VIDHYA DEVI SHARDA, Jaipur V. ITO, Jaipur

ITA 447/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5197 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 09-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VIKAS RAJVANSHI CA SH
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice
• Section: 50C; 54

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 447/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2005-06 SMT. VIDHYA DEVI SHARDA 501AA, SURYA NAGAR, GOPALPURA BYPASS, JAIPUR CUKE VS. THE ITO WARD- 6 (2) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: BEWPS 4100 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VIKAS RAJVANSHI, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI R.A. VERMA, ADDL. CIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/06/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 27 /06/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 05-02-2014 FOR THE ASSESSME NT YEAR 2005-06 RAISING THEREIN FOLLOWING GROUNDS:- (I) THE AO AND LD. CIT(A) HAS ERRED IN LAW AS WELL AS IN FACT IN ARBITRARILY APPLYING THE PROVISIONS O F SECTION 50C OF THE I.T. ACT WITHOUT CONSIDERING THE STAMP V ALUATION AUTHORITY DID NOT ASSESS/ ADOPT THE VALUE ON SALE D EED AND IGNORED THE COVERED DECISION OF HON'BLE ITAT WHICH IS HELD ON THE SAME HALF PORTION OF HOUSE PROPERTY AND ON T HE SAME MATTER AND WRONGLY CONSIDERED ARBITRARILY SALE PRIC E. ITA NO. 447/JP/2014 SMT. VIDHYA DEVI SHARDA VS. ITO, WARD- 6 (2), JAIP UR . 2 (II) THE AO AND THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS IN FACT IN ARBITRARILY NOT ALLOWING GENUINE BENEFIT OF DEDUCTION AVAILABLE TO THE A U/S 54 FOR COMPUTATION OF CAPITAL GAIN. THE AO HAS ALSO NOT FOLLOWED THE BASIC PRINCI PLES OF NATURAL JUSTICE AND HAS NOT GIVEN ANY OPPORTUNITY T O THE ASSESSEE FOR NOT ALLOWING THE BENEFIT OF THE ASSESS EE. THEY IGNORED THE DECISION OF HON'BLE ITAT . HENCE, ORDE R MADE IS NULL AND VOID AB INITIO. (III) THE AO AND THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS IN FACT IN NOT CONSIDERING THE DECISION OF HON'BLE ITAT IN THE CASE OF ANAND SHARDA (WHO IS SON OF THE ASSESSEE AND 50% OWNER OF THE PROPERTY AND HIS CASE WAS DECIDED ON THE SAME GROUNDS AND NOT FOLLOWING THE D OCTRINE OF RES JUDICATA 2.1 AT THE OUTSET OF THE HEARING, THE LD. AR OF THE ASSESSEE PRAYED THAT ISSUES RAISED IN QUESTION ARE COVERED BY THE DECISI ON OF ITAT JAIPUR VIDE ITS ORDER DATED 24-04-2009 IN THE CASE OF SHRI ANAN D SARDA (SON OF SMT. VIDHYA DEVI SARDA) IN ITA NO. 1630/JP/2008 (REVENUE ) AND C.O. NO.10/JP/2009 ( ASSESSEE) WHEREIN THE APPEAL OF TH E REVENUE HAD BEEN DISMISSED AND THE C.O. OF THE ASSESSEE HAD BEEN ALL OWED ON SIMILAR ISSUE. 2.2 THE LD. DR RELIED ON THE ORDER OF THE AUTHORITI ES BELOW. 2.3 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I FIND MERIT IN THE ARGUMENTS OF THE LD. AR OF THE ASSESSEE THAT SIMILAR ISSUE IN THE CASE OF ASSESSEE 'S SON SHRI ANAND SARDA HAS BEEN DECIDED BY THE COORDINATE BENCH BY FOLLOWI NG OBSERVATION. ITA NO. 447/JP/2014 SMT. VIDHYA DEVI SHARDA VS. ITO, WARD- 6 (2), JAIP UR . 3 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. THE ARGUMENTS MADE BY THE LD COU NSEL FOR THE ASSESSEE SHRI VIKAS RAJVANSHI, CHARTERED ACCOUNTANT APPEARS TO BE CONVINCING THAT SECTION 50C IS NOT APPLICABLE IN TH E PRESENT CASE SINCE THE APPLICABILITY OF SAID SECTION IS WHOLLY DEPENDE NT UPON THE VALUE ADOPTED BY THE STAMP VALUATION AUTHORITY WHEREAS IN THE PRESENT CASE NEITHER VALUE HAS BEEN ADOPTED NOR ASSESSED BY STAM P VALUATION AUTHORITY AND THEREFORE, SECTION 50C BECOMES IRRELE VANT IN THE PRESENT CASE. HENCE THE ASSESSEE HAS ADOPTED THE CORRECT VA LUE. THE ASSESSEE HAS ALSO SUBMITTED 9 SALE DEEDS ALONGWITH AFFIDAVIT S OF THE PURCHASERS DURING THE ASSESSMENT PROCEEDINGS WHICH ARE ON RECO RD. IN THE SAID SALE DEEDS, NO OTHER VALUATION HAS BEEN ADOPTED OR ASSES SED BY STAMP VALUATION AUTHORITY. SHRI VIKAS RAJVANSHI, LD COUNS EL FOR THE ASSESSEE RELIED UPON THE DECISION OF JODHPUR BENCH IN THE C ASE OF NAVNEET KUMAR THAKKAR VS. I.T.O. 298 ITR (AT) 42 AND DECISI ON OF DELHI TRIBUNAL IN THE CASE OF RAVI KANT VS. I.T.O. 110 TT J 297 ON IDENTICAL ISSUE. IN SUCH CIRCUMSTANCES AND FACTS OF THE CASE, THE AO IS NOT JUSTIFIED IN INVOKING THE PROVISIONS OF SECTION 50C OF THE ACT AND NO ADDITION IS REQUIRED TO BE MADE. THEREFORE, THE ADD ITION SUSTAINED BY THE LD. CIT(A) IS ALSO DIRECTED TO BE DELETED. THUS THE SOLITARY GROUND OF THE REVENUE IS DISMISSED AND THE SOLITARY GROUN D OF THE C.O. OF THE ASSESSEE IS ALLOWED. IT IS NOTICED THAT THE ISSUES IN QUESTION RAISED BY THE ASSESSEE ARE COVERED BY THE DECISION OF ITAT JAIPUR BENCH (SUPRA). HENCE , I DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE COORDINAT E BENCH (SUPRA) IN SIMILARLY SITUATED CASE. IN THIS VIEW OF THE MATTER , THE ORDERS OF THE LOWER AUTHORITIES ARE DISMISSED AND THE APPEAL OF THE ASS ESSEE IS ALLOWED. ITA NO. 447/JP/2014 SMT. VIDHYA DEVI SHARDA VS. ITO, WARD- 6 (2), JAIP UR . 4 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED ORDER PRONOUNCED IN THE OPEN COURT ON 27/06/2 016 SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27 /06/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SMT. VIDHYA DEVI SHARDA,JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 6(2), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 447/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR