Rajendra Anant Bagade, Pune V. TRO Range-3, Pune

ITA 472/PUN/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0296 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-12-2018
• Assessment Year: 2004-2005
• Appeal Filed On: 13-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Fair market value
• Section: 54B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.530/PUN/2018 / ASSESSMENT YEAR : 2004-05 JANABAI ANANT BAGADE, 812, BHANDARKAR INSTITUTE, BHANDARKAR ROAD, PUNE 411 004 PAN : ALHPB4651J VS. TRO, RANGE-3, PUNE (APPELLANT) (RESPONDENT) . / ITA NO.531/PUN/2018 / ASSESSMENT YEAR : 2004-05 ABHIJIT ANANT BAGADE, 812, BHANDARKAR INSTITUTE, BHANDARKAR ROAD, PUNE 411 004 PAN : ALHPB4651J VS. TRO, RANGE-3, PUNE (APPELLANT) (RESPONDENT) . / ITA NO.532/PUN/2018 / ASSESSMENT YEAR : 2004-05 RAVINDRA ANANT BAGADE, 812, BHANDARKAR INSTITUTE, BHANDARKAR ROAD, PUNE 411 004 PAN : AZBPB2184N VS. TRO, RANGE-3, PUNE (APPELLANT) (RESPONDENT) BAGADE GROUP 2 . / ITA NO.472/PUN/2018 / ASSESSMENT YEAR : 2004-05 RAJENDRA ANANT BAGADE, 812, BHANDARKAR INSTITUTE, BHANDARKAR ROAD, PUNE 411 004 PAN : AJJPB7040D VS. TRO, RANGE-3, PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THESE FOUR APPEALS BY THE DIFFERENT BUT RELATED ASSESSE ES ARE DIRECTED AGAINST THE SEPARATE ORDERS PASSED BY THE CI T(A)- 3, PUNE IN RELATION TO THE ASSESSMENT YEAR 2004-05. SINCE COMMON ISSUE IS RAISED IN ALL THESE APPEALS, I AM, THEREFORE , PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FO R THE SAKE OF CONVENIENCE. 2. THE FACTUAL POSITION AS RECORDED IN THE ASSESSMENT ORD ER OF JANABAI A. BAGADE (ITA NO.530/PUN/2018) IS THAT THE AO RECEIVED INFORMATION IN RESPECT OF SALE TRANSACTION OF A LAND APPELLANTS BY SMT. DEEPA KHARE RESPONDENT BY SHRI M.K. VERMA DATE OF HEARING 06-12-2018 DATE OF PRONOUNCEMENT 07-12-2018 BAGADE GROUP 3 INVOLVING THE ASSESSEE AND HER THREE SONS. SINCE NO INCOM E WAS OFFERED ON SUCH ACCOUNT, THE AO ISSUED NOTICE U/S.14 8. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS SEEN THAT THE ASSESSEE SOLD THE LAND AT S.NO. 191/2A ADMEASURING 43R, PURCHASED IN 1972, ALONG WITH OTHER FAMILY MEMBERS. IN TH E RETURN FILED PURSUANT TO NOTICE U/S.148, THE ASSESSEE DECLARE D 1/4 TH SHARE OF SALE CONSIDERATION AMOUNTING TO RS.35,26,000/-. THE AO OBSERVED THAT 1/4 TH SHARE OF MARKET VALUE AS PER STAMP DUTY AUTHORITIES WORKED OUT AT RS.58,02,840/-. THE MATTER WAS REFERRED TO THE VALUATION OFFICER, VIDE LETTER DATED 01-11-201 1, FOR VALUING THE LAND AS PER THE PROVISIONS OF THE ACT. THE AO OBSERVED THAT TILL COMPLETION OF THE ASSESSMENT, THE REPORT OF THE V.O. WAS STILL AWAITED. APPLYING THE PROVISIONS OF SECTION 50C, THE AO TOOK THE FAIR MARKET VALUE AT RS.58,02,840/- AS THE FULL VALUE OF CONSIDERATION. THE ASSESSEES CLAIM FOR DEDUCTION U/S. 54B WAS ALSO DENIED AS THE NEW PROPERTY WAS PURCHASED IN HER SONS NAME. THE LD. CIT(A) VIDE EX PARTE ORDER COUNTENANCED THE ASSESSMENT ORDER, AGAINST WHICH THE ASSESSEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. BO TH THE SIDES AGREE THAT THE FACTS AND CIRCUMSTANCES OF THE OTHER APPEALS ARE MUTATIS MUTANDIS SIMILAR. BAGADE GROUP 4 3. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE R ELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO MADE A REFERENCE TO THE D VO FOR DETERMINING THE FAIR MARKET VALUE OF THE PROPERTY TO BE CONSIDERED AS FULL VALUE OF CONSIDERATION FOR THE PURPOSES OF COMPUTATION OF CAPITAL GAIN. THE ASSESSMENT ORDER WAS FINALISED WITHOUT WAITING FOR THE REPORT OF THE VALUATION OFFICER. IT IS SEEN THAT THE LD. CIT(A) HAS ALSO PASSED AN EX PARTE ORDER. THE LD. AR SUBMITTED THAT THE DVO ALSO PROCEEDED EX PARTE AND DETERMINED MUCH HIGHER VALUATION IN SUCH PROCEEDINGS WHICH REPORT WAS SUPPLIED ONLY AFTER THE COMPLETION OF THE ASSESSMENT. IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE CONSIDERED OPINION THAT IT WOULD BE JUST AND FAIR IF THE IMPUGNED ORDERS ARE SET ASID E AND THE MATTER IS RESTORED TO THE FILE OF AO. I ORDER ACCORDINGLY AND DIRECT THE CONCERNED AOS TO FRAME THE ASSESSMENTS AFRESH AFTER ALLOWING A REASONABLE OPPORTUNITY O F HEARING TO THE ASSESSEES. NEEDLESS TO SAY, THE ASSESSEES WILL BE AT LIBERTY TO LEAD ANY FRESH EVIDENCE BEFORE THE AO IN SU CH FRESH PROCEEDINGS. BAGADE GROUP 5 4. IN THE RESULT, ALL THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH DECEMBER, 2018. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 07 TH DECEMBER, 2018 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-3, PUNE 4. / THE PR. CIT-2, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE BAGADE GROUP 6 DATE 1. DRAFT DICTATED ON 06-12-18 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 07-12-18 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *