Shahin Akhtar, Islampur V. ITO, Ward - 2(4), Raiganj, Uttar Dinajpur, Uttar Dinajpur

ITA 2410/KOL/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7985 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 04-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDER
• Assessee Lawyers: R K SAHA
• Keywords: Sale consideration of property below Jantri Value; Fair market value
• Section: 56(2)(vii)(b); 143(3); 50C; 56

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI S.S.GODARA, JM & HONBLE SHRI M.BALAGANESH, AM] I.T.A NO. 2410/KOL/2017 ASSESSMENT YEAR : 2014-1 5 SHAHIN AKHTAR -VS- ITO, WARD-2(4 ), UTTAR DINAJPUR [PAN: AKNPA 4249 C] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI R.K. SAHA, AD VOCATE FOR THE RESPONDENT : SHRI SANKAR HALDER, ADDL. CIT SR. DR DATE OF HEARING : 26.12.2018 DATE OF PRONOUNCEMENT : 01.01.2019 ORDER PER M.BALAGANESH, AM 1. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-JALPAIGURI [IN SHORT THE LD CIT (A)] IN APPEAL NO.51/CIT(A)/JAL/2016-17 DATED 30.08.2017 AGAINST THE ORDER PASSED BY ITO, WARD- 2(4), UTTAR DINAJPUR[ IN SHORT THE LD AO] UNDER S ECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 30.08.2016 FOR THE ASSESSMENT YEAR 2014-15. 2. THE ONLY EFFECTIVE ISSUE TO BE DECIDED IN THIS A PPEAL IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN UPHOLDING THE ADDITION MADE U/S 56 (2)(VII) OF THE ACT, IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 2 ITA NO.2410/KOL/2017 SHAHIN AKHTAR A.YR. 2014-15 2 3. THE BRIEF FACTS OF THIS ISSUE IS THAT THE ASSESS EE PURCHASED THREE PLOTS OF LANDS ADJACENT TO EACH OTHER AS PER DETAILS BELOW: DETAILS OF LAND AREA OF LAND SOLD ASSESSED VALUE PURCHASE VALUE REGISTRATION DATE AND DEED NO. 4.AREA:0.64 ACRE PLOTNO.- 218/214/227 KHATIAN NO. RS- 28, 181, LR-295 1.14 ACRE 595,806.00 595,806.00 DATE:29/04/2014 DEED NO.-2358 5. PLOT NO. - 929/930/931 1.40 ACRE 5,886,967.00 30,00,000.00 DATE:13/02/2014 DEED NO.- 00664/14 6. PLOT NO. - 01 0.14 ACRE 924,000.00 5,00,000.00 DATE:17/02/2014 THE LD. A.O. ADOPTED THE VALUE DETERMINED BY THE ST AMP VALUATION AUTHORITY AND PROCEEDED TO ADD THE DIFFERENCE IN CONSIDERATION OF RS. 33,10,967/- IN THE ASSESSMENT BY INVOKING THE PROVISION OF 56(2)(VII)(B) OF THE ACT. THE LD. A.O. OBSERVED THAT THE PROVISION OF 56(2)(VII)(B) OF THE ACT WOULD APPLY TO THE ASSESSMENT YEAR UNDER CONSIDERATION WHEREIN THE ACT SPECIFICALLY PROVIDES FOR MAKING THE ADDITION IN THE HANDS OF THE PURCHASER IF THERE IS A DIFFERENCE BETWEEN T HE PURCHASE CONSIDERATION REFLECTED IN THE SALE DEED AND PURCHASE CONSIDERATION FIXED BY T HE STAMP VALUATION AUTHORITY FOR THE PURPOSE OF LEVY OF STAMP DUTY. THIS ADDITION WAS UP HELD BY THE LD. CIT(A). AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE FIND THAT THE ASSESSEE HAD PURCHASED LANDS ON WHICH A PETROL PUMP WAS PREVIOUSLY FUNCTIONING. IT WAS PLEADED BY THE ASSESSEE THAT TH E PURCHASE CONSIDERATION OF PETROL PUMP LAND WOULD ALWAYS BE LOWER THAN THE ACTUAL MAR KET VALUE AND THE CIRCLE RATE FIXED BY THE STAMP VALUATION AUTHORITY. THE LD. AR BEFORE US STATED THAT THIS FACT WAS DULY BROUGHT TO THE NOTICE OF LOWER AUTHORITIES AND AN O BSERVATION IN THIS REGARD IS ALSO MADE BY THE LD. CIT(A) IN PAGES 4 AND 5 OF HIS ORDER. TH E LD. AR ARGUED THAT IN SUCH A 3 ITA NO.2410/KOL/2017 SHAHIN AKHTAR A.YR. 2014-15 3 SCENARIO, THE LD. A.O. OUGHT TO HAVE REFERRED THE V ALUATION OF THE LAND TO DEPARTMENTAL VALUATION OFFICER IN TERMS OF SECTION 50C(2) OF TH E ACT WHICH ALSO IS INCORPORATED IN PROVISO TO SECTION 56(2)(VII)(B) FOR DETERMINATION OF FAIR MARKET VALUE OF THE PROPERTY. WE FIND LOT OF FORCE IN THIS ARGUMENT OF THE LD. AR . WE HAVE GONE THROUGH THE PROVISION OF SECTION 56(2)(VII)(B) OF THE ACT TOGETHER WITH I TS PROVISO WHICH READS AS UNDER: PROVIDED THAT WHERE THE STAMP DUTY VALUE OF IMMOVA BLE PROPERTY AS REFERRED TO IN SUB- CLAUSE (B) IS DISPUTED BY THE ASSESSEE ON GROUNDS M ENTIONED IN SUB-SECTION (2) OF SECTION 50C, THE ASSESSING OFFICER MAY REFER THE VALUATION OF SUCH PROPERTY TO A VALUATION OFFICER, AND THE PROVISIONS OF SECTION 50C AND SUB- SECTION (15) OF SECTION 155 SHALL, AS FAR AS MAY BE, APPLY IN RELATION TO THE STAMP DUTY VALUE OF SUCH PROPERTY FOR THE PURPOSE OF SUB-CLAUSE (B) AS THEY APPLY FOR VALUATION OF CA PITAL ASSET UNDER THOSE SECTIONS: IN VIEW OF THE AFORESAID SPECIFIC PROVISION CONTAIN ED IN SECTION 56(2)(VII)(B) THE REVENUE OUGHT TO HAVE REFERRED THE VALUATION OF THE LAND TO THE DVO FOR DETERMINATION OF FAIR MARKET VALUE OF THE PROPERTY. ACCORDINGLY, WE DIRECT THE LD. A.O. TO REFER THE CASE TO DVO FOR DETERMINATION OF FAIR MARKET VALUE OF TH E LAND AND DECIDE THE QUANTUM OF ADDITION, IF ANY, IN TERMS OF PROVISO TO SECTION 56 (2)(VII)(B) OF THE ACT. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STAT ISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 01.01.2019 SD/- SD/- [S.S. GODARA] [ M .BALAGANESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 01.01.2019 SB, SR. PS 4 ITA NO.2410/KOL/2017 SHAHIN AKHTAR A.YR. 2014-15 4 COPY OF THE ORDER FORWARDED TO: 1. SHAHIN AKHTAR, WARD-2(4), JHARBARI CHOPRA. 2. CIT(A)-JAL. 3..C.I.T.(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER A SSISTANT REGISTRAR ITAT , KOLKATA BENCHES