ITO, New Delhi V. M/s. Protex Plastic Pvt. Ltd., New Delhi

ITA 316/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7702 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 17-05-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 16-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL
• Assessee Lawyers: ASHISH CHADHA CAS
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI G.D. AGR A WAL , VICE PRESIDENT , AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 316 /DEL /20 1 4 ASSESSMENT YEAR : 2008 - 09 THE I.T .O VS. M/S PROTEX PLASTIC PVT. LTD WARD 14 ( 5 ) W - 18, OKHLA INDUSTRIAL AREA, MEERUT PHASE II, NEW DELHI PAN : AA ACP 1684 N [APPELLANT] [RESPONDENT] DATE OF HEARING : 1 7 . 0 5 . 201 6 DATE OF PRONOUNCEMENT : 25 . 0 5 .2016 APPELLANT BY : SHRI AMRIT LAL , SR. DR RESPONDENT BY : SHRI VED JAIN & SHRI ASHISH CHADHA, CAS , ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - XVII, DELHI DATED 25 / 1 0/20 1 3 FOR A.Y 2008 - 09. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN NOT APPRECIATING THE FACTS THAT ACTUAL TRANSFERRED IMMOVABLE PROPERTY IN QUESTION I.E. W - 18, OKHLA INDL. AREA, PHASE II, NEW DELHI TOOK PLACE VIDE THE CONVEYANCE DEED DATED 21.09.2007 RELEVANT TO THE A.Y 2008 - 09 WHICH IS ONLY REGISTERED DOCUMENT. 2 ITA NO. 316 /DEL/201 4 2 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN OBSERVING THAT THE MATTER IS SAME SINCE THE PROPERTY IN QUESTION IS THE SAME BUT THE FACTS REGARDING APPLICABILITY OF SECTION 50C OF THE ACT AND ALSO THE CIRCLE RATE FOR COMPUTATION OF CAPITAL GAIN IS DIFFERENT IN THE A.Y 2008 - 09 VIS A VIS A.Y 2007 - 08. 3. AT THE TIME OF HEARING, AT THE VERY OUTSET, IT WAS CONVEYED TO US THAT THE ISSUE RAISED IN THIS APPEAL STANDS COVERED IN FAVOUR OF THE ASSESS EE BY THE TRIBUNAL ORDER DATED 2 0 .0 3 .2015 PASSED IN ASSESSEE S OWN CASE FOR ASSESSMENT YEAR 200 7 - 0 8 IN ITA NO . 69 /DEL/201 3 , WHEREIN THE TRIBUNAL UPHELD THE LD. CIT(A) S FINDING IN DELETING THE ADDITION VIDE ORDER DATED 20.3.2015 IN ITA NO. 69 /DEL/2013 WHOSE COP Y IS ENCLOSED. THE LD. COUNSEL FOR THE DEPARTMENT FAIRLY ADMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. BUT HE RELIED ON THE FINDINGS OF THE A.O. GIVEN IN THIS REGARD. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE AL SO GONE THROUGH THE TRIBUNAL ORDER IN ASSESSEE S OWN CASE [SUPRA] AND HAVE ALSO CAREFULLY TREADED THROUGH THE APPELLATE ORDER. 5. WE FIND THAT AGAINST THE ORDER PASSED BY THE AO, THE ASSESSEE WAS IN APPEAL AND THE LD. CIT(A) HAS ALLOWED THE APPEAL OF THE ASSESSEE ON THE FOLLOWING REASONING: 3 ITA NO. 316 /DEL/201 4 3 3. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE. THE CONVEYANCE DEED WAS REGISTERED IN THE FINANCIAL YEAR PERTAINING TO A.Y 2008 - 09 WHEREBY VALUE HAS TAKEN RS. 11,72,000/ - . THE FINANCE [NO. 2] ACT, 2009 HAS INSERTED THE WORD ASSESSABLE MEANING THEREBY THAT EVEN IF THERE IS NO REGISTRATION, THEN ALSO, THE VALUE ASSESSABLE AS PER STAMP VALUATION AUTHORITY CAN BE TAKEN AS FULL VALUE OF CONSIDERATION RECEIVED. THIS AMENDMENT HAS COME INTO EFFECT W.E.F. 1.10.2009 ONLY. T HEREFOR E , IT CANNOT BE RETROSPECTIVELY IMPLEMENTED OR APPLIED. FURTHER , THE AO HAS HIMSELF HAS TAKEN THE YEAR FOR WORKING OUT THE CAPITAL GAIN AS A.Y 2007 - 08 AND FOR THAT PERIOD NO CIRCLE RATES WERE SPECIFIED BY THE TAMP VALUATION AUTHORITY FOR DELHI. TH E CIRCLE RATES IN DELHI HAVE BEEN NOTIFIED ONLY BY CIRCULAR NO. F.2(12)/FIN. [ E.I]/PART FILE/VOL. 1(II)/3548 DATED 18.07.2007. KEEPING ALL THESE FACTS IN VIEW, WE FIND NO FAULT IN THE ORDER OF THE LD. CIT(A) AND WE DISMISS THIS APPEAL OF THE REVENUE. 6. AFTER CONSIDERING THE FINDINGS OF THE LD. CIT(A), WE HAVE CLEARLY NOTICED THAT THE ISSUE RAISED IN THIS APPEAL STANDS FULLY COVERED BY THE ORDER OF THE TRIBUNAL DATED 2 0 .0 3 .2015 THEREFORE, IT IS VIVIDLY CLEAR FROM THE ABOVE THAT THE ISSUE STANDS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE ITAT F BENCH [SUPRA] . HENCE THERE IS NO MERIT IN THIS GROUND TAKEN BY THE REVENUE. ACCORDINGLY, RESPECTFUL LY FOLLOWING THE ABOVE DECISION , 4 ITA NO. 316 /DEL/201 4 4 WE CONFIRM THE IMPUGNED FINDING OF THE LD. CIT(A) IN THIS REGARD A ND DISMISS THE GROUND S RAISED IN THIS APPEAL BY THE REVENUE. 7 . IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 5 .0 5 .2016. SD/ - SD/ - ( G.D. AGARWAL ) (C.M. GARG) VICE PRESIDENT JUDICIAL MEMBER DATED: 2 5 T H MAY , 2016. VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI