ITO, Ghaziabad V. Smt Sadhna Garg, Ghaziabad

ITA 35/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58801 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 27-02-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 05-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MOHANTY
• Keywords: Cost of acquisition
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G NEW DELHI BEFORE SHRI I.P.BANSAL, JUDICIAL MEMBER AND SHRI TARVINDER SINGH KAPOOR, ACCOUNTANT MEMBER ITA NO: 35/DEL/2011 A.Y. : 2007-08 ITO, WARD 2(3) VS. SMT.SADHANA GARG GHAZIABAD II E-56, NEHRU NAGAR GHAZIABAD PAN/GIR NO: AJTPG 7189 C (APPELLANT) (RESPONDENT) APPELLANT BY : SH. S.MOHANTY, D.R. RESPONDENT BY : SH.AKHILESH KUMAR, ADV. O R D E R PER TARVINDER SINGH KAPOOR, ACCOUNTANT MEMBER THE CASE RELATES TO AN APPEAL FILED BY THE DEPARTM ENT AGAINST THE ORDER DATED 28 TH OCTOBER, 2010 OF CIT(A), GHAZIABAD FOR A.Y. 2007-0 8. 2. GROUNDS OF APPEAL READ AS UNDER. 1. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S BY DELETING THE ADDITION OF RS.21,00,000/- ON ACCOUNT OF LONG TERM CAPITAL GAIN WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AS WELL AS THE REASONS BY THE A.O. IN HIS ORDER. 2. THAT THE ORDER OF THE LD.CIT(A) DESERVES TO BE S ET ASIDE AND THE ORDER OF A.O. TO BE RESTORED. 2. THE A.O. MADE AN ADDITION ON THE BASIS OF INFOR MATION FROM SUB REGISTRAR OF GHAZIABAD REGARDING SALE OF A PLOT NO. 39 ADMEASURING 250 SQ.METRES BY THE ASSESSEE ON 15 TH APRIL,2006 FOR A SUM OF RS.6,80,000/-. BUT SINCE THE SUB REGISTRAR VALUED THE PROPERTY FOR THE PURPOSE OF STAMP ITA 35/DEL/2011 PAGE 2 OF 3 A.Y. 2007-08 MS. SADHANA GARG, GHAZIABAD DUTY FOR RS.21,00,000/-, THE SAME WAS TAKEN FOR THE PURPOSE OF COMPUTATION OF LONG TERM CAPITAL GAIN. A.O. TOOK T HE COST OF ACQUISITION AS NIL IN THE ABSENCE OF DATE OF ITS PURCHASE AND C OST OF ACQUISITION. 3. DURING ASSESSMENT PROCEEDINGS THE ASSESSEE SHOWE D HER IGNORANCE ABOUT HAVING SOLD ANY PLOT IN NOIDA OR GHAZIABAD AN D IN FACT FILED AN AFFIDAVIT ALSO IN SUPPORT OF HER CLAIM BUT THE A.O. MADE THE ADDITION OF RS.21,00,000/-. 4. CIT(A) IN HIS APPEAL ORDER HAS CONCLUDED THAT TH ERE SEEMS TO BE SOME MISTAKE IN INFORMATION ON WHICH A.O. HAD ACTED . THEREFORE A.O. CAN CONDUCT FURTHER INQUIRY/VERIFICATION AND IF INF ORMATION GETS CONCRETE, HE CAN ALWAYS TAKE REMEDIAL ACTION U/S 147 OF THE I NCOME TAX ACT, 1961. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS IN THE LIGHT OF MATERIAL PLACED BEFORE US. SINCE EVEN BEFORE THE A .O. THE ASSESSEE HAD DENIED SALE OF ANY PLOT OR PROPERTY, THE A.O. COULD NOT MAKE ADDITION SIMPLY ON THE BASIS OF INFORMATION RECEIVED BY HIM FROM SUB-REGISTRAR, GHAZIABAD WITHOUT BRINGING ANY MATERIAL ON RECORD T O SHOW THAT THE ASSESSEE IN FACT HAD SOLD ANY SUCH PROPERTY. THE A SSESSEE HAD ALSO FILED AN AFFIDAVIT BEFORE THE A.O. STATING ALL THESE FAC TS AND IN ABSENCE OF HAVING BROUGHT ANY MATERIAL ON RECORD TO ESTABLISH THAT ANY SUCH PROPERTY IN FACT WAS SOLD BY THE ASSESSEE, ADDITION COULD NOT BE MADE. MOREOVER, LD.CIT(A) HAS ALSO OBSERVED THAT THERE I S SOME MISTAKE IN THE INFORMATION ON WHICH THE A.O. IS WORKING ON. THE A .O. IS ALSO EMPOWERED TO CONDUCT FURTHER ENQUIRIES/VERIFICATION AND IF INFORMATION ITA 35/DEL/2011 PAGE 3 OF 3 A.Y. 2007-08 MS. SADHANA GARG, GHAZIABAD GETS CONCRETE THE A.O. IS EMPOWERED TO TAKE REMEDIA L ACTION U/S 147 OF THE ACT. HE HAS ALSO ADVISED THE A.O. TO DO SO. I N OUR CONSIDERED OPINION THESE FINDINGS OF LD.CIT(A) ARE IN ACCORDAN CE WITH LAW AND WE DECLINE TO INTERFERE IN THE SAME. THEREFORE, THE A PPEAL FILED BY THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. PRONOUNCED IN THE OPEN COURT ON 29TH FEBRUARY, 2 012. SD/- SD/- (I.P.BANSAL) (TARV INDER SINGH KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29 TH FEB., 2012 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CI T(A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR // C O P Y //