ITO, New Delhi V. M/s BCI Optical Disc. Pvt. Ltd., Delhi

ITA 3293/DEL/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5212 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 03-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S NAJMI
• Keywords: Sale consideration of property below Jantri Value; Value adopted by valuation officer; Fair market value; Valuation report; Capital Gains

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 3293/DEL/2016 : ASSTT. YEAR : 2011-12 INCOME TAX OFFICER, WARD-4(1), NEW DELHI VS BCI OPTICAL DISC. PVT. LTD., 2-SSI, INDL. AREA, G.T. KARNAL ROAD, DELHI-110033 (APPELLANT) (RESPONDENT) PAN NO. AA A CB0517G ASSESSEE BY : SH. VINOD KUMAR BINDAL, ADV. REVENUE BY : SH. S. NAJMI, CIT DR DATE OF HEAR ING: 02 . 0 9 .20 2 1 DATE OF PRONOUNCEMENT: 20 .0 9 .20 2 1 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER OF LD. CIT (A)-2, NEW DELHI DATED 12.02.2 016. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENU E: 1. WHETHER ON THE BASIS OF THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) WAS RIGH T IN ADOPTING FAIR MARKET VALUE DETERMINED BY THE DVO AS AGAINST THE VALUE AS PER STAMP VALUATION AUTHORITY. ITA NO. 3293/DEL/2016 BCI OPTICAL DISC. PVT. LTD. 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY FILED ITS ORIGINAL E-RETURN OF INCOME ON 27.06.2011 DECLA RING TOTAL INCOME OF NIL. THE ASSESSEE IS ENGAGED IN THE BUSIN ESS OF MANUFACTURING AND SALES OF COMPACT DISCS (CD). 4. DURING THE YEAR, THE ASSESSEE SOLD THE PROPERTY IN QUESTION FOR A SALE CONSIDERATION OF RS.180,00,000 /- AS PER THE SALE DEED WHEREAS THE STAMP DUTY HAS BEEN PAID ON T HE CIRCLE RATE OF RS.487,40,480/-. THE VALUE DETERMINED BY T HE DVO WAS RS.204,48,563/-. THE AO CONSIDERED THE VALUE OF THE CIRCLE RATE ON WHICH STAMP DUTY HAS BEEN PAID AS THE SALE CONSI DERATION AND ACCORDINGLY DETERMINED LONG TERM CAPITAL. 5. ON THE OTHER HAND, THE LD. CIT (A) CONFIRMED THE ADDITION TAKING INTO CONSIDERATION, THE VALUATION REPORT OF DVO AND DIRECTED THE AO TO COMPUTE THE CAPITAL GAIN ACCORDI NGLY. 6. AGGRIEVED WITH THE ORDER OF THE LD. CIT (A), THE REVENUE FILED APPEAL BEFORE US. THE ISSUE TO BE DECIDED IS WHETHER THE DVO REPORT WILL HAVE PRIMACY OVER THE STAMP VALUATI ON AUTHORITY? 7. WE HAVE GONE THROUGH THE PROVISIONS OF THE ACT P ERTAINING TO SECTION 50C(2) AND ALSO SECTION 50C(3) AND THE J UDGMENTS OF CO-ORDINATE BENCH OF ITAT, VSP IN THE CASE OF PATTA BHIRAM VS ITO 45 TAXMAN 141 WHEREIN IT WAS HELD THAT THE FMV DETERMINED BY THE DVO HAS TO BE TREATED AS FULL VAL UE OF CONSIDERATION RECEIVED BY THE ASSESSEE FOR THE PURP OSE OF COMPUTING CAPITAL GAINS. WE ALSO FIND THAT THE REVE NUE (AO) IN THE REMAND REPORT SUBMITTED TO THE CIT (A) HAS ALSO NOT ITA NO. 3293/DEL/2016 BCI OPTICAL DISC. PVT. LTD. 3 BROUGHT OUT ANY SPECIFIC AND APPARENT GROSS ERROR I N THE DVOS REPORT TO MERIT ITS REJECTION. IN VIEW OF THE JUDIC IAL PRONOUNCEMENT AND THE CLEAR PROVISIONS OF THE ACT, WE DECLINE TO INTERFERE WITH THE ORDER OF THE LD. CIT (A) ON T HIS GROUND. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/09/2021. SD/- SD/- (AMIT SHUKLA) (DR. B. R. R. KUMAR) JUDICIAL MEMBER ACC OUNTANT MEMBER DATED: 20/09/2021 *SUBODH KUMAR, SR. PS* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR