SHRI PANKAJ KUMAR SINGH, Koderma V. ITO, Koderma

ITA 389/RAN/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1113 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 27-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHA SINGH MARR
• Keywords: Opportunity of being heard
• Section: 143(3); 142(1); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER& MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO. 389/RAN/2018 (ASSESSMENT YEAR: 2015-16) SHRI PANKAJ KUMAR SINGH C/O SHRI RAMESHWAR SINGH, GIRIDIH ROAD, MAHAVIR MOHALLA, KODERMA-825410 VS. INCOME TAX OFFICER WARD-1(5), KODERMA [PAN NO. ASE PS1 518 H] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI DEVESH PODDAR, ADVOCATE RESPONDENT BY : SMT. NISHA SINGHMARR, JCIT (D.R.) DATE OF HEARING 07.11.2019 DATE OF PRONOUNCEMENT 10 .1 2 . 2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL AT THE BEHEST OF THE ASSESSEE I S DIRECTED AGAINST THE ORDER DATED 26.10.2018 PASSED BY THE LD. CIT(AP PEALS), HAZARIBAG, JHARKHAND ARISING OUT OF THE ORDER DATED 19.12.2017 PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT (HEREINAFTER REFERRED AS TO THE ACT) PASSED BY THE ITO WARD-1(5), KODERMA FOR A.Y. 2015-16. 2. THE ADDITION UNDER SECTION 56(2)(VII) OF THE A CT, TO THE TUNE OF RS. 33,48,750/- HAS BEEN CHALLENGED BEFORE US. THE ASSESSEE IS AN INDIVIDUAL FILED ITS RETURN OF INCOME FOR THE A.Y. 2015-16 ON 17.03.2016 DECLARING TOTAL INCOME AT RS. 3,81,160/- SHOWING TH E SAME AS INCOME ITA NO.389/RAN/2018 SHRI PANKAJ KUMAR SINGH VS.ITO ASST.YEAR 2015-16 - 2 - FROM BUSINESS. UP ON SCRUTINY NOTICES UNDER SECTIO N 143(2) AND 142(1) DATED 27.07.2016 WERE ISSUED AGAINST THE ASSESSEE. AS PER THE DIRECTION OF THE AO THE ASSESSEE SUBMITTED THE REQUIRED DOCUM ENTS INCLUDING THE DETAILS OF INVESTMENT IN IMMOVABLE PROPERTY, THE CO PY OF THE AGREEMENT FOR SALE AND THE DEED OF CONVEYANCE ETC. DURING THE COURSE OF ASSESSMENT PROCEEDING IT WAS FOUND THAT THE ASSESSEE PURCHASED A PIECE OF LAND MEASURING ABOUT 1.15 ACRE BEARING KHATA NO. 141, PLOT NO. 3397, WARD-10, KODERMA ALON G WITH HIS BROTHER NAMELY KUMAR GOURAV FOR A TOTAL SUM OF CONSIDERATIO N OF RS. 27,91,000/- ; RS. 13,95,500/- BEING THE 50% OF IT, WAS PAID BY THE ASSESSEE. HOWEVER, THE GOVERNMENT VALUATION OF THIS PROPERTY WAS OF RS. 94,87,500/- AS INTIMATED BY THE LETTER BEING NO. 23 7 DATED 25.11.2017 ISSUED BY THE SUB-REGISTRAR, KODERMA IN REPLY TO TH E LETTER DATED 17.11.2017 BY THE LD. AO, REQUESTING FOR SUCH INFOR MATION. 3. IT APPEARS FROM THE RECORDS AS ALSO SUBMITTED BY THE LD. ADVOCATE APPEARING FOR THE ASSESSEE, THAT BY AND UNDER THE W RITTEN SUBMISSION DATED 10.11.2017, THE ASSESSEE SUBMITTED BEFORE THE AO, THAT THE LAND IS SITUATED IN A SMALL VILLAGE OF KODERMA. MORESO, A HIGH TENSION WIRE HAS GONE ABOVE THE SAID LAND AND, THEREFORE, THE MARKET VALUE FIXED BY THE GOVERNMENT FOR PAYMENT OF STAMP DUTY, THEREOF IS TO O HIGH. IN THAT VIEW OF THE MATTER, THE ASSESSEE PARTICULARLY REQUESTED THE AO TO REFER THE MATTER TO THE VALUATION SALE FOR A REPORT ON THE VA LUATION OF THE SAID LAND IN QUESTION. IT FURTHER APPEARS FROM THE ORDER PAS SED BY THE LD. AO THAT THE SAID REQUEST MADE BY THE ASSESSEE FOR REFERRING THE MATTER BEFORE THE ITA NO.389/RAN/2018 SHRI PANKAJ KUMAR SINGH VS.ITO ASST.YEAR 2015-16 - 3 - DEPARTMENTAL VALUATION OFFICER COULD NOT BE EXECUTE D TO SINCE IT WAS MADE AT THE FAG END OF THE ASSESSMENT. NEITHER THE SAID ISSUE WAS RAISED BEFORE THE REGISTRAR DURING THE TIME OF REGISTRATIO N OF THE SAID PLOT OF LAND AS ALSO OBSERVED BY THE LD. AO. THIS PARTICULAR AS PECT OF THE MATTER, THOUGH RE-AGITATED BEFORE THE LD. CIT(A) THE SAME H AS NOT BEEN TAKEN INTO CONSIDERATION. ON THE CONTRARY, THE ORDER OF ADDITION PASSED BY THE LD. AO HAS BEEN CONFIRMED. IT IS A SETTLED PRINCIPLE OF LAW THAT IN SUCH A CA SE, IT IS THE DUTY INCUMBENT UPON THE AO IN ORDER TO GIVE A FAIR TREAT MENT TO THE ASSESSEE TO REFER THE MATTER TO THE DEPARTMENTAL VALUATION OFFI CER (DVO) AS CONTEMPLATED IN THE PROVISION OF LAW. HOWEVER, WE FIND THAT BOTH THE AUTHORITIES BELOW HAS FAILED TO GIVE SUCH FAIR TREA TMENT BY USING THE ADEQUATE MACHINERY PROVIDED BY LEGISLATURE. ON THI S PARTICULAR ASPECT OF THE MATTER WE HAVE FURTHER CAREFULLY CONSIDERED THE JUDGMENT PASSED BY THE HONBLE CALCUTTA HIGH COURT IN THE MATTER OF SU NIL KUMAR AGARWAL VS. CIT (2015) 372 IT 83 (CAL.) WHERE IT HAS BEEN D ECIDED THAT WHEN THE ASSESSEE HAS OBJECTED TO THE VALUATION AS DETERMINE D BY THE LD. AO ON THE BASIS OF THE JANTRI RATE PREVAILING AT THE DATE OF SALE IT WAS THE DUTY INCUMBENT UPON THE LD. AO TO REFER THE MATTER TO TH E DEPARTMENTAL VALUATION OFFICER IN TERMS OF THE SAID PROVISION OF LAW. 4. WE, THEREFORE, RESPECTFULLY RELYING UPON THE JUD GMENT PASSED BY THE HONBLE HIGH COURT AT CALCUTTA FIND IT FIT AND PROPER TO RESTORE THE ISSUE TO THE FILE OF THE AO WITH A DIRECTION UPON H IM TO REFER THE VALUATION OF THE PROPERTY TO THE DEPARTMENTAL VALUATION OFFIC ER AND TO FRAME A ITA NO.389/RAN/2018 SHRI PANKAJ KUMAR SINGH VS.ITO ASST.YEAR 2015-16 - 4 - FRESH ASSESSMENT IN THE LIGHT THEREOF I.E. THE REPO RT OF THE DVO IN ACCORDANCE WITH LAW AND PARTICULARLY UPON GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND TO PASS A SPEAKING ORDER THEREON. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 10/12/2019 SD/- SD/- (PRADIP KUMAR KEDIA) (MS. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 10/12/2019 TANMAY, SR. PS TRUE COPY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)- 5. , ! ' , #$%% / DR, ITAT, RANCHI 6. &' () / GUARD FILE. / BY ORDER, (SR. PRIVATE SECRETARY) / ITAT, RANCHI 1. DATE OF DICTATION 06.12.2019 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 09.12.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S .12.2019 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT .12.2019 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 10.12.2019 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.12.2019 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER