Sri Mohanlal Barecha , Bangalore V. Income Tax Officer Ward-5(2)(2), Bangalore

ITA 370/BANG/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4664 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 07-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSANTHOMAS
• Assessee Lawyers: T N C SRIDHAR
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 370 /BANG/201 8 ASSESSMENT YEAR : 20 14 - 15 SHRI MOHANLAL BAGRECHA, #67, PRANAV APARTMENTS, BASAVANGUDI, BENGALURU 560 004. PAN : A BOPB 0804 A VS. THE INCOME TAX OFFICER, WARD-5(2)(2), BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. T. N. C. SRIDHAR, ADVOCATE REVENUE BY : SMT. SUSAN THOMAS , ADDL. CIT DATE OF HEARING : 31 . 0 5 .201 8 DATE OF PRONOUNCEMENT : 08 . 0 6 .201 8 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), INTER ALIA, ON FOLLOWING GROUNDS: 1. THE ORDERS OF THE AUTHORITIES BELOW IN SO FAR AS THEY ARE AGAINST THE APPELLANT, ARE OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES, FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED CIT[A] IS NOT JUSTIFIED IN SUSTAINING THE ADDITION OF RS.30,65,000/- MADE BY THE A.O. BEING THE DIFFERENCE BETWEEN THE SALE VALUE AND THE GUIDANCE VALUE ON THE DATE OF EXECUTION OF THE SALE DEED WITHOUT APPRECIATE THE SUBMISSIONS MADE ESPECIALLY THERE WAS A HIKE IN THE GUIDANCE VALUE ON THE DATE OF EXECUTION OF THE SALE AS AGAINST THE PREVAILING GUIDANCE VALUE ON THE DATE ITA NO. 370/BANG/2018 PAGE 2 OF 4 OF ENTERING INTO THE AGREEMENT TO SELL AND THE CONTRACTED SALE PRICE UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANT'S CASE WITHOUT PASSING A SPEAKING ORDER. 3. WITHOUT PREJUDICE TO THE ABOVE, SINCE THE ADDITION MADE IS MAINLY ACCOUNT OF INVOKING THE PROVISIONS OF SECTION 50C OF THE ACT, AS MISCONCEIVED THE APPELLANT HAVING OBJECTED TO IT, THE A.O. OUGHT TO HAVE REFERRED IN TERMS OF SECTION 50C[2] OF THE ACT, TO THE VALUATION OFFICER, WHICH HE FAILED TO DO AND CONSEQUENTLY, THE ADDITION MADE IS CONTRARY TO LAW AND REQUIRES TO BE DELETED. 4. WITHOUT PREJUDICE TO THE RIGHT TO SEEK WAIVER WITH THE HON'BLE CCIT/DG, THE APPELLANT DENIES HIMSELF LIABLE TO BE CHARGED TO INTEREST U/S. 234-A AND 234B OF THE ACT, WHICH UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANT'S CASE AND THE LEVY DESERVES TO BE CANCELLED. 5. FOR THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL, YOUR APPELLANT HUMBLY PRAYS THAT THE APPEAL MAY BE ALLOWED AND JUSTICE RENDERED AND THE APPELLANT MAY BE AWARDED COSTS IN PROSECUTING THE APPEAL AND ALSO ORDER FOR THE REFUND OF THE INSTITUTION FEES AS CART OF THE COSTS. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED THAT LOWER AUTHORITIES HAVE CONSIDERED THE CONTENTIONS OF THE ASSESSEE THAT HE HAS ENTERED INTO AN AGREEMENT WITH THE BUYER ON 17.07.2013 BEFORE THE ISSUANCE OF NOTIFICATION REVISING THE RATE OR THE GUIDELINE VALUE. THE GUIDELINE VALUE WAS REVISED ON 07.08.2017 FROM 2500/SQ.FT. TO 3500/SQ.FT. THE ASSESSEE HAS EXECUTED THE AGREEMENT FOR THE SALE OF PLOT AT THE RATE OF 2500/SQ.FT. AS PER THE GUIDELINE VALUE BUT WAS FORCED TO PAY THE STAMP DUTY AT THE GUIDELINE VALUE REVISED ON 07.08.2017 BECAUSE THE SALE DEED WAS EXECUTED ON 30.08.2013. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT THE VALUE OF THE PLOT SHOULD BE TAKEN ON THE BASIS OF THE AGREEMENT FOR THE SALE EXECUTED BETWEEN THE PARTIES. DURING THE COURSE OF HEARING, IT WAS POINTED OUT THAT THE ASSESSEE HAS RAISED THE OBJECTION TO THE VALUATION BEING ADOPTED BY THE AO AFTER INVOKING THE PROVISION OF SECTION 50C OF THE ACT. LEARNED DR PLACED A RELIANCE UPON THE ORDER OF THE CIT(A). 3. HAVING CAREFULLY EXAMINED THE ORDER OF THE LOWER AUTHORITIES AND THE EVIDENCE FILED BEFORE US IN THE LIGHT OF RIVAL SUBMISSIONS, WE FIND THAT ASSESSEE HAS ENTERED INTO AN AGREEMENT ON 13.07.2013 AT THE GUIDELINE VALUE BUT AT THE TIME WHEN THE SALE DEED WAS ITA NO. 370/BANG/2018 PAGE 3 OF 4 EXECUTED, GUIDELINE VALUE WAS REVISED FROM 2500/SQ.FT. TO 3500/SQ.FT. AND THE REVISED GUIDELINE VALUE WAS TAKEN BY THE AO FOR INVOKING THE PROVISIONS OF SECTION 50C OF THE ACT. THOUGH THE ASSESSEE HAS NOT SPECIFICALLY RAISED AN OBJECTION IN WRITING BUT THE EVIDENCE FILED BEFORE US CLEARLY SHOWS THAT HE HAS ENTERED INTO AN AGREEMENT BEFORE THE REVISION OF THE GUIDELINES RATES. THEREFORE, THE AO SHOULD HAVE EXAMINED THE ASPECT OF THE EXECUTION OF THE SALE AGREEMENT ACCORDING TO WHICH PLOT WAS SOLD AT THE RATE OF 2500/SQ.FT. NO DOUBT, THE ASSESSEE IS REQUIRED TO PAY THE STAMP DUTY AS PER THE REVISED GUIDELINES BUT THE SALE CONSIDERATION SHOULD BE TAKEN FOR WHICH IT WAS AGREED UPON BETWEEN THE PARTIES AT THE TIME OF EXECUTION OF THE SALE AGREEMENT. BUT ALL THESE ASPECTS WERE NOT EXAMINED BY THE AO WHILE COMPLETING THE ASSESSMENT. ON CAREFUL PERUSAL OF THE EVIDENCES BEFORE US, WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE, THE MATTER SHOULD BE RESTORED BACK TO THE AO FOR READJUDICATION OF THE CLAIM OF THE ASSESSEE WITH REGARD TO SALE CONSIDERATION IN THE LIGHT OF PROVISION OF SECTION 50C OF THE ACT. IF NEED BE, THE AO WILL MAKE A REFERENCE TO THE DVO FOR THE TERMINATION OF THE VALUE OF THE PROPERTY SOLD AFTER THE REVISION OF THE GUIDELINES VALUE. ACCORDINGLY, THE ORDER OF THE CIT(A) IS SET ASIDE AND MATTER IS RESTORED TO THE AO FOR READJUDICATION OF THE ISSUE IN TERMS INDICATED ABOVE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 08 TH JUNE, 2018. SD/- SD/- BANGALORE. DATED: 08 TH JUNE, 2018. /NS/* (INTURI RAMA RAO) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER ITA NO. 370/BANG/2018 PAGE 4 OF 4 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE.