Sri Janmejoy Lenka, Bhubaneswar V. ITO, Ward-3(3), Bhubaneswar

ITA 486/CTK/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5261 (ITAT-CUTTACK)
• Duration Of Justice: 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 04-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Valuation report

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH CUTTACK BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER ./ ITA NO. 486 / CTK /20 1 7 ( / ASSESSMENT YEAR : 20 1 4 - 20 1 5 ) SRI JANMEJOY LENKA, PLOT NO.41C , JAYADURGA NAGAR, BHUBANESWAR - 751006 VS. THE ITO, WARD - 3(3), BHUBANESWAR ./ ./ PAN/GIR NO. : A AJPL 0732 B ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : NONE /REVENUE BY : SHRI D.K.PRADHAN , DR / DATE OF HEARING : 28 / 1 2 /201 7 / DATE OF PRONOUNCEMENT 29 / 12 /201 7 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2 , BHUBANESWAR , DATED 21.8.2017 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.29,59,473/ - ON THE BASIS OF VAL UES GIVEN BY SUB - REGISTRAR - IV, GHAZIABAD, UP TO CALCULATE THEIR STAMP DUTY AND THE LEARNED ITO NOT REFERRED TO ANY AUTHORITY FOR PROPER VALUATION OF THE PROPERTY AND MADE ADDITION UNDER L ONG TERM CAPITAL GAIN. 3. BRIEF FACTS OF THE CASE ARE THAT THE AO OBSERVED THAT THE ASSESSEE HAS SHOWN SALE CONSIDERATION OF RS.70 LAKHS FOR SALE OF THE PROPERTY AND THE ASSESSEE CLAIMED DEDUCTION U/S.48 OF THE ACT OF RS.65,61,071/ - AS COST OF IMPROVEMENT. THE AO OBSERVED THAT INFORMATION U/S.133(6) OF THE ACT WAS CALLED FROM THE SUB - REGISTRAR - IV, GHAZIABAD, UP UNDER WHOSE JURISDICTION THE PROPERTY WAS SOLD AND HE VIDE LETTER DATED 08.11.2016 HAS STATED THAT THE FAIR MARKET VALUE OF THE PROPERTY UNDER CONSIDERATION W AS ITA NO. 486 /CTK/201 7 2 RS.96,10,000/ - AS ON THE DATE OF TRANSFER AND STAMP DUTY OF RS.6,73,000/ - WAS PAID DURING REGISTRATION OF THE SAID PROPERTY . THE REFORE, THE AO TREATED RS.96,10,000/ - AS THE FULL VALUE OF CONSIDERATION U/S. 50 - C OF THE ACT, 1961 AS AGAINST THE CLAIM OF THE ASSESSEE RS.70,00,000/ - AND THEREBY MADE ADDITION OF RS.32,06,461/ - TO THE INC OME OF THE ASSESSEE. 4. THE ASSESSEE BEFORE THE AO AS WELL AS THE CIT(A) CONTENDED THAT THE FAIR MARKET VALUE OF THE PROPERTY WAS RS.70,00,000/ - AND THE STAMP DUTY VALUE WAS MUCH HIGHER THAN THE FAIR MARKET VALUE OF THE PROPERTY AND, THEREFORE, THE MATTER SHOULD BE REFERRED TO THE DVO FOR HIS VALUATION. THE AO AS WELL AS THE CIT(A) DID NOT ACCEPT THIS PLEA OF THE ASSESSEE AND THE ADDITION M ADE BY THE AO WAS CONFIRMED BY THE CIT(A) IN APPEAL. 5. THE AR OF THE ASSESSEE HAS FILED ADJOURNMENT PETITION AND THE BENCH WAS OF THE VIEW THAT THE APPEAL CAN BE DISPOSED OFF WITHO UT THE ASSISTANCE OF AR OF THE ASSESSEE AFTER CONSIDERING THE MATERIALS AVAILABLE ON RECORD AND THE SUBMISSIONS OF THE DR. THEREFORE, THE BENCH PROCEEDED TO HEAR AND DISPOSE OFF THE APPEAL OF THE ASSE SSEE EX - PARTE QUA THE ASSESSEE AFTER REJECTING THE ADJOURNMENT PETITION. 6. THE DR RELIED ON THE ORDERS OF THE LOWER A UTHORITIES. HOWEVER, ON A QUER Y OF THE BENCH AS TO WHY THE MATTER WAS NOT REFERRED TO THE DVO WHEN THE ASSESSEE CLAIMED THAT THE FAIR MARKET VALUE OF THE PROPERTY IN QUESTION WAS DETERMINED BY THE SUB - REGISTRAR - IV, GHAZIABAD, UP AT RS.96,00,000/ - WAS MUCH HIGHER THAN THE FA IR MARKET VALUE OF THE PROP ERTY , T H E DR COULD NOT SUBMIT ANY REPLY . ITA NO. 486 /CTK/201 7 3 7. IN THE ABOVE BACKGROUND OF THE CASE, I AM OF THE CONSIDERED VIEW THAT IN THE INTEREST OF RENDERING SUBSTANTIAL JUSTICE, THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF AO TO ADJUDICATE THE ISSUE OF DETERMINATION OF LONG TERM CAPITAL GAIN ON THE PROPERTY AFRESH AFTER OBTAINING THE VALUATION REPORT FROM THE DVO AND ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. I, THEREFORE, SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND REMAND THE MATTER BACK TO THE FILE OF AO TO READUDICATE THE ISSUE AFRE SH IN THE LIGHT OF THE DISCUSSION MADE HEREINABOVE AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 8 . IN THE RESULT, APPEAL O F THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 / 12 /201 7 . SD/ - (N. S. SAINI) / ACCOUNTANT MEMBER CUTTACK ; DATED 29 / 12 /201 7 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR P RIVATE SECRETARY ) , / ITAT, CUTTACK 1. APPELLANT - SRI JANMEJOY LENKA, PLOT NO.41C , JAYADURGA NAGAR, BHUBANESWAR - 751006 2. / THE RESPONDENT - ITO, WARD - 3 ( 3 ), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//