Shri Niresh Khandelwal, Indore V. The ACIT 1(2), Indore

ITA 435/IND/2013

• Counselvise Citation: 43522714 RSA 2013
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 11-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Sale consideration of property below Jantri Value; Valuation report
• Section: 50C

Judgement Text

1 INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 435/IND/2013 A.Y. 2008-09 SHRI NIRESH KHANDELWAL INDORE PAN AMAPK 1791J :: APPELLANT VS ASSTT. COMMISSIONER OF INCOME TAX 1(2) INDORE :: RESPONDENT ASSESSEE BY SHRI S.S. DESHPANDE REVENUE BY SHRI R.A. VERMA DATE OF HEARING 9.10.2013 DATE OF PRONOUNCEMENT 9.10.2013 O R D E R PER JOGINDER SINGH , JUDICIAL MEMBER THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 18.2.2013 OF THE LEARNED FIRST APPELLATE AUTHORITY. THE ONLY GROUND RAISED IN THIS APPEAL PERTAINS TO MAINTAININ G CAPITAL GAINS 2 OF RS.1,71,06,750/- FROM THE SALE OF PLOT BY APPLYI NG SECTION 50C OF THE ACT TAKING THE SALE CONSIDERATION ON THE BAS IS OF VALUATION DONE BY THE VALUATION OFFICER. 2. THE CRUX OF ARGUMENTS ADVANCED ON BEHALF OF THE ASSESSEE IS THAT ANY REASONABLE MARKET RATE MAY BE ADOPTED BY T HE TRIBUNAL AS COMPLETE DETAILS ABOUT THE SALES WERE FILED BEFO RE THE ASSESSING OFFICER AS WELL AS BEFORE THE LEARNED CIT (A). IT WAS ALSO PLEADED THAT THE VALUE DECLARED BY THE ASSESSEE AS ON 1.4.1981 WAS NOT CONSIDERED IN PROPER PERSPECTIVE. ON THE O THER HAND, THE LEARNED SENIOR DR STRONGLY DEFENDED THE IMPUGNED OR DER BY SUBMITTING THAT A REASONABLE VIEW HAS ALREADY BEEN TAKEN BY THE LEARNED CIT(A) WHICH DESERVES TO BE UPHELD. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL, DECLARED TOTAL INCOME AT RS.35,51,900/- IN HIS RETURN FILED ON 31.7.2008. T HE LEARNED ASSESSING OFFICER, DURING ASSESSMENT PROCEEDINGS, A SKED THE ASSESSEE TO FURNISH DETAILS/DOCUMENTS IN RESPECT OF PURCHASE AND SALE OF LAND FROM WHICH LONG TERM CAPITAL GAIN WAS OFFERED. 3 THE ASSESSEE VIDE SUBMISSION DATED 26.8.2010 FURNIS HED THE COPY OF PURCHASE DEED DATED 30 TH MARCH, 1971. TO DETERMINE THE VALUE OF LAND AS ON 1.4.1981 THE ASSESSEE OBTAINED VALUATION REPORT FROM THE REGISTERED VALUER WHO ESTIMATED THE LAND AT RS.17,57,250/- @ RS. 275/- PER SQ. FT. THE VALUATIO N REPORT WAS ALSO FURNISHED. THE ASSESSEE ALSO FURNISHED COPY OF SALE DEED DATED 23 RD OCTOBER, 2007 WHEREIN THE TRANSACTION VALUE WAS RS.1,79,50,000/- AND THE GUIDELINE VALUE FOR STAMP DUTY WAS RS.2,03,16,000/-. IN ORDER TO DETERMINE THE VALUATI ON THE VALUATION REPORT OF THE ASSESSEE WAS REFERRED TO TH E VALUATION OFFICER ON 1.11.2010. THE VALUATION OFFICER ESTIMA TED THE MARKET VALUE AT THE RATE OF RS.262.62 PER SQ.FT. VIDE REPO RT DATED 16.12.2010, THUS ARRIVED AT THE MARKET RATE OF RS.6 6.07 PER SQ. FT VALUING THE LAND AT RS.4,22,187/- AS ON 1.4.1981. T HIS VALUATION WAS PROVIDED TO THE ASSESSEE FOR HIS COMMENTS. THE COMMENTS OF THE ASSESSEE WERE CONSIDERED AND FINALLY ADOPTED TH E VALUE AT RS.4,22,187/- AGAINST THE CLAIM OF LAND AT RS.17,57 ,300/- AS ON 1.4.1981. THE SALE CONSIDERATION WAS CONSIDERED AT RS.1,94,33,000/-. THE TAXABLE CAPITAL GAIN WAS WORK ED OUT TO 4 RS.1,71,06,750/-. ON APPEAL, THE LEARNED CIT(A) AFF IRMED THE SAME WHICH IS UNDER CHALLENGE BEFORE THE TRIBUNAL. 3.1 IF THE OBSERVATION MADE ASSESSMENT ORDER, CONCL USION DRAWN IN THE IMPUGNED ORDER, ASSERTION MADE BY THE LEARNED RESPECTIVE COUNSEL AND THE MATERIAL AVAILABLE ON RE CORD ARE KEPT IN JUXTAPOSITION AND ANALYSED, WE NOTE THAT THE ASS ESSEE HAS CHALLENGED THE CALCULATION OF CAPITAL GAINS AT RS. 1,71,06,750/- FROM THE SALE OF THE PROPERTY BY APPLYING SECTION 5 0C OF THE ACT. THE UNCONTROVERTED FACT IS THAT SUCH CONCLUSION WAS ARRIVED AT BY THE ASSESSING OFFICER ON THE BASIS OF VALUATION REP ORT SOUGHT FROM THE GOVERNMENT VALUER WHO CONSIDERED THE VALUATION DONE BY THE VALUER OF THE ASSESSEE ALSO. THE VALUATION OFFICER ADOPTED THE VALUE AT RS. 66/- PER SQ. FT. AS ON 1.4.1981. WHIL E ARRIVING AT A PARTICULAR CONCLUSION, THE SALE INSTANCES OF SOUTH TUKOGANJ WERE CONSIDERED AND AFTER GIVING THE WEIGHTAGE OF LOCATI ON AND INDEXATION AT 15% PER YEAR, THE VALUE WAS DETERMINE D AT RS.1,94,33,000/- AGAINST THE VALUE ADOPTED BY THE R EGISTERING AUTHORITY AT RS.2,03,16,000/-. THE VALUATION OFFICE R ALSO CONSIDERED THE OBJECTIONS RAISED BY THE ASSESSEE AN D THE GUIDELINES FIXED BY THE COLLECTORATE/REGISTERING AU THORITY. IF 5 COLLECTORATE RATE FOR THE PURPOSES OF STAMP DUTY VA LUATION AND OTHER CIRCUMSTANCES ARE KEPT IN RECORD, WE FIND NO INFIRMITY IN THE STAND OF THE LEARNED CIT(A). IT IS AFFIRMED. FINALLY, THE APPEAL OF THE ASSESSEE IS HAVING NO M ERIT, THEREFORE, DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 25.10.2013. SD/- SD/- (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 25.10.2013 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE VYAS 2525