USHA KOTHARI, MUMBAI V. ITO WD 16(3)1, MUMBAI

ITA 2460/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87999 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2015
• Appeal Filed By: Assessee
• Bench Allotted: F
• Assessment Year: 2005-2006
• Appeal Filed On: 01-04-2013
• Court: TRIBUNAL
• Department Lawyers: JEETENDRA KUMAR
• Assessee Lawyers: SANJEEV M SHAH
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice
• Section: 50C

Judgement Text

IN THE INCO ME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ./I.T.A. NO. 2460/M/20 13 (AY 2005 - 2006) USHA KOTHARI, 29, DR. PAREKH STREET, 403, RAM KRUPA BLDG, PRARTHANA SAMAJ, MUMBAI - 52. / VS. ITO WD 16(3)1, MATRU MANDIR, OPP. BHATIA HOSPITAL, PATIL ESTATE, TARDEO, MUMBAI 400 034. ./ PAN : AGQPK 1078A ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SANJEEV M. SHAH / RESPONDENT BY : SHRI JEETENDRA KUMAR / DATE OF HEARING : 30.12.2014 / DATE OF PRONOUNCEMENT : 14 . 01.2015 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 1.4.2013 IS AGAINST THE ORDER OF THE CIT (A) - 6, MUMBAI DATED 14.2.2013 FOR THE ASSESSMENT YEAR 2005 - 2006. 2. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: IN THE CIRCUMSTANCES AND FACTS OF MY CASE, THE LD CIT (A) HAS ERRED IN A. SUSTAINING THE CALCULATION OF SALE CONSIDERATION OF IMMOVABLE PROPERTY AT RS. 28,74,000/ - AS PER VALUE ADOPTED BY STAMP VALUATION AUTHORITY INSTEAD OF RS. 18,00,000/ - WHICH IS THE ACTU AL CONSIDERATION RECEIVED. B. NOT REFERRING THE MATTER TO THE DEPARTMENTAL VALUER U/S 50C OF THE INCOME TAX ACT, 1961. 3. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE ABOVE GROUNDS AND MENTIONED THAT THE REVENUE MECHANICALLY INVOKED THE PROVISIONS OF SECTION 50C OF THE ACT IGNORING THE ASSESSEES REQUEST FOR REFERRAL OF THE IMPUGNED IMMOVABLE PROPER TY TO THE DEPARTMENTAL VALUATION OFFICER (DVO). HE MERELY MENTIONED THAT THE EXPRESSION USED IN THE PROVISIONS MAY AND THE SAME NEED NOT BE READ AS SHALL DESPITE THE DECISION OF THE ITAT, JODHPUR BENCH IN THE CASE OF MANJULA SINGHAL VS. ITO [2011] 141 TTJ 511, WHICH IS RELEVANT FOR THE PROPOSITION THAT THE EXPRESSION MAY USED IN THE SECTION 50(2) OF THE ACT SHALL BE READ AS 2 SHALL. HE ALSO MENTIONED THAT THE MATTER MAY BE REMANDED TO THE FILE OF THE ASSESSING OFFICER FOR SUCH REFERRAL AFTER COMPLYI NG WITH THE SAID ORDER OF THE TRIBUNAL. HE FURTHER SUBMITTED THAT IT IS THE MANDATORY ON PART OF THE DEPARTMENT TO MAKE SUCH REFERENCE AND IT IS IN THE INTEREST OF PRINCIPLES OF NATURAL JUSTICE. FURTHER, LD COUNSEL SUBMITTED THAT THE PROPERTY IN QUESTION SUFFERS FROM DEFICIENCIES AND THE DETAILS OF WHICH WERE SUBMITTED ALREADY TO THE ASSESSING OFFICER AND THE SAME WERE MERELY IGNORED BEFORE ADOPTING THE VALUES AS PER THE STAMP DUTY VALUATION AUTHORITIES. 4. ON THE OTHER HAND, LD DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE RELEVANT MATERIAL PLACED BEFORE US. AFTER HEARING BOTH THE PARTIES, WE FIND THE REQUEST FOR REFERRAL OF THE PROPERTY TO THE DVO IS REQUIRED AS PER THE PROVISIONS OF SECTION 50(2) OF THE STATUTE. WE ACCORDINGLY DIRECT THE ASSESSING OFFICER TO COMPLY WITH THE CITED DECISION OF THE ITAT, JODHPUR BENCH IN THE CASE OF MANJULA SINGHAL (SUPRA) AND OTHER DECISIONS RELEVANT TO THE SAID PROPO SITION AND RE - DO THE ASSESSMENT AFRESH AFTER OBTAINING THE DVOS REPORT. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN TH E OPEN COURT ON 14 TH JANUARY, 2015. SD/ - SD/ - (SANJAY GARG) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 14 .1.2015 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, 3 ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI