ITO 16(1)-3, MUMBAI V. SAVITA HEMRAJANI, MUMBAI

ITA 2864/MUM/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8988 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 06-09-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 12-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJARSHI DWIVEDI
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Valuation report

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH J BENCH BEFORE SHRI B.R.MITTAL(JUDICIAL MEMBER) AND SHRI RAJENDRA (ACCOUNTANT MEMBER) ITA NO.2864/MUM/2010 ASSESSMENT YEAR: 2005-06 ITO 16(1)-3, MATRU MANDIR, TARDEO ROAD, MUMBAI. SAVITA HEMRAJANI, 203A, SKY SCRAPER, 74, WARDEN ROAD, MUMBAI-400 006 PA NO.AAXPH 8364 H (APPELLANT) VS. (RESPONDENT) APPELLANT BY : RAJARSHI DWIVEDI RESPONDENT BY: JAYESH DADIA DATE OF HEARING: 6 .9.2012 DATE OF PRONOUNCEMENT: 14.9.2012 ORDER PER B.R.MITTAL, JM: THE DEPARTMENT HAS FILED THIS APPEAL FOR ASSESSMEN T YEAR 2005-06 AGAINST ORDER DATED 29.1.2010 OF LD CIT(A) -27, MUMBAI. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS AS TO WHETHER LD CIT(A) IS JUSTIFIED TO DIRECT THE AO TO TAKE THE VALUE OF LAND AS ON 1.4.1 981 AS PER THE VALUATION REPORT FILED BY THE ASSESSEE AT THE TIME OF ASSESSMENT PROCEEDIN GS THOUGH AT THE TIME OF FILING RETURN OF INCOME, ASSESSEE ESTIMATED THE VALUE AT R S.50,000 WHEREAS THE VALUE DETERMINED BY THE APPROVED VALUER AS ON 1.4.1981 WA S AT RS.9,24,700 AS FAIR MARKET VALUE BECAUSE THE SAID PROPERTY WAS ACQUIRED IN APR IL, 1971. 3. WE HAVE PERUSED ORDERS OF AUTHORITIES BELOW AND HAVE HEARD REPRESENTATIVES OF PARTIES. AT THE TIME OF HEARING, LD D.R. RELIED ON ORDER OF AO AND WHEREAS LD A.R. SUBMITTED THAT ON IDENTICAL FACTS, THE ISSUE IS COV ERED IN FAVOUR OF ASSESSEE BY THE DECISION DATED 30.11.2010 OF ITAT MUMBAI IN THE CAS E OF MRS GOPI S SHIVNANI VS ITO, 133 ITD 172(MUMBAI), WHEREIN, IT WAS HELD THAT THE ACT PERMITS THE ASSESSEE TO ADOPT THE FAIR MARKET VALUE AS ON 1.4.1981 OR THE ACTUAL IF IT WAS ACQUIRED PRIOR TO 1.4.1981. ITA NO.2864/MUM/2010 ASSESSMENT YEAR: 2005-06 2 SINCE THE ASSESSEE CHOSE TO FILE THE VALUATION REPO RT TAKING THE VALUE AS ON 1.4.1981 DURING THE COURSE OF ASSESSMENT PROCEEDINGS WHEN TH E AO CHOSE TO MODIFY THE SALE VALUE AS PER SECTION 50C, THE ASSESSEE WAS WELL WIT HIN HER RIGHTS TO CHOOSE THE VALUE AS PER THE PROVISIONS OF THE ACT. WE AGREE WITH LD A. R. THAT CASE OF THE ASSESSEE IS SQUARELY COVERED BY THE DECISION OF ITAT IN THE CAS E OF MRS GOPI S SHIVNANI (SUPRA). HENCE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD CIT(A) AND THE SAME IS UPHELD BY REJECTING THE GROUND OF APPEAL TAKEN BY DEPARTMENT. 4. IN THE RESULT, APPEAL FILED BY REVENUE IS DISMIS SED. PRONOUNCED IN THE OPEN COURT ON 14 TH SEPTEMBER, 2012 SD/- (RAJENDRA ) ACCOUNTANT MEMBER SD/- (B.R. MITTAL) JUDICIAL MEMBER MUMBAI, DATED 14 TH SEPTEMBER, 2012 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),27, MUMBAI 4. COMMISSIONER OF INCOME TAX, CITY XVI , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH J MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI