Lata Kishan Chand, Visakhapatnam V. THE DCIT, CIRCLE - 3(1), Visakhapatnam

ITA 296/VIZ/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3681 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 02-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P S MURTHY
• Assessee Lawyers: R L N SOMAYAJULU
• Keywords: Sale consideration of property below Jantri Value
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 296 / VIZ /201 4 (ASST. YEAR : 2009 - 10 ) SMT. LATA KISHEN CHAND, D.NO. 9 - 29 - 15, SIRIPURAM, BALAJINAGAR, VISAKHAPATNAM. V S . D CIT, CIRCLE - 3 (1), VISAKHAPATNAM. PAN NO. ADDPK 5094 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.L.N. SOMAYAJULU C A. DEPARTMENT BY : SHRI P.S. MURTHY SR. DR DATE OF HEARING : 03 / 0 8 /201 8 . DATE OF PRONOUNCEMENT : 10 / 08 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , VISAKHAPATNAM , DATED 02 /0 4 /201 4 FOR THE ASSESSMENT YEAR 2009 - 10 . 2. THE FIRST GROUND OF APPEAL RAISED BY THE ASSESSEE IS WITH REGARD TO INVOCATION OF SECTION 50C OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT'). 3 . FACTS RELATING TO THIS ISSUE IN BRIEF ARE THAT ASSESSEE IS AN INDIVIDUAL , FILED HIS RETURN OF INCOME BY ADMITTING INCOME OF 2 ITA NO. 296 /VIZ/2014 (SMT.LATHA KISHAN CHAND ) RS.15,19,200/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND AFTER FOLLOWING DUE PROCEDURE, ASSESSMENT WAS COMPL E TED UNDER SECTION 143(3) OF THE ACT , ON 22/07/2011. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS NOTED THAT ASSESSEE HAS SOLD A SITE ADMEASURING 311 SQ.Y ARDS FOR A CONSIDERATION OF RS. 31.10 LAKHS VIDE SALE DEED DATED 07/08/2008 AND THE SAME WAS REGISTERED BE FORE THE REGISTRARS OFFICE, MADHURAVADA, VISAKHAPATNAM. HOWEVER, IN THE RETURN OF INCOME FILED , THE ASSESSEE HAS DECLARED THE TOTAL SALE CONSIDERATION OF RS. 25.00 LAKHS ONLY . ACCORDINGLY, THE ASSESSING OFFICER AFTER CALLING EXPLANATION FROM THE ASSESSEE, ADOPTED RS. 31.10 LAKHS AS A SALE CONSIDERATION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 50C OF THE ACT. 4 . ON APPEAL BEFORE THE LD. CIT(A), IT WAS SUBMITTED THAT THE SA LE CONSIDERATION WAS PAID ON 31/07/2008 AND THE REGISTRATION WAS SUPPOSED TO TAKE EFFECT ON 31/07/2008. HOWEVER, AS THERE WAS SOME DISPUTE, THE REGISTRATION WAS POSTPO N ED TO 07/08/2008 AND BY THE TIME , THE REVISED VALUATION WAS ADOPTED BY THE REGISTERING A UTHORITY. THE ASSESSEE FILED AN AFFIDAVIT IN THIS REGARD AND SUBMITTED THAT THE ADOPTION OF HIGHER VALUE UNDER SECTION 50C IS NOT JUSTIFIED . THE LD. CIT(A) CONSIDERED THE 3 ITA NO. 296 /VIZ/2014 (SMT.LATHA KISHAN CHAND ) EXPLANATION OF THE ASSESSEE AND REJECTED THE SAME BY OBSERVING AS UNDER: - 5. ....... I HAVE CONSIDERED THE PLEAS RAISED. THE TRANSFER CAN BE SAID TO HAVE BEEN EFFECTED ONLY ON 07/08/2008, WHEN THE TRANSACTION WAS REGISTERED, AND THERE WAS NO CONVEYANCE PRIOR TO THAT. AS A RESULT, THE VALUE ON THE DATE OF SUCH TRANSFER IS REQUIRED TO BE ADOPTED IN TERMS OF SECTION 50C. FURTHER, IT IS NOTED THAT THE STAMP PAPER FOR THE REGISTRATION WAS PURCHASED ONLY ON 06/08/2008. HENCE, THE PLEA THAT THE REGISTRATION WAS SUPPOSED TO HAVE TAKEN PLACE ON 31/07/2008 IS NOT ACCEPTABLE. IN VIEW OF T HE CLEAR PROVISIONS CONTAINED IN SECTION 50C, I FIND THAT THE ASSESSING OFFICER IS JUSTIF I ED IN ADOPTING VALUE OF RS.31,10,000/ - AS THE FULL VALUE OF CONSIDERATION 5. ON APPEAL BEFORE US, LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE REITERATED THE SUBMISSIONS , WHICH WERE MADE BEFORE THE LD. CIT(A). 6 . ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDERS PASSED BY THE AUTHORITIES BELOW. 7 . IN THIS CASE, THE ASSESSEE HAS SOLD A PIECE OF LAND ON 07/08/2008 , AND AS ON THE DAT E OF REGISTRATION, THE SRO VALUE OF THE PROPERTY IS RS. 31,10,000/ - . HOWEVER, THE ASSESSEE HAS ONLY SHOWN AS A SALE CONSIDERATION RECEIVED BY HER AT RS. 25.00 LAKHS. WHEN ASSESSING OFFICER ASKED THE ASSESSEE TO EXPLAIN, IT WAS SUBMITTED THAT ACTUAL REGIS TRATION HAS TOOK - PLACE ON 31/07/2008 AS THERE WAS SOME DISPUTE AND THEREFORE, THE HIGHER VALUE CANNOT BE ACCEPTED. THE ASSESSEE NEITHER FILED ANY SUPPORTIVE EV I DENCE BEFORE THE ASSESSING OFFICER NO R BEFORE THE LD. CIT(A). EVEN 4 ITA NO. 296 /VIZ/2014 (SMT.LATHA KISHAN CHAND ) BEFORE THE TRIBUNAL EXCEPT STATING THAT SALE CONSIDERATION WAS RECEIVED ON 31/07/2008 A S THERE IS A DIS PU TE IN RESPECT OF PROPERTY, BUT NO T FILED ANY SUCH DETAILS. THEREFORE, THE AUTHORITIES BELOW HAVE ADOPTED THE VALUE OF THE PROPERTY AS PER SRO BY C ON SI DER ING SECTION 50C OF THE ACT ON THE DATE OF REGISTRATION. WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMISSED. 8 . THE ANOTHER GROUND OF APPEAL REL A TING TO DEVELOPMENT EXPENSES. 9. THE ASSESSIN G OFFICER DISALLOWED THE ENTIRE EXPENDITURE CLAIMED BY THE ASSESSEE ON ACCOUNT OF DEVELOPMENT / IMPROVEMENT OF THE PROPERTY ON THE GROUND THAT NO EVIDENCE IS FILED. O N APPEAL, LD. CIT(A) HAS CONSIDERED 1.00 LAKH FOR IMPROVEMENT OF THE PROPERTY AND DIRECTED THE ASSESSING OFFICER TO RE - COMPUTE THE CAPITAL GAINS. W E FIND NO INFIRMITY IN THE DIRECTION OF THE LD. CIT(A) TO RE - COMPUTE THE CAPITAL GAINS. THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMISSED. 10 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 0 T H DAY OF AUGUST , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 0 T H AUGUST , 201 8 . 5 ITA NO. 296 /VIZ/2014 (SMT.LATHA KISHAN CHAND ) VR/ - COPY TO: 1. THE ASSESSEE SMT. LATA KISHEN CHAND, D.NO. 9 - 29 - 15, SIRIPURAM, BALAJINAGAR, VISAKHAPATNAM. 2. THE REVENUE DCIT, CIRCLE - 3(1), VISAKHAPATNAM. 3. THE CIT - 1, VISAKHAPATNAM. 4. THE CIT(A), VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.