSE NOTICE. THE ASSESSEE FILED REPLY ON 10 - 12 - 2010 INTER ALIA PLEADING NON - APPLICABILITY OF SECTION 50C R.W.S. 69B OF THE ACT IN A PURCHASER S HAND S . THE ASSESSING OFFICER DENIED HAVING APPLIED THE ABOVE SAID STATUTORY PROVISIONS, REITE RATED THE ABOVE STATED PURCHASE VALUE UNDER VALUATION AND MADE THE IMPUGNED A DDITION OF RS. 1,56,484/ - IN ASSESSEE S HANDS. THE CIT(A) HAS CONFIRMED THE ASSESSING OFFICER S ACTION. 4. WE HAVE HEARD THE REVENUE AND GONE THROUGH THE CASE FILE. RELEVANT FACTS NARRATED HEREINABOVE ARE NOT REPEATED FOR THE SAKE OF BREVITY. BOTH THE AUTHORITIES BELOW HAVE SOUGHT TO ADD THE IMPUGNED SUM STATING UNDER VA LUATION OF FLAT PURCHASED IN I.T.A NO. 2410 /AHD/2 012 A.Y. 2008 - 09 PAGE NO SHRI ALIASHGAR TAIYABBHAI CHUNAWALA VS. ITO . 3 ASSESSEE S HANDS. TH E Y THEMSELF DENY APPLICATION OF SECTION 50C OR 69B OF THE ACT IN FACTS OF THIS CASE . THE HON BLE JURISDICTIONAL HIGH COURT IN CASE OF CIT VS. MEGHJIBHAI POPATBHAI TAX APPEAL NO. 50 OF 2013 DECIDED ON 19 - 03 - 2013 HOLD S THAT SECTION 50C R.W.S. 69B ADDITION CANNOT BE MADE IN A PURCHASER S HANDS. WE OBSERVE IN THE SE FACTS THAT SUCH AN ADDITION NOT BASED ON ANY STA TUTORY PROVISION IN THE ACT CAN NOT SURVIVE A JUDICIAL SCRUTINY. WE REITERATE THAT THIS TAX STATUTE IS APPLICABLE ONLY AS PER LETTE R OF THE LAW AND NOT MERE INTENTION OF THE REVENUE AUTHORITIES. WE HOLD THAT ONCE THERE IS NO SPECIFIC PROVISION STATED BEFORE MAKING THE IMPUGNED ADDITION, THE ASSESSEE DESERVES TO SUCCEED ON THIS SCORE ALONE. THE ADDITION IN QUESTION STANDS DELETED. 5. THIS ASSESSEE S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 - 08 - 2015 SD/ - SD/ - (G. D. AGRAWAL ) (S.S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD : DATED 14 /08/2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,