Sri Veluri Madhukar, , Rajahmundry V. Assistant Commissioner Of Income Tax, Circle-1(1), Rajahmundry

ITA 321/VIZ/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1785 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 18-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Sale consideration of property below Jantri Value; Opportunity of being heard
• Section: 50C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 3 21 /VIZ/20 1 8 ( / ASSESSMENT YEAR: 20 0 8 - 0 9 ) SRI VELURI MADHUKAR S/O SMT.SURYA PRAKASAM D.NO.80 - 32 - 7, SARADA NAGAR A.V.APPARAO ROAD RAJAHMUNDRY [PAN : A BQPV8089D ] VS. ASST.COMMISSIONER OF INCOME TAX CIRCLE - 1(1) RAJAHMUNDRY ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI G.V.N.HARI , AR / REVENUE BY : S MT SUMAN MALIK, DR / DATE OF HEARING : 20 . 0 3 .201 9 / DATE OF PRONOUNCEMENT : 22 .0 3 .2019 / O R D E R PER D.S. SUNDER SINGH, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 12, HYDERABAD VIDE APPEAL NO. 10290/2017 - 18 DATED 21.03.2018 FOR THE ASSESSMENT YEAR (A.Y.) 2008 - 09. 2 I.T.A. NO .3 21 /VIZ/2018 SRI VELURI MADHUKAR, RAJAHMUNDRY 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE VALUATION OF PROPERTY FOR THE PURPOSE OF SECTION 50C OF THE INCOME TAX ACT, 1961 (ACT IN SHORT). 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.6,95,250/ - AND THE ASSESSMENT WAS COMPLETED ON TOTAL INCOME OF RS.11,03,450/ - AND THE ASSESSING OFFICER(AO) RAI SED THE DEMAND OF RS.2,03,990/ - .DURING THE ASSESSMENT PROCEEDINGS, THE AO FOUND THAT THERE WAS A DIFFERENCE IN VALUATION OF PROPERTY ADOPTED BY SRO AND THE SALE CONSIDERATION ADMITTED BY THE ASSESSEE. AGAINST THE MARKET VALUE OF RS.43,80,750/ - , THE SALE CO NSIDERATION ADMITTED WAS RS.25,00,000/ - . THEREFORE, THE AO REFERRED THE VALUATION TO THE VALUATION CELL, WHEREIN THE DVO HAD VALUED THE PROPERTY AT RS.37,23,600/ - . THE AO CALLED FOR OBJECTIONS OF THE ASSESSEE AND AFTER CONSIDERING THE OBJECTIONS FILED B Y THE ASSESSEE IN RESPECT OF THE VALUATION OF THE PROPERTY, THE AO REJECTED THE OBJECTIONS AND ADOPTED THE VALUE AS DETERMINED BY THE DVO AT RS.37,23,600/ - AND TAXED 1/3 RD SHARE OF RS.37,23,600/ - AT RS.12,41,200/ - FOR THE PURPOSE OF CAPITAL GAINS. 5. AGA INST THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) ISSUED NOTICE TO THE ASSESSEE ON 4 OCCASIONS ON 3 I.T.A. NO .3 21 /VIZ/2018 SRI VELURI MADHUKAR, RAJAHMUNDRY 20.11.2017, 01.02.2018, 23.02.2018 AND 15.03.2018. HOWEVER, NONE REPRESENTED ON BEHALF OF THE ASSESSEE. THEREFORE, TH E LD.CIT(A) DISMISSED THE APPEAL FOR NON - PROSECUTION. 6. AGAINST THE ORDER OF THE LD.CIT(A), THE ASSESSEE FILED APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING, THE LD.AR ARGUED THAT THE LD.CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT GOING INTO THE MERITS INSPITE OF RAISING VARIOUS GROUNDS, THEREFORE REQUESTED TO REMIT THE MATTER BACK TO THE FILE OF THE LD.CIT(A) FOR ADJUDICATION OF APPEAL ON MERITS. 7. ON THE OTHER HAND, THE LD.DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. WE OBSERVED FROM THE LD. CIT(A) ORDER THAT THE LD.CIT(A) HAS GIVEN SUFFICIENT OPPORTUNITY TO THE ASSESSEE BEFORE DISPOSAL OF APPEAL AND THE ASSESSEE DID NOT RESPOND TO THE NOTICES GI VEN BY THE LD.CIT(A). WE CANNOT APPRECIATE THE ATTITUDE OF THE ASSESSEE FOR NOT RESPONDING TO THE NOTICES ISSUED BY THE LD.CIT(A). HOWEVER, THOUGH THE LD.CIT(A) PERMITTED TO PASS THE ORDER EX - PARTE, SHE HAS TO EXAMINE THE CASE ON MERITS AND DECIDE THE 4 I.T.A. NO .3 21 /VIZ/2018 SRI VELURI MADHUKAR, RAJAHMUNDRY AP PEAL GROUND - WISE ON MERITS. THIS VIEW IS SUPPORTED BY THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME TAX (CENTRAL), NAGPUR VS. PREMKUMAR ARJUNDAS LUTHRA (HUF), 69 TAXMANN.COM 407. THEREFORE, WE ARE OF THE CONSIDERED OPINIO N THAT THE ISSUE NEEDS TO BE REMITTED BACK TO THE FILE OF THE LD.CIT(A).ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE CIT(A) AND DIRECT THE LD.CIT(A) TO DECIDED THE APPEAL ON MERITS AFTER GIVING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND MARCH, 2019. S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 22 .03.2019 L.RAMA, SPS 5 I.T.A. NO .3 21 /VIZ/2018 SRI VELURI MADHUKAR, RAJAHMUNDRY / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE - SRI VELURI MADHUKAR, S/O SMT.SURYA PRAKASAM D.NO.80 - 32 - 7, SARADA NAGAR, A.V.APPARAO ROAD, RAJAHMUNDRY 2. / THE REVENUE ASST.COMMISSIONER OF INCOME TAX, CIRCLE - 1(1) RAJAHMUNDRY 3. THE PR. COMMISSIONER OF INCOME TAX , RAJAHMUNDRY 4. COMMISSIONER OF INCOME - TAX (APPEALS) - 12 , HYDERABAD 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM