SHRUTI SHRIVATS RATHI, MUMBAI V. DCIT RG 24(3), MUMBAI

ITA 295/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3759 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Appeal Filed On: 12-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Valuation report
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI BEFORE SHRI R S SYAL, ACCOUNTANT MEMBER & SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.:295/MUM/2011 ASSESSMENT YEAR: 2006-07 SHRUTI SHRIVATS RATHI, VS. THE DY. CIT RANGE 24( 3), PLOT NO.11, CAMA INDUSTRIAL ESTATE, MUMBAI GOREGAON (EAST), MUMBAI- 400 063 PAN :AMNPS4842B (APPELLANT) (RESPONDENT) APPELLANT BY : MR.S L JAIN RESPONDENT BY : MR. RAJARSHI DWIVEDY DATE OF HEARING : 01.04.2013 DATE OF PRONOUNCEMENT : 15.05.2013 ORDER PER SANJAY GARG, JM : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST CONFIRMATION OF ADDITION OF RS.8,15,490/- MADE BY THE AO PERTAIN ING TO LONG TERM CAPITAL GAINS RELEVANT TO A.Y. 2006-07. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E, AN INDIVIDUAL, IS ENGAGED IN THE BUSINESS OF PURCHASE/SALE OF SHARES, LENDING OF FUNDS ETC. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE OFFERED LONG TERM CAPIT AL GAIN ON SALE OF OFFICE IN MITTAL COURT AT RS.13,68,396/-. THE ASSESSEE WAS OWNER T O THE EXTENT OF 1/4 TH SHARE IN THE SAID PROPERTY. THE AO DETERMINED THE VALUATION OF THE PROPERTY AT RS.1,60,05,958 U/S. 50C OF THE IT ACT AND CALCULATE D LONG TERM CAPITAL GAINS AT ITA NO. 295/MUM/2011 AY : 2006-07 2 RS.21,83,889 AS AGAINST THE LONG TERM CAPITAL GAIN OF RS.13,68,396/- OFFERED BY THE ASSESSEE IN HER RETURN OF INCOME, REJECTING THE REQ UEST OF THE ASSESSEE TO REFER THE MATTER TO THE VALUATION OFFICER. THE AO THUS MADE AN ADDITION OF RS.8,15,490/- TO THE INCOME OF THE ASSESSEE U/S. 50C OF THE I.T.ACT. ON APPEAL, THE LEARNED CIT(A) CONFIRMED THE ADDITION. 3. BEFORE US THE LEARNED AR MOVED AN APPLICATION DA TED 30.03.2013 FOR ADMISSION OF NEW EVIDENCES UNDER RULE 29 OF THE APP ELLATE TRIBUNAL RULES 1963, VIDE WHICH THE ASSESSEE HAS WANTED TO PRODUCE THE FOLLOW ING DOCUMENTS AS ADDITIONAL/NEW EVIDENCES: I. THE ASSESSMENT ORDER IN CASE OF ONE OF THE CO-OWNER S HAVING 25% INTEREST RISHABH SARAF DATED 10.12.2008 II. ORDER OF CIT(A) IN CASE OF SHRUTI SARAF DATED 23.12 .2010 III. VALUATION REPORT MADE BY DISTRICT VALUATION OFFICER IN CASE OF RISHABH SARAF DATED 22.11.2010, VALUING THE OFFICE AT RS.1,33,41, 000/- IT HAS BEEN STATED IN THE SAID APPLICATION THAT THE SAID DOCUMENTS ARE VERY ESSENTIAL FOR THE DISPOSAL OF THE CASE ON MERITS. IT HAS BEE N FURTHER STATED THAT THE ASSESSMENT ORDER OF THE ASSESSEE WAS PASSED ON 26.1 1.2008 AND THE VALUATION REPORT WAS MADE BY THE DISTRICT VALUATION OFFICER O N 22.11.2010 AND THAT THE ABOVE NOTED DOCUMENTS WERE NOT IN THE KNOWLEDGE OR POSSES SION OF THE ASSESSEE AT THE TIME OF PASSING OF THE ASSESSMENT ORDER AND THE ORD ER UNDER APPEAL. 4. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY THE L EARNED AR. SINCE THE DOCUMENTS SOUGHT TO BE PRODUCED BY THE ASSESSEE WIL L HAVE A BEARING ON THE MERITS OF CASE OF THE ASSESSEE AND AS THE SAME WERE NOT IN HER KNOWLEDGE/POSSESSION AT THE TIME OF PASSING OF ASSESSMENT ORDER BUT CAME IN TO EXISTENCE THEREAFTER, HENCE, THE APPLICATION OF THE ASSESSEE IS HEREBY ALLOWED A ND THE CASE IS REMANDED BACK TO ITA NO. 295/MUM/2011 AY : 2006-07 3 THE FILE OF THE AO WITH A DIRECTION TO ADMIT THE DO CUMENTS SOUGHT TO BE PRODUCED BY THE ASSESSEE AND MAKE A FRESH ASSESSMENT CONSIDERIN G THE ABOVE DOCUMENTS ALSO, WHICH HAVE BEEN RELIED UPON BY THE ASSESSEE. NEEDL ESS TO SAY, THE AO WILL GIVE PROPER OPPORTUNITY TO THE ASSESSEE TO PRESENT HER C ASE. THE APPEAL IS DISPOSED OFF ACCORDINGLY. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH MAY 2013. SD/- SD/- (R S SYAL) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DT : 15 TH MAY, 2013 SA COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE C.I.T. CONCERNED MUMBAI 4. THE CIT (A) CONCERNED MUMBAI 5. THE DR, E - BENCH, ITAT, MUMBAI //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI