ITO, Muzaffarnagar V. Nidhi Bansal, Muzaffarnagar

ITA 3278/DEL/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6308 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 08-03-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 17-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: DIVAKAR BHARGAVA
• Keywords: Sale consideration of property below Jantri Value; Valuation report; Tax effect
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER I.T.A .NO.-3278/DE L/2011 (ASSESSMENT YEAR-2005- 06) ITO, WARD-1(2), MUZAFFARNAGAR (APPELLANT) VS NIDHI BANSAL, D/O-SH. ANAND PRAKASH BANSAL, R/O-355-PATEL NAGAR, MUZAFFARNAGAR. PAN-ACOPB9687J (RESPONDENT) APPELLANT BY SH.P.DAM.KANUNJNA, SR. DR RESPONDENT BY SH. DIVAKAR BHARGAVA, ADV. ORDER PER DIVA SINGH, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 31.03.2011 OF CIT(A) , MUZAFFARNAGAR PERTAINING TO 2005 06 ASSESSMENT YEAR ON THE FOLLOWING GROUND S: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A)HAS ERRED IN DELETING THE DISALLOWANCE OF RS.78,851/- M ADE BY THE ASSESSING OFFICER UNDER SECTION 36(1)(III) ON ACCOU NT OF PAYMENT OF INTEREST ON LOAN AS THE ASSESSEE IS NOT ENGAGED IN ANY BUSINESS ACTIVITY. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN LAW IN DELETING THE DISALLOWANCE OF RS.11, 168/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CAR RUNNING EXP ENSES & REPAIRS AS THE ASSESSEE IS NOT ENGAGED IN ANY BUSINESS ACTI VITY. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN LAW BY IGNORING THE PROVISIONS OF SECTION 50C OF THE I.T.ACT, 1961 AND ACCEPTING THE VALUATION REPORT AS SUBMITTE D BY THE ASSESSEE AND CONSEQUENTLY ALLOWED THE RELIEF OF RS. 13,16,718/- ON ACCOUNT OF LONG TERM CAPITAL GAIN. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN LAW IN DELETING THE LONG TERM CAPITAL GAIN OF RS.4,33,310/- DATE OF HEARING 08.03.2016 DATE OF PRONOUNCEMENT 22.03.2016 I.T.A .NO.-3278/DEL/2011 PAGE 2 OF 2 BY CONSIDERING THE LAND AS AGRICULTURAL LAND, MISIN TERPRETING THE WORDS MENTIONED IN KHATUANI OF THE LAND UNDER CONSI DERATION. 5. THAT ORDER OF THE CIT(A) BE SET ASIDE AND THAT OF A .O. BE RESTORED. 2. CONSIDERING THE AMOUNT AT STAKE FOR THE REVENUE, BOTH THE PARTIES WERE REQUIRED TO ADDRESS CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 OF CBDT. CONSIDERING THE SAME IN THE FACTS ON RECORD, THE LD . SR. DR FAIRLY CONCEDED THAT THE DEPARTMENTAL APPEAL HAS BEEN FILED WHEREIN THE TAX EFFECT INVOLVED IS MUCH LESS THAN RS.10 LAKH. 3. WE HAVE HEARD THE SUBMISSIONS OF THE PARTIES ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE CBDT VIDE THE AFORESAID CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LAKH FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLAT E TRIBUNAL. PARA 3 OF THE AFORESAID CIRCULAR HAS BEEN MADE APPLICABLE VIDE PA RA 10 RETROSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRECEDENT THAT THE BO ARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX ACT, 1961 ARE BINDING ON THE AUTHORITIES, WE DISMIS S THE DEPARTMENTAL APPEAL CONSIDERING THE MATERIAL AVAILABLE ON RECORD. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22 ND MARCH, 2016. SD/- SD/- (O.P.KANT) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22/03/2016 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI