Gupta Chemical Industries, Ranchi V. DCIT, Circle-1, Ranchi

ITA 273/RAN/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8707 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 13-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTI
• Assessee Lawyers: D SANNIGARHI
• Keywords: Sale consideration of property below Jantri Value; Retrospective amendment
• Section: 143(3); 50C; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH E COURT AT KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 27 3 / RAN / 201 8 ASSESSMENT YEARS :2014-15 GUPTA CHEMICAL INDUSTRIES, OLD PEACE ROAD, LAXMI NILAYAM, H.B. ROAD, LALPUR, RANCHI-834001 [ PAN NO.AAFFG 9715 M ] V/S . DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1 CENTRAL REVENUE BUILDING (ANNEXE), MAIN ROAD, RANCHI-834001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI D.SANNIGARHI, C.A /BY RESPONDENT SHRI A.K. MOHANTI, ADDL. CIT-DR /DATE OF HEARING 21-07-2020 /DATE OF PRONOUNCEMENT 21-07-2020 / O R D E R PER BENCH (ORAL):- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-RANCHIS ORDER DATED 26.06.2018, PASSED IN CASE NO. CIT(A), RANCHI/10488/2016-17 IN VOLVING PROCEEDINGS U/S 143(3) THE INCOME TAX ACT, 1961; IN SHORT THE ACT . HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE DURING THE COURSE OF HEARING THAT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT LIS SEEKS TO REVERSE BOTH THE LOWER ITA NO.273/RAN/2018 A.Y. 2014-15 GUPTA CHEMICAL INDS. VS. DCIT CIR-1, RAN PAGE 2 AUTHORITIES ACTION INVOKING SEC. 50C ADDITION OF 20.33 LAKHS IN THE COURSE OF ASSESSMENT AND UPHELD IN THE LOWER APPELLATE PROCEE DINGS. SUFFICE TO SAY, CASE FILE AND MORE PARTICULARLY THE CIT(A)S LOWER APPELLATE ORDER IN PARA-5.8 INDICATE THAT THE ASSESSEE / VENDOR HAD ENTERED INT O THE CORRESPONDING AGREEMENT TO SELL ON 18.10.2007, RECEIVED CHEQUE PA YMENT OF 12 LAKH AT THAT TIME AND EXECUTED THE SALE DEED ON 21.09.2013 I.E. IN THE RELEVANT PREVIOUS YEAR. THIS MADE BOTH THE LOWER AUTHORITIES TO INVOK E SEC. 50C OF THE ACT. 3. THE ISSUE THAT REQUIRES OUR APT ADJUDICATION IN THE INSTANT LIS AS PER THE ABOVE FACTS IS THAT OF APPLICATION FIRST AND SECOND PROVISO TO SEC. 50C(1) OF THE ACT INSERTED BY THE FINANCE ACT, 2016 W.E.F. 01.04. 2017 ACCEPTING THE SALE CONSIDERATION GOING BY THE AGREEMENT VALUE IN THE C ASE THE FULLER PART AMOUNT; AS THE CASE MAY BE, BEEN RECEIVED BY THE APPROVED M ODE(S). THE CIT(A) IS OF THE OPINIONS THAT THE SAID PROVISO CARRIAGE PROSPEC TIVE EFFECT ONLY. MR.MOHANTI ALSO REITERATES THE SAME REASONING THAT THE ABOVE S TATED PROVISO DOES NOT APPLY WITH RETROSPECTIVE EFFECT. WE FIND NO MERIT I N THE INSTANT ARGUMENT SINCE THIS TRIBUNALS CO-ORDINATE BENCH DECISION IN DHARAMSHIBHAI SONANI V/S ASSISTANT COMMISSIONER OF INCOME TAX (2016) 161 ITD 627 (AHD) HAS ALREADY HELD THAT FOREGOING TWIN PROVISION(S) ARE IN THE MA TTER OF AN ATTEMPT BY THE LEGISLATURE TO MITIGATE HARDSHIPS AND THEREFORE CAR RIES RETROSPECTIVE EFFECT ONLY . WE ADOPT THE SAME REASONING MUTATIS MUTANDIS AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT AT THE CLOSE OF HEAR ING ON TUESDAY 21 ST JULY, 2020 SD/- SD/- ( ') ($% ') (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) *DKP SR.P.S. &- 21 / 07/ 20 20 ITA NO.273/RAN/2018 A.Y. 2014-15 GUPTA CHEMICAL INDS. VS. DCIT CIR-1, RAN PAGE 3 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-GUPTA CHEMICAL INDS. OLD PEACE ROAD, LA XMI NILAYAM, H.B. ROAD, LALPUR, RANCHI, JHARKHAND-834001 2. /RESPONDENT-DCIT, CIRCLE-1,CENTRAL REVENUE BUILDING (ANNEXE), MAIN ROAD RANCHI-834001 3. 0 3 / CONCERNED CIT RANCHI 4. 3- / CIT (A) RANCHI 5. 6 %%0, 0, / DR, ITAT, RANCHI 6. < / GUARD FILE. /TRUE CO PY/ BY ORDER/ , 0,