Raga Printers & Electricals Pvt. Ltd., Gurgaon V. DCIT, Noida

ITA 4513/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3874 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 26-10-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 23-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU MUKHERJEE
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER ITA NO.4513/DEL/2016 ASSESSMENT YEAR : 2007-08 RAGA PRINTERS & ELECTRICALS PVT. LTD., C/O. VINOD KUMAR & ASSOCIATES, 1 ST FLOOR, GLOBAL BUSINESS SQUARE, SECTOR- 44, GURGAON. VS. DCIT, CIRCLE- 3, NOIDA. PAN : AADCR4494B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VINOD JAIN, CA DEPARTMENT BY : MS. RANU MUKHERJEE, SR.DR DATE OF HEARING : 18-01-2018 DATE OF PRONOUNCEMENT : 30-01-2018 O R D E R PER R. K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 13.06.2016 OF CIT(A)- I, NOIDA RELATING TO ASSESSME NT YEAR 2007-08. 2. THIS APPEAL WAS EARLIER DISMISSED BY THE TRIBUNA L FOR NON-APPEARANCE. SUBSEQUENTLY, THE TRIBUNAL VIDE ORDER DATED 16.06.2 017 RECALLED ITS EARLIER ORDER. HENCE, THIS IS A RECALLED MATTER. 3. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, THEY ALL RELATE TO THE ORDER OF THE LD. CIT(A) IN DISMISSING THE APPEAL FILED BY THE ASSESSEE IN AN EX-PARTE ORDER BY SUSTAINING THE ADD ITION OF RS.15,08,750/- MADE BY THE ASSESSING OFFICER. THE ASSESSEE HAS ALSO CH ALLENGED THE VALIDITY OF THE RE-ASSESSMENT PROCEEDINGS. 2 ITA NO.4513/DEL/2016 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS ING OFFICER HAD REOPENED THE ASSESSMENT BY ISSUING OF NOTICE U/S 148 OF THE ACT ON 31.03.2014. THE ASSESSING OFFICER, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, OBSERVED THAT THE ASSESSEE COMPANY HAS NOT CARRIED OUT ANY BUSINE SS ACTIVITY AND HAS SOLD PROPERTY FOR RS.60,00,000/-, VALUE OF WHICH AS PER CIRCLE RATE WAS RS.66,40,000/- ON 24.05.2006. THE PROPERTY WAS PURCHASED FOR RS.4 8,00,000/- ON 21.11.2005. IN ABSENCE OF FURNISHING OF ANY DETAILS AND OBSERVI NG THAT THE PROPERTY WAS SOLD IN ITS ORIGINAL SHAPE AND THE ASSESSEE HAS NEVER CA RRIED OUT ANY BUSINESS AS PER THE OBJECTS FOR WHICH IT WAS FORMED THE ASSESSING O FFICER, AFTER CONSIDERING THE STAMP DUTY OF RS.3,84,000/- DETERMINED THE SHORT TE RM CAPITAL GAIN AT RS.15,08,750/- BY SUBSTITUTING THE SALE CONSIDERATI ON AS PER SECTION 50C AT RS.66,92,750/-. SINCE NO ONE APPEARED BEFORE THE L D. CIT(A), HE DISMISSED THE APPEAL FILED BY THE ASSESSEE IN THE EX-PARTE ORDER PASSED BY HIM. 5. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMI TTED THAT THE PROVISIONS OF SECTION 50C ARE NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE AS THERE IS NO SALE AND IT WAS ONLY AN AGREEMENT TO SELL. HE SUBMITTED THAT THE AMENDMENT TO THE PROVISIONS OF SECTION 50C TO INCLUDE THE TRANSACTIO NS WHICH WARE NOT REGISTERED WITH STAMP DUTY VALUATION AUTHORITY AND EXECUTED TH ROUGH AGREEMENT TO SELL OR POWER OF ATTORNEY WAS AMENDED W.E.F. 01.10.2009 AND SHALL ACCORDINGLY BE APPLIED IN RELATION TO THE TRANSACTIONS UNDERTAKEN ON OR AFTER SUCH DATE. SINCE THE ASSESSMENT YEAR INVOLVED IN THE INSTANT CASE IS ASSESSMENT YEAR 2007-08, THEREFORE, THE PROVISIONS OF SECTION 50C ARE NOT AT ALL APPLICABLE. 3 ITA NO.4513/DEL/2016 6. LD. DR ON THE OTHER HAND SUPPORTED THE ORDER OF THE LD. CIT(A). 7. AFTER HEARING THE RIVAL ARGUMENTS MADE BY BOTH T HE SIDES, I FIND THE LD. CIT(A) PASSED THE EX-PARTE ORDER SINCE THERE WAS NO N-APPEARANCE BEFORE HIM DESPITE ISSUE OF NOTICES. HOWEVER, CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, I DEEM IT PROP ER TO RESTORE THE ISSUE TO THE FILE OF THE LD. CIT(A) WITH A DIRECTION TO GIVEN ONE FIN AL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PE R FACT AND LAW. THE ASSESSEE IS HEREBY DIRECTED NOT TO SEEK ANY ADJOURNMENT UNDER A NY PRETEXT AND APPEAR BEFORE THE LD. CIT(A) TO SUBSTANTIATE ITS CASE. TH E GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PU RPOSES. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH JANUARY, 2018. SD/- (R. K. PANDA) ACCOUNTANT MEMBER DATED: 30-01-2018. SUJEET COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI