ACIT, New Delhi V. Smt. Anita Babbar, New Delhi

ITA 3731/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3500 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-07-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 04-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Assessee Lawyers: NITIN GUPTA
• Keywords: Deemed Gift on Purchase of immovable Property below Jantri value; Gift; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI SHAMIM YAHYA ITA NO. 3731/DEL/2010 ASSTT. YR: 2006-07 ACIT CIR. 33(1), VS. SMT. ANITA BABBAR, NEW DELHI. 6/83, PADAM SINGH ROAD, KAROL BAGH, NEW DELHI. PAN/GIR NO. AAGPB5774Q (APPELLANT ) ( RESPONDENT ) APPELLANT BY : SMT. PRATIMA KAUSHIK SR. DR RESPONDENT BY : SHRI NITIN GUPTA CA O R D E R PER R.P. TOLANI, J.M : THIS IS REVENUES APPEAL AGAINST CIT(A)S ORDER DATED 17-5-2010 RELATING TO A.Y. 2006-07. 2. GROUND RAISED BY THE REVENUE ARE AS UNDER: 1. THE LD. CIT(A) HAS ERRED IN CONSIDERING THE RELINQUISHED RIGHT OF THE SONS & DAUGHTER IN THE PR OPERTY AS A GIFT; SINCE GIFT OF IMMOVABLE PROPERTY MUST BE MADE BY WAY OF A GIFT DEED IN WRITING AND WHICH MUST BE REGISTERED UNDER THE REGISTRATION ACT/ TRANSFER OF PROPERTY ACT. 2. THE LD. CIT(A) HAS FURTHER ERRED IN DIRECTING THAT THE ASSESSEE AHS TO BE GIVEN THE BENEFIT OF INDEXATION FROM THE YEAR WHEN THE PREVIOUS OWNER WAS THE OWNER; AS INDEXATIO N WILL BE AVAILABLE FROM THE YEAR IN WHICH THE ASSETS WAS FIR ST HELD BY THE CURRENT OWNER. 3. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT THE TAX EFFECT INVOLVED IN REVENUES APPEAL IS LESS THAN RS . 3 LACS AND THEREFORE IN VIEW OF CBDT INSTRUCTION, THE DEPARTMENTAL APPEAL I S NOT MAINTAINABLE AND MAY BE REJECTED AS SUCH. 2 4. LEARNED DR ON THE OTHER HAND, RELIED ON THE ORDE R OF AO. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE MATERIAL AVAILABLE ON RECORD. IT IS NOT DISPUTED THAT THE T AX EFFECT INVOLVED IN REVENUES APPEAL IS LESS THAN RS. 3 LACS. AS PER CB DT INSTRUCTION NO. 1979 DATED 27-3-2000; INSTRUCTION NO. 2 OF 2005 DATED 2 4-10-2005; AND RECENT INSTRUCTION NO. 3 DATED 9 TH FEBRUARY 2011, DEPARTMENTAL APPEALS BEFORE THE ITAT WOULD NOT BE MAINTAINABLE IF THE TAX EFFECT IS BELOW RS. 3 LACS. ADMITTEDLY THE TAX EFFECT INVOLVED IN THE PRESENT A PPEAL IS BELOW RS. 3 LAKHS, THEREFORE, IN VIEW OF THE INSTRUCTIONS OF THE CBDT , REFERRED TO ABOVE, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE. IN ARRIVIN G AT SUCH CONCLUSION WE ARE ALSO FORTIFIED BY THE RATIO OF DECISIONS IN THE FOLLOWING CASES: (1) CIT VS. PRADEEP KUMAR GUPTA (2007) 207 CTR (DEL) 11 5; (2) ACIT VS. SATISH CHAND JAIN (2006) 10 SOT 383 (DEL.) ; (3) ACIT VS. DOON VALLEY MOTORS (2006) 10 SOT 525 (DEL. ); (4) JCIT VS. DEV RAJ AGARWAL (2005) 92 TTJ (LUCKNOW) 43 6; (5) ITA NO. 3839/D/04 & C.O. 28/DEL/07 ITO VS. M/ S M.J. WARE HOUSING (P) LTD.& VICE VERSA DATED 31-8-2007. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25-07-2011. SD/- SD/- ( SHAMIM YAHYA ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 25-07-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 3