Ramadevi Rajgopal, Chennai V. ITO, NCR-21(3), Chennai

ITA 3153/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9036 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 20-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Fair market value
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./I.T.A. NO. 3153/CHNY/2018 ! ' / ASSESSMENT YEAR : 2015-2016. SMT. RAMADEVI RAJGOPAL, B-408, KRISHNA COURT, 99/1, MANAPAKKAM MAIN ROAD, CHENNAI 600 125. [PAN AEJPR 7986P] VS. THE INCOME TAX OFFICER, NON CORPORATE WARD 21(3), CHENNAI 600 034. ( / APPELLANT) ( /RESPONDENT) # $ % / APPELLANT BY : SHRI. PHILIP GEORGE, ADVOCATE &' # $ % /RESPONDENT BY : SHRI. S. MARUTHU PANDIAN, ADDL. CIT. ( ) $ * /DATE OF HEARING : 08-07-2019 +,'! $ * /DATE OF PRONOUNCEMENT : 09-07-2019 / O R D E R PER INTURI RAMA RAO , ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-9 (I/C), CHENNAI (CIT(A) FOR SHORT) DATED 28.09.2018 FOR T HE ASSESSMENT YEAR (AY) 2015-2016. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : ITA NO.3153/2018 :- 2 -: 1. THE ORDER PASSED BY THE LEARNED COMMISSIONER O F INCOME TAX (APPEALS)- III IS CONTRARY TO LAW AND FACTS OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - III HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE ASSESS ING OFFICER, A SUM OF RS.37,00,000/- AS INCOME FROM OTHER SOURCES BEING THE DIFFERENCE BETWEEN ACTUAL CONSIDERATION PAID BY THE APPELLANT FOR ACQUIRING AN IMMOVABLE PROPERTY AND THE VALUE ADOPT ED FOR STAMP DUTY PURPOSES BY THE STATE AUTHORITIES. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - III FAILED TO CONSIDER THE FACT THAT THE PREVAILING MARKET VALUE OF THE PROPERTY AT THE TIME OF PURCHASE OF THE SAID PROPERTY BY THE AP PELLANT IS LESS THAN THE VALUE ADOPTED BY THE ASSESSING OFFICER. 4. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - III ERRED IN DISREGARDING THE PLEA OF THE APPELLANT TO CONSIDER THE STATUS OF PROCEEDINGS INITIATED UNDER SECTION 50-C OF THE ACT IN THE HANDS OF THE SELLER OF THE PROPERTY BEFORE DISPOSING OF THE APPELLANTS APPEAL. 5. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - III FAILED TO APPRECIATE THE SUBMISSIONS OF THE APPELLANT THAT IN TAXING THE DIFFERENCE BETWEEN THE CONSIDERATION PAID AND THE M ARKET VALUE OF THE SUBJECT PROPERTY U/S 56(2)(VII) OF THE ACT AMOU NTS TO DOUBLE TAXATION IN THAT SELLER OF THE PROPERTY IS ALREADY SUBJECT TO TAX U/S 50-C OF THE ACT IN SEPARATE PROCEEDINGS. FOR THE GROUNDS STATED ABOVE AND THOSE THAT MAY BE ADDUCED AT THE TIME OF HEARING, THE HONBLE INCOME TAX APPELLA TE TRIBUNAL MAY BE PLEASED TO ALLOW THE APPEAL OF THE APPELLANT AND GRANT APPROPRIATE RELIEF/RELIEFS. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL. THE RETURN OF INCOM E FOR THE ASSESSMENT YEAR 2015-2016 WAS FILED ON 27.08.2015 D ISCLOSING TOTAL INCOME OF RS.4,83,150/-. AGAINST THE SAID RETURN O F INCOME, THE ASSESSMENT WAS COMPLETED BY INCOME TAX OFFICER, NON CORPORATE WARD 21(3), CHENNAI VIDE ORDER DATED 29.12.2017 PASSED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) D ECLARING TOTAL INCOME ITA NO.3153/2018 :- 3 -: OF RS. 41,93,153/-, WHILE DOING SO, THE ASSESSING OFFICER MADE ADDITION OF H37,00,000/- UNDER THE PROVISIONS OF SE CTION 56(2)(VII) OF THE ACT, AS PURCHASED THE FOLLOWING PLOTS FOR A C ONSIDERATION LESS THAN THE VALUE ADOPTED FOR STAMP DUTY PURPOSE. 1. ALL THAT PIECE AND PARCEL OF LAND BEING VACANT IN NO.68, GERUGAMBAKKAM VILLAGE, SRIPERUMBADUR TALUK, KANCHEE PPURAM DISTRICT, BEARING PLOT NO.283, SRI KAMALADEVI NAGAR , COMPRISED IN SURVEY NO.757/I, PATTA NO.294, MEASURING OF THE EXT ENT OF 800 SQFT VIDE DOCUMENT NO: 3707/2014 ON 26.05.2014 FOR A SAL E CONSIDERATION OF RS.4,00,000, WHEN THE MARKET VALUE OF THE SAID P ROPERTY WAS PS. 12,00,000 AT THE TIME OF SALE. 2. ALL THAT PIECE AND PARCEL OF LAND BEING VACANT I N NO.68, GERUGAMBAKKAM VILLAGE, SRIPERUMHADUR TALUK, KANCHEE PPURAM DISTRICT, BEARING PLOT NO.284, SRI KAMALADEVI NAGAR , COMPRISED IN SURVEY NO.757/I, PATTA NO.294, MEASURING OF THE EXT ENT OF 800 SQFT VIDE DOCUMENT NO: 3709/2014 ON 26.05.2014 FOR A SAL E CONSIDERATION OF RS.4,00,000, WHEN THE MARKET VALUE OF THE SAID P ROPERTY WAS RS.12,00.000 AT THE TIME OF SALE. 3. ALL THAT PIECE AND PARCEL OF LAND BEING VACANT I N NO.O8, GERUGAMBAKKAM VILLAGE, SRIPERUMBADUR TALUK, KANCHEE PPURAM DISTRICT, BEARING PLOT NO.283, SRI KAMALADEVI NAGAR , COMPRISED IN SURVEY NO.757/1, PATTA NO.294, MEASURING OF THE EXT ENT OF 2100 SQFT VIDE DOCUMENT NO: 3708/2014 ON 26.05.2014 FOR A SAL E CONSIDERATION OF RS. 10,50,000, WHEN THE MARKET VALUE OF THE SAID PROPERTY WAS RS.31,50,000 AT THE TIME OF SALE. 4. BEING AGGRIEVED BY THE ABOVE ORDER, AN APPEAL WAS PREFERRED BEFORE THE LD. CIT(A), CONTENDING THAT FA IR MARKET VALUE IS LESS THAN THE VALUE ADOPTED FOR STAMP DUTY PURPOSE AND THE ASSESSING OFFICER OUT NOT HAVE RESORTED TO MAKING THE ADDIT ION U/S.56(2) (VII) OF THE ACT WITHOUT REFERRING THE MATTER TO THE DEPART MENT VALUATION OFFICER. HOWEVER, THE LD. CIT(A) DISMISSED THE APP EAL. ITA NO.3153/2018 :- 4 -: 5. WE HEARD THE RIVAL SUBMISSION AND PERUSED THE MATER IAL ON RECORD. FROM THE PERUSAL OF THE ASSESSMENT ORDER, IT IS CLEAR THAT ASSESSEE HAD OBJECTED THE VALUATION ADOPTED BY THE ASSESSING OFFICER. THEREFORE THE ONLY COURSE OF ACTION OPEN TO THE ASS ESSING OFFICER IS TO REFER THE MATTER TO THE DEPARTMENT VALUATION OFFI CER FOR THE PURPOSE OF DETERMINING THE FAIR MARKET VALUE. THEREFORE WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR DENOV O ASSESSMENT BY ADOPTING THE VALUE DETERMINED BY THE DEPARTMENT VAL UATION OFFICER. IN THE CIRCUMSTANCES, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PART LY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 9TH DAY OF JULY, 2019, AT CHE NNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER -) / CHENNAI . / DATED: 9TH JULY, 2019. KV /0 $0& *12032'* / COPY TO: 0 1 . # / APPELLANT 3. 0 ( 4*056 / CIT(A) 5. 278 0& * 9 / DR 2. &' # / RESPONDENT 4. 0 ( 4* / CIT 6. 8:0;) / GF