Deepak N.Jain, CHENNAI V. ITO Non Corporate Ward 4(3), CHENNAI

ITA 2613/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3461 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 10-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Capital asset; Capital Gains
• Section: 2(14)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . . . , , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2613/CHNY/2018 [ [ /ASSESSMENT YEAR: 2015-16 SHRI DEEPAK N JAIN, NO.8, ARUNACHALAM STREET, SOWCARPET, CHENNAI 600 079. VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD 4(3). CHENNAI 34. PAN: AJJPD 4 900E ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI D. ANAND, ADVOCATE /RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 25.11.2019 /DATE OF PRONOUNCEMENT : 28.11.2019 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, CHENNAI IN ITA NO.374/17- 18/CIT(A)-5/2017-18 DATED 28.06.2018 FOR THE ASSESSMENT YEAR 2015- 16. ITA NO.2613/CHNY/2018 - 2 - 2. SHRI DEEPAK N. JAIN, THE ASSESSEE, SOLD A PROPERTY FOR WHICH THE VALUE ADOPTED FOR STAMP DUTY WAS MORE THAN THE VALUE DECLARED IN THE SALE DEED. BASED ON THIS INFORMATION, THE ASSESSING OFFICER REOPENED THE ASSESSMENT AND AFTER AFFORDING OPPORTUNITY, ADOPTED THE VALUE SHOWN IN THE SALE DEED AS SALE CONSIDERATION AND ADDED THE DIFFERENCE SUM AS HIS INCOME UNDER THE HEAD LONG TERM CAPITAL GAINS. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE LD.CIT(A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE LD.AR PLEADED THAT THE ASSESSEE SOLD AN AGRICULTURAL LAND SITUATED AT VILLAGE GOI, UMMEDABAD FOR RS.2,51,000/- ON 07.05.2014. HOWEVER, THE REGISTRATION AUTHORITIES HAVE ADOPTED THE STAMP DUTY VALUE AT RS.21,17,544/-. THOUGH IT WAS PLEADED BEFORE THE LD.CIT(A) THAT THE IMPUGNED LAND IS AGRICULTURAL LAND AT RAJASTHAN, WHICH IS NOT A CAPITAL ASSET WITHIN THE MEANING OF SECTION 2(14) AND HENCE THE ASSESSMENT MADE BY THE ASSESSING OFFICER IS NOT CORRECT, THE LD.CIT(A) WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE, HAS DISMISSED THE APPEAL AND HENCE, HE PLEADED THAT THE ASSESSEES APPEAL BE ALLOWED. ITA NO.2613/CHNY/2018 - 3 - 4. PER CONTRA, THE LD.DR SUBMITTED THAT THE NATURE OF LAND IS NOT EXAMINED BY THE ASSESSING OFFICER, AS SEEN FROM THE ASSESSMENT ORDER. HOWEVER, THE ASSESSEE HAS TAKEN A PLEA BEFORE THE LD.CIT(A) THAT THE IMPUGNED LAND IS AN AGRICULTURAL LAND, THE FACTS OF WHICH HAS NOT BEEN EXAMINED. THEREFORE, HE PLEADED THAT THE APPEAL BE UPHELD ON THE BASIS OF ORDERS OF THE LOWER AUTHORITIES. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. SINCE THE NATURE OF THE LAND SOLD IS NOT EXAMINED, WE DEEM IT FIT TO REMIT THIS ISSUE BACK TO THE ASSESSING OFFICER FOR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY ALL MATERIALS IN SUPPORT OF HIS CONTENTION BEFORE THE ASSESSING OFFICER AND COMPLY WITH THE REQUIREMENTS OF THE ASSESSING OFFICER IN ACCORDANCE WITH LAW. THE ASSESSING OFFICER IS ALSO FREE TO CONDUCT APPROPRIATE ENQUIRY AS DEEMED FIT, HOWEVER, HE SHALL FURNISH DUE OPPORTUNITY TO THE ASSESSEE ON THE MATERIALS ETC., TO BE USED AGAINST THE ASSESSEE AND ON DUE CONSIDERATION OF THE ASSESSEES CLARIFICATION / EXPLANATION SHALL PASS THE ORDER IN ACCORDANCE WITH LAW. ITA NO.2613/CHNY/2018 - 4 - 6. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 28 TH NOVEMBER, 2019 IN CHENNAI. SD/- SD/- /CHENNAI, /DATED 28 TH NOVEMBER, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF ( . . . ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER