Shri Uday Agnihotri , Dharwad V. Income Tax Officer Ward-2(1), Hubli

ITA 3212/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7874 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 30-11-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KARUPPUSWAMY S.R
• Assessee Lawyers: ASHOK KULKARNI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B SMC BEFORE SHRI N.V VASUDEVAN, VICE PRE SIDENT ITA NO.3212/BANG/2018 ASSESSMENT YEAR : 2015 - 16 SHRI UDAY AGNIHOTRI, DATTA NILAYA, VIVEKANAND NAGAR, DHARWAD. PAN A FRPA 6003R . VS. THE INCOME-TAX OFFICER, WARD-2(1), HUBLI. APPELLANT RESPONDENT APPELLANT BY : SHRI ASHOK KULKARNI, ADVOCATE RESPONDENT BY : SHRI KARUPP U SWAMY S.R, ADDL. CIT DATE OF HEARING : 17.12.2018 DATE OF PRONOUNCEMENT : 02 . 0 1.201 9 O R D E R PER SHRI N.V VASUDEVAN, VICE PRESIDENT : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER DATED 28/9/2018 OF CIT(A), HUBALLI RELATING TO ASST. YE AR 2015-16. 2. IN THIS APPEAL THE, ASSESSEE HAS CHALLENGED THE ORDER OF THE AO WHEREBY A SUM OF RS.14,95,166/- WAS ADDED TO THE TO TAL INCOME OF THE ASSESSEE ON ACCOUNT OF UN DECLARED LONG TERM CAPITA L GAIN (LTCG) ON SALE OF PROPERTY. THE FACTS ARE THAT AT THE TIME O F SURVEY IN THE CASE OF THE ASSESSEE CARRIED OUT U/S.133A OF THE INCOME TAX ACT , 1961 (ACT), AN ITA NO.3212/B/18 2 AGREEMENT FOR SALE EVIDENCING SALE OF SHOP NO.7 AND 8 FOR RS.35 LAKHS DATED 25/6/2014 WAS FOUND AND IMPOUNDED BY THE REVE NUE AUTHORITIES. THE ASSESSEE HAS SUBSEQUENTLY SOLD THE SHOPS UNDER A REGISTERED SALE DEED FOR THE CONSIDERATION SHOWN IN SUCH SALE DEED WAS ONLY FOR A SUM OF 7 LAKHS. WHEN CONFRONTED THE ASSESSEE TOOK A PLEA THAT THE EARLIER AGREEMENT WAS CANCELLED AND THE REVISED SALE CONSID ERATION OF RS.7 LAKHS ALONE WAS PAID. THIS WAS NOT BELIEVED BY THE REVEN UE AUTHORITIES AND THE LTCG ON SALE OF THE SHOPS WAS WORKED OUT BY THE AO AS FOLLOWS:- 3. ON APPEAL BY THE ASSESSEE, THE CIT(A) CONFIRMED THE ACTION OF THE AO. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE REI TERATED THE SUBMISSIONS MADE BEFORE THE REVENUE AUTHORITIES. 4. WE ARE OF THE VIEW THAT IN THE LIGHT OF THE EVID ENCE IN THE FORM OF SALE AGREEMENT FOUND IN THE COURSE OF SURVEY SHOWIN G THAT THE CONSIDERATION AGREED BETWEEN THE PARTIES WAS SUM OF RS.35 LAKHS AND THE ITA NO.3212/B/18 3 FACT THAT THE SAME PROPERTY WAS SOLD UNDER A REGIST ERED SALE ONLY FOR RS.7 LAKHS, CAST A DUTY ON THE PART OF THE ASSESSEE TO E XPLAIN THE DISCREPANCY IN THE PRICE OF THE PROPERTY THAT WAS SOLD. THERE IS NO PLAUSIBLE EXPLANATION FOR REDUCTION OF THE PRICE BY 80% BETWE EN THE PRICE AS AGREED IN THE AGREEMENT OF SALE AND THE VALUE AS PER THE R EGISTERED SALE DEED. IN THESE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE AD DITION MADE AND CONFIRMED BY THE REVENUE AUTHORITIES ARE PROPER AND CALL FOR NO INFERENCE. ACCORDINGLY APPEAL BY THE ASSESSEE IS DISMISSED. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND JANUARY, 2019 . SD/- ( N.V VASUDEVAN) VICE PRESIDENT BANGALORE DATED : 2/1/2019 VMS COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGI STRAR, ITAT, BANGALORE