ITO, Meerut V. Shri Naeemuddin, Meerut

ITA 251/DEL/2011

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0090 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 22-03-2011
• Assessment Year: 1992-1993
• Appeal Filed On: 17-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BANITA DEVI NAORAM SENIOR
• Assessee Lawyers: ABDUL WAHAD
• Keywords: Cost of acquisition; Tax effect; Set aside; Capital Gains

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NOS.248 TO 252/DEL./2011 (ASSESSMENT YEARS : 1988-89, 1990-91 TO 1993-94) ITO, WARD 2 (1), VS. SHRI NAEEMUDDIN, MEERUT. S/O LATE SHRI RAMJAN KHAN, 412, OPP. BHOPAL SINGH KI KOTHI, SHYAM NAGAR, MEERUT. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ABDUL WAHAD, ADVOCATE REVENUE BY : MS.BANITA DEVI NAORAM, SENIOR DR ORDER PER BENCH : ALL THESE FIVE APPEALS FILED BY THE ASSESSEE ARISE OUT OF THE ORDER OF CIT (APPEALS), MEERUT DATED 29.10.2010. THE GROUNDS O F APPEAL READ AS UNDER :- 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN L AW AND ON FACTS IN DIRECTING THE A.O. TO ADOPT THE RATE OF COST OF ACQUISITION AT RS. 20/- PER SQ. YARD IGNORING THE STAND OF THE A.O. WH O ADOPTED THE RATE AT RS. 12/- PER SQ. YD. 2. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN L AW AND ON FACTS IN DIRECTING TO EXCLUDE THE AMOUNT OF ADDITIO NAL COMPENSATION AND SOLATIUM WHILE COMPUTING INTEREST IGNORING THAT THE ADJ IV MEERUT, ON WHOSE ORDER THE INTEREST WAS ALLOWED OBS ERVED THAT THE INTEREST WILL BE ALLOWED ON THE ENTIRE AMOUNT OF CO MPENSATION, ADDITIONAL COMPENSATION AND SOLATIUM PUT TOGETHER A ND ALSO IGNORING THAT THE INTEREST PERTAINS TO THE PERIOD FROM 26/8/ 87 TO 19/3/92 WHEREAS THE CIVIL APPEAL IS DATED 1995. ITA NOS.248 TO 252/DEL./2011 2 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) MAY BE ASIDE A ND THAT OF THE A.O. RESTORED. 2. IN GROUND NO.1, THE ISSUE INVOLVED IS REGARDING THE COST OF ACQUISITION FOR WORKING OUT THE CAPITAL GAINS. CERTAIN LAND OF THE ASSESSEE WITH OTHER CO-OWNERS WAS ACQUIRED BY U.P. AWAS VIKAS PARISHAD, MEERUT ON 26.8.1987 AND ASSESSEE RECEIVED CERTAIN COMPENSATION FOR THE SAME. THE AS SESSEE WORKED OUT THE CAPITAL GAIN BY SHOWING THE COST OF ACQUISITION AT RS.90/- PER SQ.YARD. THE ASSESSING OFFICER TREATED THE SAME AS VERY HIGH FOR AGRICULTU RAL LAND AND ADOPTED THE COST OF ACQUISITION AT RS.12/- PER SQ. YARD. IN THE FIRST ROUND, THE CIT (A) SET ASIDE THE ORDER OF ASSESSING OFFICER DIRECTING TO DECIDE DE N OVO. IN THE SECOND ROUND, THE ASSESSING OFFICER ADOPTED RATE OF RS.12/- PER SQ.YA RD. CIT (A) GRANTED PART RELIEF BY ADOPTING RATE AT RS.20/- PER SQ.YARD BY RELYING ON THE DECISION OF ITAT IN ITA NO.1104/DEL/96 DATED 16.5.2002 IN THE CASE OF SHRI ALAUDDIN. IN THIS CASE, ITAT DIRECTED TO ADOPT THE COST OF ACQUISITION AT RS.20/ -. AFTER HEARING BOTH SIDES ON THIS GROUND, WE ALSO FIND NO MERITS IN REVENUES APPEAL ON THIS ISSUE, THEREFORE, WE SUSTAIN THE ORDER OF CIT (A). ACCORDINGLY, THIS GR OUND OF REVENUES APPEAL STAND DISMISSED. 4. IN THE SECOND GROUND, THE ISSUE INVOLVED IS REGA RDING THE INTEREST ON THE ADDITIONAL COMPENSATION AND SOLATIUM. ON THIS ISSU E ALSO, WE HAVE HEARD BOTH THE SIDES AND WE FIND THAT THE HON'BLE SUPREME COURT IN THE ASSESSEES OWN CASE IN CIVIL APPEAL NO.6343/1/1995 HAS CLARIFIED AND DIREC TED THAT CLAIMANTS ARE NOT ENTITLED TO INTEREST ON ADDITIONAL AMOUNT U/S 23(1A ) AND SOLATIUM U/S 23(2). THE ITA NOS.248 TO 252/DEL./2011 3 CIT (A) HAS GRANTED THE RELIEF. AFTER CONSIDERING THESE FACTS, WE DO NOT FIND ANY MERITS IN THE REVENUES GROUND. THE HON'BLE SUPREM E COURT HAS DIRECTED THAT CLAIMANTS SHALL NOT BE ENTITLED FOR INTEREST ON ADD ITIONAL COMPENSATION AND SOLATIUM. THEREFORE, WE SUSTAIN THE ORDER OF CIT (A) AND DISM ISS THIS GROUND OF REVENUES APPEAL. 6. GROUND NO.3 IS GENERAL IN NATURE AND DOES NOT RE QUIRE ANY ADJUDICATION. 7. WE WOULD ALSO LIKE TO STATE THAT IN ALL THE FIVE APPEALS, THE TAX EFFECT IS BELOW RS.3 LACS AND ON THAT ACCOUNT ALSO, THESE APPEALS A RE NOT MAINTAINABLE. 8. IN THE RESULT, ALL THE APPEALS OF THE REVENUE ST AND DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 25 TH DAY OF MARCH, 2011. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 25 TH DAY OF MARCH, 2011 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT (A), MEERUT. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.