Asstt. Commissioner of Income Tax, Lucknow V. Shri Dharam Chand Goel, Lakhimpur-Kheri

ITA 47/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4614 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-02-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 13-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAPER BOOK WRITTEN SUBMISSION
• Keywords: Unexplained investment; Value adopted by valuation officer; Fair market value

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.46/LKW/2015 ASSESSMENT YEAR 2011-12 SMT. DEVI GOEL, B-13,SECTOR-C, ALIGANJ, LUCKNOW PAN ADUPG 4322 L VS ACIT, CENTRAL CIRCLE-II, LUCKNOW ITA NO.47/LKW/2015 ASSESSMENT YEAR 2011-12 SHRI DHARAM CHAND GOEL, MAILANI STATION ROAD, DISTT. LAKHIMPUR KHERI PAN ABVPG 9052 C VS ACIT, CENTRAL CIRCLE-II, LUCKNOW (RESPONDENT) (APPELLANT) SHRI AJEET KUMAR SINGH, CIT DR APPELLANT BY PAPER BOOK /WRITTEN SUBMISSION RESPONDENT BY 29 / 0 2 /201 6 DATE OF HEARING 15 /0 3 /2016 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. BOTH THESE APPEALS ARE FILED BY THE REVENUE WHICH A RE DIRECTED AGAINST TWO SEPARATE ORDERS OF LD. CIT(A)-III, LUCKNOW BOTH DAT ED 29.09.2014 FOR ASSESSMENT YEAR 2011-12 IN THE CASES OF TWO DIFFERE NT ASSESSEES I.E. SMT. DEVI GOEL AND SHRI DHARAM CHAND GOEL. BOTH THESE AP PEALS WERE HEARD TOGETHER ON THE BASIS WRITTEN SUBMISSIONS AND PAPER BOOK FILED BY THE LEARNED AR OF THE ASSESSEE AS HE DID NOT APPEAR ON THE LAST DATE OF HEARING. 2 2. LD. DR OF THE REVENUE SUPPORTED THE ASSESSMENT O RDER IN BOTH CASES. 3. WE HAVE CONSIDERED THE WRITTEN SUBMISSIONS AND P APER BOOK FILED BY THE LEARNED AR OF THE ASSESSEE AND SUBMISSION OF LD . DR OF THE REVENUE AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. 4. FIRST, WE DECIDE THE APPEAL OF THE REVENUE IN TH E CASE OF SMT. DEVI GOEL I.E ITA NO.46/LKW/2015. WE FIND THAT THE ISSUE WAS DECIDED BY LD. CIT(A) IN FAVOUR OF THE ASSESSEE ON TWO BASIS. FIRS T BASIS IS THAT AS PER THE JUDGMENT OF THE HONBLE APEX COURT RENDERED IN THE CASE OF SARGAM CINEMA VS. CIT REPORTED IN 197 TAXMAN 203 (SC), REF ERENCE MADE BY THE ASSESSING OFFICER TO VALUATION OFFICER SECTION 142A WITHOUT REJECTING THE BOOKS OF ACCOUNT IS NOT VALID. ON MERIT ALSO, HE HA S GIVEN A FINDING THAT THE DVO REPORT DOES NOT SHOW THAT THERE IS AN EXTRA INV ESTMENT OVER AND ABOVE THE DECLARED AMOUNT AND HE HAS GIVEN A CATEG ORICAL FINDING THAT THE REPORT IS ONLY AN ESTIMATE OF THE FAIR MARKET VALUE AND NOT AN ESTIMATE OF INVESTMENT. HE HAS ALSO HELD THAT THE DVOS REPORT ON MARKET VALUATION IS RELEVANT FOR WEALTH TAX BUT FOR THE PURPOSES OF SEC TION 69, UNEXPLAINED INVESTMENT IS RELEVANT AND NOT THE FAIR MARKET VALU E. HE HAS GIVEN AN EXAMPLE THAT IF THE INVESTMENT IN THE BUILDING WAS RS.1.00 LAKH IN APRIL, 203 AND NOW THE FAIR MARKET VALUE OF THE SAME BUILDING BECOMES 1.45 LAKH, NO ADDITION CAN BE MADE OF RS.45,000/-. LD. DR OF THE REVENUE COULD NOT CONTROVERT ANY OF THESE FINDINGS OF LD. CIT(A) AND THEREFORE, WE DECLINE TO INTERFERE IN THE ORDER OF LD. CIT(A). 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. 6. NOW, WE TAKE UP THE APPEAL OF THE REVENUE IN THE CASE OF SHRI DHARAM CHAND GOEL I.E. ITA NO. 47/LKW/2015. 3 7. IN THIS CASE ALSO, THE ORDER OF LD. CIT(A) IS ON SIMILAR LINE I.E. BY FOLLOWING THE JUDGMENT OF THE HONBLE APEX COURT RE NDERED IN THE CASE OF SARGAM CINEMA (SUPRA) AND ON THE BASIS OF THIS FIND ING THAT DVOS REPORT IN THIS CASE ALSO IS BASED ON FAIR MARKET VALUATION AND NOT ABOUT UNEXPLAINED INVESTMENT IN THE PROPERTY. THEREFORE, ON SIMILAR LINE, IN THIS CASE ALSO, WE DECLINE TO INTERFERE IN THE ORDER OF LD. CIT(A). 8. IN THE RESULT, APPEAL OF THE REVENUE IN THE CASE OF SHRI DHARAM CHAND GOEL IS ALSO DISMISSED. 9. IN THE COMBINED RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED ON THE CAPTION PAGE) SD/- SD/- (SUNIL KUMAR YADAV) (A.K. GARO DIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 15/03/2016 AKS COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR