LATE SHRI TRILOKCHANDRA N SOTA, MUMBAI V. ITO 13(3)(4), MUMBAI

ITA 2990/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3538 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 30-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS JADHAV
• Assessee Lawyers: S C TIWARI
• Keywords: Sale consideration of property below Jantri Value; Opportunity of being heard; Fair market value
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO. 2990/MUM/2014 (ASSESSMENT YEAR : 2007-08) LATE SHRI TRILOKCHANDRA N.SOTA, 6, MAHAVIR DARSHAN, KASTURBA ROAD, MULUND WEST, MUMBAI 400 080 PAN: AAIPS 2754 B ... APPELLANT VS. THE INCOME TAX OFFICER 13(3)-4, AAYKAR BHAVAN, MK ROAD, CHURCHGATE, MUMBAI 400020 .... RESPONDENT APPELLANT BY : SHRI S.C.TIWARI RESPONDENT BY : SHRI VISHWAS JADHAV DATE OF HEARING : 08/12/2015 DATE OF PRONOUNCEMENT : 29/02/2016 ORDER THE CAPTIONED APPEAL IS PREFERRED BY THE ASSES SEE AND IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 03/01/ 2014 OF CIT(A)-24, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 2007-08, WHICH IN TURN HAS ARISEN FROM AN ORDER PASSED BY THE ASSESSING OFFICE R DATED 08/11/2012 UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961( IN SHORT THE ACT). 2. IN THIS APPEAL, ALTHOUGH THE ASSESSEE HAS RAISE D MULTIPLE GROUNDS OF APPEAL, BUT THE ONLY DISPUTE RELATES TO THE ADOP TION OF FULL VALUE OF 2 ITA NO. 2990/MUM/2014 (ASSESSMENT YEAR : 2007-08 CONSIDERATION FOR THE PURPOSES OF COMPUTING CAPITAL GAIN ON SALE OF IMMOVABLE PROPERTY LOCATED AT K.M HOUSE, ISSAJI STR EET, MUMBAI. 3. IN BRIEF, THE RELEVANT FACTS ARE THAT THE ASSESE E ALONGWITH CO- OWNER, SHRI RAJNIKANT N. SOTA WAS 50% OWNER OF T HE SAID PROPERTY, WHICH WAS SOLD FOR A CONSIDERATION OF RS.21.00 LACS DURING THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER NOTICED THAT SINCE THE VALUE OF THE PROPERTY ADOPTED FOR THE PURPOSES OF STAMP D UTY VALUATION WAS HIGHER THAN THE STATED CONSIDERATION, HE APPLIED T HE PROVISION OF SECTION 50C OF THE ACT AND CALCULATED CAPITAL GAINS AFTER CONSIDERING THE VALUE ADOPTED BY THE STAMP DUTY VALUATION AUTHORITI ES AS FULL CONSIDERATION AT RS.18,61,250/- AS AGAINST THE ACT UAL CONSIDERATION OF RS.10,50,000/-. THE CIT(APPEALS) ALSO AFFIRMED THE ACTION OF THE ASSESSING OFFICER IN APPLYING THE PROVISIONS OF SEC TION 50C OF THE ACT. 4. BEFORE ME, THE LD. REPRESENTATIVE FOR THE ASSESS EE SUBMITTED THAT IN THE CASE OF THE CO-OWNER SHRI RAJNIKANT N.S OTA, THE FAIR MARKET VALUE OF THE PROPERTY WAS VALUED BY THE DVO, WHIC H WAS LOWER THAN THE VALUE ADOPTED BY THE STAMP DUTY VALUATION AUTHO RITIES. THEREFORE, IT WAS REQUESTED THAT THE MATTER BE SET-ASIDE TO TH E FILE OF THE ASSESSING OFFICER TO CALCULATE THE CAPITAL GAIN IN ACCORDANCE THE PROVISIONS OF SECTION 50C(3) OF THE ACT. 5. THE LD. DEPARTMENTAL REPRESENTATIVE DID NOT DIS PUTE THE FACTUAL MATRIX BROUGHT OUT BY THE LD. REPRESENTATIVE FOR TH E ASSESSEE. 6. IN VIEW OF THE AFORESAID, THE ORDER OF CIT(A PPEALS) IS SET-ASIDE AND THE MATTER IS RESTORED BACK TO THE FILE OF ASSE SSING OFFICER TO RE- WORK THE ADOPTION OF FULL VALUE OF CONSIDERATION IN TERMS OF SECTION 50C 3 ITA NO. 2990/MUM/2014 (ASSESSMENT YEAR : 2007-08 OF THE ACT AS PER THE PROVISIONS OF SUB-SECTION(3) OF SECTION 50C OF THE ACT IN LINE WITH THE VALUE ADOPTED IN THE CASE OF THE CO-OWNER SHRI RAJNIKANT N. SOTA. NEEDLESS TO SAY, THE ASSESSING OFFICER SHALL ALLOW THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD BE FORE PASSING AN ORDER AFRESH ON THIS ASPECT IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED, AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 29/02/2016. SD/- (G.S. PANNU) ACCOUN TANT MEMBER MUMBAI, DATED 29/02/2016 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS