TVISTEX (INDIA) P.LTD, MUMBAI V. ITO 7(3)3, MUMBAI

ITA 3353/MUM/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9174 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-12-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 14-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: C K SHANBHAG
• Keywords: Sale consideration of property below Jantri Value; Valuation report
• Section: 50C

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R. K. GUPTA , JM ITA NO. 3353 / MUM/ 20 1 2 ( ASSESSME NT YEAR : 200 7 - 20 0 8 ) TVISTEX (INDIA) PVT. LTD., 10 BHARAT TIRTH, CHS SION TROMBASY RD., CHEMBUR, MUMBAI - 400 071 VS. ITO 7(3)3 , MUMBAI PAN/GIR NO. : A AACT 1944 M ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : MR. C.K.SHANBHAG /REVENUE BY : MR. MOHIT JAIN DATE OF HEARING : 5 TH DEC . , 2012 DATE OF PRONOUNCEMENT : 7 TH DEC. ,2012 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 5 - 12 - 2011 OF LEANED CIT(A) - 13 , MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 7 - 0 8 . 2 . THE ONLY ISSUE IN THE APPEAL OF THE ASSESSEE IS AGAINST MAKING ADDITION OF RS. 94,000/ - IN VIEW OF SECTION 50C. 3 . T HE ASSESSEE HAS OBJECTED THE ADDITION IN VIEW OF THE PROVISION OF SECTION 50C(2) & (3) . THE ASSESSEE IS A PRIVATE LIMITED COMPANY , ITA NO. 3353 /20 1 2 2 HAD FILED ITS RETURN DECLARING INCOME OF RS. 3,93, 680/ - . DURING THE YEAR THE ASSESSEE SOLD IMMOVABLE PROPERTY OF RS. 12,70,000/ - AND OFFERED CAPITAL GAIN OF RS. 8,54,304/ - FOR TAXATION. THE CAPITAL GAIN WAS OFFERED ON THE BASIS OF AGREEMENT OF SALE. BEFORE MAKING SALE, THE ASSESSEE HAS OBTAINED A VALUATION REPORT FROM GOVERNMENT APPROVED VALUER, WHO VALUED THE PROPERTY AT RS. 12,60, 000/ - , WHEREAS THE PROPERTY WAS OLD AT RS. 12,70,000/ - . THE SUB REGISTRAR VALUED THE SAME AT RS. 13,64,000/ - FOR THE PURPOSE OF STAMP DUTY. 4 . THE ASSESSING OFFICER ATTRACTED THE PROVISION OF SECTION 50C AND ADDED THE DIFFERENCE BETWEEN RS.13,64,000/ - AND RS.12,70,000/ - , WHICH RESULTED AN ADDITION OF RS.94,000/ - . THE CONTENTION OF THE ASSESSEE THAT IT HAS OBTAINED VALUATION REPORT AND AS PER VALUER REPORT, THE VALUATION OF THE PROPERTY WAS NOT MORE THAN RS.12,60,000/ - , THEREFORE, NO ADDITION IS WARRANTED, W AS NOT ACCEPTED BY THE ASSESSING OFFICER. 5 . THE LEARNED CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 6 . AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, I FOUND THAT THE ASSESSEE DESERVES TO SUCCEED ON THE ISSUE INVOLVED . T HE ASSESSEE HAS OBTAINED VALUATION REPORT FROM THE GOVERNMENT APPROVED VALUER. IF THE ASSESSING OFFICER WAS NOT SATISFIED WITH THE VALUATION REPORT , THEN HE COULD HAVE OBTAINED ANOTHER VALUATION FROM THE DEPARTMENT VALUER AS PRESCRIBED UNDER SECTION 50C(2) . THE REASONING S GIVEN BY THE ASSESSING OFFICER AND CONFIRMED ITA NO. 3353 /20 1 2 3 BY THE LEARNED CIT(A) THAT THE ASSESSEE HAS NOT GIVEN ANY COMPARABLE CASES OF THE AREA , I N MY CONSIDERED VIEW, WERE NOT CORRECT , BECAUSE IF THE AUTHORITIES BELOW ARE OF THE VIEW THAT VALUATION D ECLARED BY THE ASSESSEE ON THE BASIS OF APPROVED VALUER, WAS NOT CORRECT, THEN THE AUTHORITIES SHOULD HAVE OBTAINED REPORT FROM THE DEPARTMENTAL VALUER AND AFTER GIVING A COPY TO THE ASSESSEE FOR ITS OBJECTION THEN A VIEW SHOULD HAVE BEEN ACCEPTED. THE DIF FERENCE IS ONLY 8% AS PER THE ASSESSEES VALUATION AND THE VALUATION OF THE REGISTRAR , THEREFORE, FOR THIS REASON ALSO, I AM OF THE VIEW THAT SINCE THERE IS NO MUCH DIFFERENCE OF THE VALUATION SHOWN BY THE ASSESSEE AND ADOPTED BY THE REGISTRAR (VALUATION) , NO ADVERSE INFERENCE SHOULD HAVE BEEN DRAWN AGAINST THE ASSESSEE. ACCORDINGLY, I DELETE THE ADDITION OF RS. 94,000/ - MADE BY THE ASSESSING OFFICER UNDER SECTION 50C. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH DAY OF DEC . 2012. 2012 SD/ - ( ) ( R.K.GUPTA ) / JU DICIAL MEMBER MUMBAI ; DATED : 07 / 1 2 / 2012 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) - X, MUMBAI . ITA NO. 3353 /20 1 2 4 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI