Tedlapu Venkata Ramana, Kakinada V. Income Tax Officer, Ward-3, Kakinada

ITA 362/VIZ/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6618 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 05-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D V SUBBA RAO
• Assessee Lawyers: P SUBRAHMANYAM
• Keywords: Sale consideration of property below Jantri Value; Set aside
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 362 / VIZ /201 8 (ASST. YEAR : 20 0 8 - 0 9 ) TEDLAPU VENKATA RAMANA, S/O SATYANARAYANA, D.NO. 2 - 53, SARPAVARAM, KAKINADA. V S . IT O , WARD - 3 , KAKINADA . PAN NO. AXGPT 2933 C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. SUBRAHMANYAM C A. DEPARTMENT BY : SHRI D.V. SUBBA RAO SR. DR DATE OF HEARING : 25 / 0 7 /201 9 . DATE OF PRONOUNCEMENT : 02 / 0 8 /201 9 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 12 , HYDERABAD , DATED 03 /0 4 /201 8 FOR THE ASSESSMENT YEAR 200 8 - 0 9 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL , SOLD HIS IMMOVABLE PRO PERTY VIDE DOCUMENT NO.1203/2007 DURING THE F. Y . 2007 - 08 RELEVANT TO THE A.Y. 2008 - 09 WITH THE SRO, DWARAKANAGAR, VISAKHAPATNAM FOR A CONSIDERATION OF RS. 3.00 LAKHS . THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME . SUBSEQU E NTLY, IT CAME TO THE NOTICE OF THE 2 ITA NO. 362/VIZ/2018 ( TEDLAPU VENKATA RAMANA ) ASSESSING OFFICER THAT THE ENTIRE SALE VALUE OF THE PROPERTY IS RS. 9,94,000/ - AND THE ASSESSEE HAS NOT OFFER ED THE SAME FOR CAPITAL GAINS . THEREFORE, THE ASSESSING OFFICER ISSUED A SHOW CAUSE NOTICE , DATED 19/02/2015 WHEREIN IT HAS BEEN MENTIONED THAT VIDE DOCUMENT NO. 1203/2007 AT SRO, SARPAVARAM , ASSESSEE SOLD THE PROPERTY AND ASKED HIM TO FILE BANK ACCOUNT AND OTHER DETAILS. THE ASSESSEE HAS NOT APPEARED B E FORE THE ASSESSING OFFICER , THEREFORE, T HE ASSESSING OFFICER COMPLETED THE ASSESSMENT BY TAXING THE CAPITAL GAINS . 3 . ON APPEAL BEFORE THE LD. CIT(A), IT WAS CLEARLY SUBMITTED THAT THE PROPERTY DOES NOT FETCH MORE THAN RS. 3.0 0 LAKHS FOR THE REASON THAT THE PROP E RTY DOES NOT HAVE APPROACH ROAD . THE LD.CIT(A) WITHOUT EXAMINING THE SAME SIMPLY CONFIRMED THE O RDER OF THE ASSESSING OFFICER. 4 . ON APPEAL BEFORE US, THE ASSESSEE REITERATED THE SUBMISSIONS MADE B E FORE THE AUTHORITIES BELOW AND SUBMITTED THAT THE ISSUE MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO ASCERTAIN THE CORRECT VALUE OF THE PROPERTY. 5. LD.DR STRONGLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 6 . THE ASSESSEE HAS SOLD THE IMMOVABLE PROPERTY VIDE DOCUMENT N O . 1203/2007 FOR A SALE CONSIDERATION OF RS. 3.00 LAKHS . BEING AN ILLITERATE, ASSESSEE HAS NOT FILED THE RETURN OF 3 ITA NO. 362/VIZ/2018 ( TEDLAPU VENKATA RAMANA ) INCOME BEFORE ISSUANCE OF NOTICE BY THE ASSESSING OFFICER AND EVEN SUBSEQUENT ASSESSMENT YEAR S ALSO . HE DO ES NOT HAVE ANY TAXABLE INCOME FOR ANY OF THE YEAR OTHER THAN THE SALE OF THIS PROPERTY . FROM THE SALE DEED, IT IS VERY CLEAR THAT THE PROPERTY IS SOLD FOR RS. 3.00 LAKHS , HOWEVER, THE ASSESSING OFFICER IS OF THE OPINI O N THAT THE MARKET VALUE OF THE PROPERTY IS RS. 9,94,000/ - , THEREFORE, THE REMAINING BALANCE AMOUNT IS ADDED U/SEC. 50C AND CALCULATED THE CAPITAL GAINS. ON APPEAL, LD. CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. FROM THE SALE DOCUMENT , IT IS VERY CLEAR THAT THE VALUE OF THE PROPERTY IS NEAR ABOUT RS. 3.00 LAKHS AND ACCORDING TO THE ASSESSING OFFICER, THE MARKET VALUE OF THE PROPERTY IS RS. 9,94,000/ - . IT IS NOT CLEAR WHAT IS THE BASIS FOR THE ASSESSING OFFICER TO COME TO A CONCLUSION THAT VALUE OF THE PROPERTY IS OF RS. 9,94 ,000/ - . IT IS ALSO NOT CLEAR , IF THE PROPERTY VALUE IS RS. 9,94,000/ - , WHY SRO REGISTERED THE PROPERTY FOR RS.3.00 LAKHS . THAT APART, THE ASSESSEE HAS RAISED ONE MORE OBJECTION BEFORE THE LD. CIT(A) THAT THERE IS NO APPROACH ROAD TO THIS PROPE R TY, THEREF ORE THE VALUE OF THE PROPERTY CANNOT FETCH MORE THAN RS. 3.00 LAKHS. THIS FACT IS NOT EXAMINED BY THE LD.CIT(A) AND SIMPLY CONFIRMED THE ORDER OF THE ASSESSING OFFICER. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE , WE ARE OF THE OPINION THAT THE ORDER PASSED BY THE LD. CIT(A) DESERVES TO BE SET 4 ITA NO. 362/VIZ/2018 ( TEDLAPU VENKATA RAMANA ) ASIDE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO ADJUDICATE THE ISSUE IN DENOVO IN ACCORDANCE WITH LAW AFTER GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE . THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 2 N D DAY OF AUGUST , 201 9 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 0 2 N D AUGUST , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE TEDLAPU VENKATA RAMANA, S/O SATYANARAYANA, D.NO. 2 - 53, SARPAVARAM, KAKINADA. 2. THE REVENUE - ITO, WARD - 3, KAKINADA. 3. THE PR. CIT - 2, VISAKHAPATNAM. 4. THE CIT(A) - 12, HYDERABAD. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.