M/s India Radio Ventures Pvt Ltd , Bangalore V. Income Tax Officer Ward-3(1)(1), Bangalore

ITA 447/BANG/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6205 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 15-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Opportunity of being heard; Application of stay; Set aside
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.447/BANG/2018 ASSESSMENT YEAR : 2014-15 S.P NO.127/BAN/2019 (IN ITA NO.447/BANG/2018) ASSESSMENT YEAR : 2014-15 INDIA RADIO VENTURES PVT. LTD., 3J, 3 RD CROSS, 3 RD BLOCK, 7C MAIN, KORAMANGALA INDUSTRIAL LAYOUT, BENGALURU-560 034. PAN AAACI 7524 A. VS. THE ASST. COMMISSIONER OF INCOME- TAX CIRCLE-6(3)(1), BELLARY. APPELLANT RESPONDENT APPELLANT BY : SMT. SHEETAL, ADVOCATE RESPONDENT BY : SHRI PRADEEP KUMAR, CIT DATE OF HEARING : 05.08.2019 DATE OF PRONOUNCEMENT : 07.08.2019 O R D E R PERB.R BASKARAN,ACCOUNTANT MEMBER THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 22/1/2018 PASSED BY THE LD CIT(A)-3, BENGALUR U AND IT RELATES TO ASST. YEAR 2014-15. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE APPLICATION OF PROVISIONS OF SEC. 50 C OF THE ACT IN RESPECT OF TRANSFER OF LEASE HOLD RIGHTS. ITA NO.447/BANG/2018 S.P NO.127/BANG/2019 PAGE 2 OF 5 3. THE LD COUNSEL APPEARING FOR THE ASSESSEE SUBMIT TED THAT THE LD CIT(A) HAS PASSED AN EX-PARTE ORDER AND HENCE TH ERE WAS NO OPPORTUNITY FOR THE ASSESEE TO PRESENT ITS CASE BEF ORE HIM. THE LD AR SUBMITTED THAT THE PROVISIONS OF SEC. 50C OF THE ACT ARE HELD TO BE NOT APPLICABLE TO LEASE HOLD PROPERTIES BY HON BLE HIGH COURT OF BOMBAY IN THE CASE OF CIT VS. M/S GREEN FILED HOTEL S AND ESTATES PVT. LTD (ITA NO.735/2014 DATED 24/10/2016). THE A BOVE SAID DECISION OF BOMBAY HIGH COURT WAS FOLLOWED BY MUMBA I BENCH OF TRIBUNAL IN THE CASE OF VANDANA D SHETTY VS. ITO IT A NO.6668/MUM/2100) DATED 5/7/2018. SHE SUBMITTED TH AT THE LEASE HOLD PROPERTIES ARE NOT AKIN TO THE PROPERTIE S HELD WITH ABSOLUTE RIGHTS AND IN THIS REGARD SHE PLACED RELIA NCE ON THE DECISION RENDERED BY HONBLE BOMBAY HIGH COURT IN T HE CASE OF THE COLLECTOR OF BOMBAY VS. KHATIZABAI DHARSI SOMJI DO SSA (1962) 64 BOMLR 311. 4. THE LD AR SUBMITTED THAT THE LD CIT(A) HAS DECID ED THE ISSUE BY FOLLOWING THE DECISION RENDERED BY MUMBAI BENCH OF ITAT IN THE CASE OF SHAVO NORGREN PVT. LTD. 33 TAXMANN.COM 91. HOWEVER, THE DECISION RENDERED BY HONBLE BOMBAY HIGH COURT IN T HE CASE OF GREEN FILED HOTELS AND ESTATE PVT. LTD, BEING THE D ECISION OF HIGHER HIERARCHY SHOULD BE PREFERRED OVER THE DECISION REN DERED BY MUMBAI BENCH OF TRIBUNAL IN THE CASE OF SHAVO NORGR EN PVT. LTD. (SUPRA). ACCORDINGLY THE LD AR PRAYED THAT THE ORD ER PASSED BY LD CIT(A) MAY BE REVERSED. ITA NO.447/BANG/2018 S.P NO.127/BANG/2019 PAGE 3 OF 5 5. ON THE CONTRARY, THE LD DR SUBMITTED THAT THE LD CIT(A) WAS CONSTRAINED TO PASS ORDER EX-PARTE, SINCE THE ASSES SEE DID NOT APPEAR BEFORE HIM DESPITE GIVING OPPORTUNITY TO THE ASSESSEE TWO TIMES. 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORD. ADMITTEDLY THE LD CIT(A) HAS PASSED THE ORDER EX-PA RTE, WITHOUT PRESENCE OF THE ASSESSEE. WE NOTICED ABOUT THE LD C IT(A) FOLLOWED THE DECISION RENDERED BY MUMBAI BENCH OF TRIBUNAL I N THE CASE OF SHAVO NORGREN PVT. LTD (SUPRA). HOWEVER BEFORE US, THE ASSESSEE IS PLACING RELIANCE ON THE DECISION RENDERED BY HONBL E HIGH COURT OF BOMBAY IN THE CASE OF M/S GREEN FILED HOTELS AND ES TATES PVT. LTD.(SUPRA). ADMITTEDLY THE DECISION RENDERED BY HO NBLE BOMBAY HIGH COURT SHOULD BE PREFERRED OVER THE DECISION RE NDERED BY THE TRIBUNAL. WE HAVE NOTICED THAT THE ASSESSEE HAS NO T APPEARED BEFORE LD CIT(A) AND HENCE THE FIRST APPELLATE AUTH ORITY DID NOT HAVE THE BENEFIT OF EXAMINING THE ARGUMENTS OF THE ASSES SEE. 7. HENCE, WE ARE OF THE VIEW THAT ALL THE ISSUES AGITATED IN THIS APPEAL ARE REQUIRED TO BE SET ASIDE TO THE FILE OF LD CIT(A) FOR ADJUDICATING THEM AFRESH. ACCORDINGLY WE SET ASIDE THE ORDER PASSED BY LD CIT(A) AND RESTORE ALL THE ISSUES TO H IS FILE WITH THE DIRECTIONS TO ISSUE TO EXAMINE THEM AFRESH BY DULY CONSIDERING THE VARIOUS CASE LAWS RELIED UPON BY THE ASSESSEE. AFT ER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD, THE LD CIT(A) MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 8. SINCE WE HAVE DISPOSED OF APPEAL ITSELF, THE STA Y APPLICATION SHALL BECOME INFRUCTUOUS. ITA NO.447/BANG/2018 S.P NO.127/BANG/2019 PAGE 4 OF 5 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES AND THE STAY APPLICATION IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH AUGUST, 2019. SD/ - (BEENA PILLAI) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 7 TH AUGUST, 2019. / VMS / COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.