Shri Dr.Hiteshbhai Amichand Patel, Himatnagar V. The Dy.CIT.,S.K.Circle, Himatnagar

ITA 2470/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1407 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 07-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 05-11-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Depreciation; Valuation report
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 2470 /AHD/201 2 / ASSESSMENT YEAR : 200 8 - 0 9 DR. HITESHBHAI AMICHAND PATEL, HARSH HOSPITAL, UMIYA COMPLEX, NR.MEHTA PETROL PUMP, HIMMATNAGAR - 383001 PAN : ABEPP 1040 J VS DCIT, SK CIRCLE, HIMMATNAGAR / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI S.N. DIVETIA, AR REVENUE BY : SHRI K. MADHUSUDAN, SR DR / DATE OF HEARING : 0 7 / 0 6 /201 6 / DATE OF PRONOUNCEMENT: 09 / 06 /201 6 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMI SSIONER OF INCOME - TAX (APPEALS) - VI II , AHMEDABAD DATED 22 . 0 8 .201 2 FOR ASSESSMENT YEAR 200 8 - 0 9 . 2. GROUND NO.1 REGARDING VALIDITY OF RE - OPENING OF ASSESSMENT U/S 147 IS NOT PRESSED; HENCE DISMISSED. 3. REMAINING GROUNDS ARE AS UNDER: - II ) ADDITION OF RS.49,480/ - BY WAY OF UNDISCLOSED INVESTMENT IN CONSTRUCTION OF HOSPITAL BUILDING. III ) ADDITION OF RS.51,180/ - ON THE GROUND THAT APPELLANT HAS CLAIMED DEPRECIATION ON THE PREMISES USED BY DR. MANOJ SUTHAR AND FOR MEDICAL STORE AND LABORATORY TOTALING 1950 SQ. FT. OUT OF 6600 SQ. FT. OWNED BY THE APPELLANT. 4 . I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. APROPOS SECOND GROUND, THE IMPUGNED ADDITION HAS BEEN MADE ON THE BASIS OF DIFFERENCE IN THE VALUATION REPORT AND THE ASSESSEES DECLARED COST OF CONSTRUCTION FOR THE YEAR UNDER CONSIDERATION. THE TOTAL VALUATION SMC - ITA NO. 2470/AHD/ 2012 DR. HITESHBHAI AMICHAND PATEL VS. DCIT AY : 200 8 - 0 9 2 BETWEEN THE ASSESSEES COST OF CONSTRUCTION AND VALUATI ON REPORT IS ADMITTEDLY LESS THAN 15%. A POST FACTO VALUATION OF PROPERTY IS AN ESTIMATE AS COMPARED TO ASSESSEES MAINTAINED RECORD. THE DIFFERENCE BEING NEGLIGIBLE, IN MY CONSIDERED VIEW, THE ADDITION IN QUESTION IS UNCALLED - FOR ; HENCE IT IS DELETED. THUS, THIS GROUND OF THE ASSESSEE IS ALLOWED. 4.1 APROPOS THIRD GROUND, THE PREMISES BEING ADMITTEDLY RENTED , DEPRECIATION HAS BEEN RIGHTLY DISALLOWED BY THE AUTHORITIES BELOW. CONSEQUENTLY, THIS GROUND OF THE ASSESSEE IS DISMISSED. 5 . IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 9 T H JUNE , 201 6 AT AHMEDABAD. SD/ - R.P. TOLANI ( JUDICIAL MEMBER ) AHMEDABAD; DATED 0 9 / 0 6 /201 6 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD