Apna Ghar Awas Vittiya Sansthan, Haridwar V. ITO, Uttrakhand

ITA 4168/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53202 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-11-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 16-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y S KAKKAR
• Assessee Lawyers: SUDHANSHU SHARMA
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER ITA NO.4168/DEL/2011 ASSESSMENT YEAR : 2000-01 APNA GHAR AWAS VITTIYA SANSTHAN, C/O SHRI RANVEER SHARMA, ADVOCATE, 1 ST FLOOR, SHRI GANESH COMPLEX, RANIPUR MORE, HARIDWAR. PAN : AAQFA2329Q VS. ITO, KOTDWAR, UTTARAKHAND. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SUDHANSHU SHARMA, CA REVENUE BY : MS Y.S. KAKKAR, SR.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A) DATED 1 ST JULY, 2011 FOR ASSESSMENT YEAR 2000-01. THE GROUNDS OF APPEAL READ AS UNDER:- 1. ON FACTS AND ON MATTER OR LAW, COMMISSIONER OF INCO ME TAX (APPEALS)-II IS NOT JUSTIFIED IN HOLDING THAT THE REASON S FOR RE- OPENING OF THE ASSESSMENT WERE DULY COMMUNICATED TO THE ASSESSEE, AND HENCE THE EXERCISE U/S 148 IS BONA FID E. 2. ON FACTS AND UNDER CIRCUMSTANCES, COMMISSIONER OF INCOME TAX (APPEALS)-II IS NOT JUSTIFIED IN CONFIRMING THE AD DITION OF THE SUM OF RS.702257.00 ON ACCOUNT OF REVALUING THE VA LUE OF CLOSING STOCK. ITA NO.4168/DEL/2011 2 2. GROUND NO.1 WAS NOT PRESSED, HENCE, DISMISSED BEING NO T PRESSED. THE ONLY GROUND LEFT FOR OUR CONSIDERATION I S RELATING TO AN ADDITION OF RS.7,02,257/- WHICH HAS BEEN MADE BY THE ASSESSING OFFICER ON ACCOUNT OF VALUATION OF CLOSING STOCK. TH E ASSESSEE IS ENGAGED IN THE BUSINESS OF PURCHASE OF LAND AND DEVELOP ING THE SAME FOR SELLING IN THE SHAPE OF SMALL PLOTS. THE ASSESSING OFF ICER TAKING ALL THE STOCKS OF THE LANDS OF THE ASSESSEE IN ONE ACCOUNT HAS VALUED THE CLOSING STOCK OF THE ASSESSEE @ ` 18 PER SQ. FT. AGAINST TH E AVERAGE CLOSING STOCK RATE SHOWN BY THE ASSESSEE AT ` 10.75 SQ. FT. AND, THUS, HAS ADDED A SUM OF ` 7,02,257 TO THE RETURNED INCOME OF THE ASSESSEE. LEARNED CIT (A) HAS UPHELD THE ACTION OF THE ASSESSING O FFICER. THE ASSESSEE IS AGGRIEVED, HENCE, IN APPEAL. AT THE OUTSET, IT WAS POINTED OUT BY THE LD. COUNSEL OF THE ASSESSEE THAT ONLY ONE PIE CE OF LAND IS IN THE CLOSING STOCK OF THE ASSESSEE WHICH COMPRISES 19 BIGHA S X 6477 SQ. FT. IT WAS FURTHER SUBMITTED THAT NO ADDITION COU LD HAVE BEEN MADE BY THE ASSESSING OFFICER AS THE ASSESSEE, ACCORDING TO WELL ESTABLISHED PRINCIPLES OF VALUING CLOSING STOCK CAN ADOPT THE COST OF MARKET RATE WHICHEVER IS LOWER. HE, THEREFORE, CONTENDED THAT T HE ASSESSING OFFICER COULD NOT HAVE TAKEN THE VALUE OF CLOSING STO CK OF ASSESSEE AT ` 18 PER SQ. FT. AS AGAINST COST OF THE ASSESSEE AT ` 10.75 SQ . FT. 3. ON THE OTHER HAND, THE LEARNED DR RELIED UPON TH E ORDER OF ASSESSING OFFICER AND CIT (A). 4. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. THERE IS A FORCE IN T HE CLAIM OF THE ASSESSEE THAT IF LAND COMPRISING ANY CLOSING STOCK IS IDENT IFIABLE AND ITS COST HAS BEEN SHOWN TO BE INCURRED IN THE BOOKS OF ACCO UNT OF THE ASSESSEE AND THAT HAS BEEN ACCEPTED BY THE REVENUE, THEN , CLOSING STOCK OF THE ASSESSEE CANNOT BE VALUED FOR ANY AMOUNT HI GHER THAN THE COST. THEREFORE, WE RESTORE THIS ISSUE TO THE FILE OF A SSESSING OFFICER ITA NO.4168/DEL/2011 3 WITH A DIRECTION THAT IF ASSESSEE IS ABLE TO ESTABLISH THA T CLOSING STOCK OF LAND OWNED BY IT COMPRISED OF THE AFOREMENTIONED PROPERTY ONLY AND ITS COST IS ONLY ` 10,42,290/- AS STATED IN THE AFOREMEN TIONED CHART, THEN, ITS VALUE SHOULD BE TAKEN ON COST AND THE ASSESSEE SH OULD BE GRANTED APPROPRIATE RELIEF ACCORDINGLY. THEREFORE, JUST FOR THE PURPOSE OF VERIFICATION WE RESTORE THIS ISSUE TO THE FILE OF ASSE SSING OFFICER WHO WILL DECIDE THE ISSUE IN ACCORDANCE WITH THE AFOREMEN TIONED DIRECTIONS. THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES IN THE MA NNER AFORESAID. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22.11.20 11. SD/- SD/- [A.N. PAHUJA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 22.11.2011. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES ITA NO.4168/DEL/2011 4