T.S.R.Khannaiyann, CHENNAI V. ACIT, Coimbatore

ITA 429/CHNY/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2670 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 11-01-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 02-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . . . , . , % BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.429/MDS/2015 ( / ASSESSMENT YEAR: 2006-07) MR. T.S.R. KHANNAIYANN, 67, AVARAM PALAYAM ROAD, K.R.PURAM COIMBATORE-641 018. VS THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-2, COIMBATORE. PAN:AFZPK7832C ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. R.VIJAYARAGHAVAN, ADVOCATE /RESPONDENT BY : MR. A.V.SREEKANTH, JCIT /DATE OF HEARING : 11 TH JANUARY, 2016 /DATE OF PRONOUNCEMENT : 16 TH MARCH, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- 2, COIMBATORE DATED 20.01.2015 IN ITA NO.216/14-15 PASSED UNDER SECTION 254 OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS A PPEAL HOWEVER, THE CRUX OF THE ISSUE IS THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN UPHOLDING THE ADDITION MADE BY THE LEARNED ASSESSIN G OFFICER WHILE GIVING EFFECT TO THE ORDER OF THE TRIBUNAL BY ADOPTING THE 2 ITA NO.429 /MDS/2015 ADDITIONAL STAMP DUTY ACTUALLY PAID BY THE APPELLAN T AND THEREBY EXTRAPOLATING THE SALE VALUE OF THE PROPERT Y SOLD FOR ARRIVING AT THE LONG TERM CAPITAL GAIN. 3. FROM THE FACTS OF THE CASE, IT IS APPARENT THAT ON THE EARLIER OCCASION, THE CHENNAI BENCH OF THE TRIBUNAL HAD DIRECTED THE ASSESSING OFFICER TO MAKE ADDITION TO THE EXTENT OF ADDITIONAL STAMP DUTY PAID BY THE VENDEE UNDER T HE SAMADHAN SCHEME IN RESPECT TO COMPUTATION OF LONG T ERM CAPITAL GAINS ARISING ON SALE OF LAND. THE BRIEF OF THE CASE ARE THAT; THE ASSESSEE HAD DECLARED SALE CONSIDERATION FOR THE SALE OF HIS LAND AS RS.37.00 LAKHS, WHEREAS LOCAL S TAMP AUTHORITIES VALUED THE LAND SOLD AT RS.2,31,58,000/ -. THE PURCHASER HAD DISPUTED THE SAME WITH THE COLLECTOR. HOWEVER, BEFORE THE COLLECTOR COULD DECIDE THE ISSU E THE GOVERNMENT INTRODUCED SAMADHAN SCHEME. IN ACCORDANC E WITH THE SAMADHAN SCHEME, THE GOVERNMENT GRANTED REMISSION OF 40% ON THE DIFFERENCE IN STAMP VALUE I .E. 40% OF {STAMP DUTY DETERMINED BY THE STAMP VALUING AUTHORI TY ON RS.2,31,58,000/- (-) STAMP DUTY DETERMINED BY THE ASSESSEE ON RS.37,00,000/-}. THE LEARNED ASSESSING OFFICER WAS OF 3 ITA NO.429 /MDS/2015 THE VIEW THAT ACCORDING TO 50C OF THE ACT, IN SUCH CIRCUMSTANCES, THE SALE VALUE HAS TO BE ADOPTED AT RS.2,31,58,000/- INSTEAD OF THE ACTUAL SALE OF RS.3 7,00,000/- AND ACCORDINGLY THE DIFFERENCE AMOUNT OF RS.1,94,58 ,000/- WAS HELD TO BE LIABLE FOR TAX UNDER THE HEAD LONG T ERM CAPITAL GAIN. THIS ORDER OF THE ASSESSING OFFICER WAS CONFI RMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). O N THE EARLIER OCCASION, WHEN THE MATTER WAS BROUGHT BEFOR E THE TRIBUNAL, THE CHENNAI BENCH OF THE TRIBUNAL VIDE IT S ORDER DATED 25.06.2012 DIRECTED THE LEARNED ASSESSING OFF ICER TO MAKE THE ADDITION TO THE EXTENT OF ADDITIONAL STAMP DUTY PAID BY VENDEE UNDER SAMADHAN SCHEME. THE GRIEVANCE OF THE ASSESSEE BEFORE US IS THAT EVEN AFTER THE DIRECTION OF THE TRIBUNAL, THE LEARNED ASSESSING OFFICER HAS NOT COM PUTED THE LONG TERM CAPITAL GAIN AS DIRECTED BY THE TRIBUNAL. HOWEVER, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HA S HELD THAT THE ASSESSING OFFICER HAS RIGHTLY CALCULATED T HE SALE CONSIDERATION BY ADOPTING THE ADDITIONAL STAMP DUTY ACTUALLY PAID BY THE APPELLANT AND EXTRAPOLATING THE SAME WH ILE ARRIVING AT THE SALE VALUE. 4 ITA NO.429 /MDS/2015 4. SINCE THE COMPUTATION OF THE LONG TERM CAPITAL G AIN IS NOT MADE AVAILABLE BEFORE US, IN THE INTEREST OF JU STICE, WE HEREBY REMIT BACK THE MATTER TO THE FILE OF THE LEA RNED ASSESSING OFFICER BY FURTHER CLARIFYING THE ORDER O F THE TRIBUNAL DATED 25.06.2013 BY DIRECTING THE LEARNED ASSESSING OFFICER TO COMPUTE THE SALE CONSIDERATION BASED ON EXTRAPOLATING THE SALE VALUE OF THE LAND SOLD AS PE R THE STAMP DUTY ARRIVED IN THE SAMADHAN SCHEME. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON THE 16 TH MARCH, 2016 SD/- SD/- ( . . . ) ( . ) (N.R.S.GANESAN) ( A.M OHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 16 TH MARCH, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /