MASTER HOMES, ULHASNAGAR V. ITO 2 (2), KALYAN

ITA 4991/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0615 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 28-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AKHTAR H ANSARILD
• Assessee Lawyers: NEHA PARANJPE LD
• Keywords: Sale consideration of property below Jantri Value
• Section: 43CA; 143(3)

Judgement Text

1 ITA NO.4991/MUM/2018 A.Y.2014-15 MASTER HOMES - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.4991/MUM/2018 ( / ASSESSMENT YEAR:2014-15 ) M/S. MASTER HOMES OFFICE NO.12-13, SAI DHARAMDAS MARKET 1 ST FLOOR, NEHRU CHOWK ULHASNAGAR-421 002. / VS. INCOME TAX OFFICER - 2(2) - KALYAN 2 ND FLOOR, MOHAN PLAZA WAYALE NAGAR KHADAKPADA KALYAN WEST-421 301. '# ./ ./PAN/GIR NO. AAOFM-1002-G ( #% /APPELLANT ) : ( &'#% / RESPONDENT ) REVENUE BY : SHRI AKHTAR H. ANSARI-LD.DR ASSESSEE BY : SHRI NEHA PARANJPE-LD. AR / DATE OF HEARING : 16/09/2019 / DATE OF PRONOUNCEMENT : 16/09/2019 / O R D E R PER BENCH: - 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2014-15 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-3, THANE, 2 ITA NO.4991/MUM/2018 A.Y.2014-15 MASTER HOMES [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO.10556-THN/16-17 DATED 01/06/2018 ON FOLLOWING GROUNDS OF APPEAL: - 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-I II, THANE [HERE IN AFTER REFERRED TO AS ' LD CIT (A)'] ERRED IN PASSING THE ORDER DAT E 01-06-2018 HAS RETAINED ENTIRE ADDITION OF RS. 1801000/-. INCOME ASSESSED B Y LD. I.T.O. 2(2) AT KALYAN BY TAKING F.M.V. OF SALE VALUE IN PLACE OF ACTUAL SALE VALUE & ADDITION MADE BY I.T.O. 2(2) AT KALYAN @ 1801000/- IS RETAINED & CONFIRMED. THE APPELLANT FIRM IS BUILDERS & DEVELOPERS. 2. LD. C.I.T.(A-III) THANE NOT ACCEPTED RELIANCE OF HON'BLE TRIBUNAL MUMBAI IN THE CASE OF M/S. JOHN POWER INDIA PVT. LTD. V/S. DCIT I TA 7545/MUM/2014. & CONFIRMED THE ADDITION OF LD. I.T.O. 2(2) KALYAN @ RS. 1801000/-. : 3. LD. C.I.T.(A-III) THANE ERRED IN NOT CONSIDERIN G THAT DIFFERENCE IN ACTUAL SALE VALUE & F.M.V. IS EVEN LESS THAN 10%. 4. AN APPEAL FEE PAYABLE @ RS. 10000/- IS PAID CHA LLAN IS SUBMITTED HEREWITH. 5. ADDITIONS MADE BY LD. I.T.O. & CONFIRMED BY LD. C.I.T.(A-III) THANE @ 1801000/- IS NOT JUSTIFIED MAY KINDLY BE DELETED. 2.1 FACTS ON RECORD WOULD REVEAL THAT THE ASSESSEE BEING RESIDENT FIRM STATED TO BE ENGAGED AS BUILDERS & DEVELOPERS WAS A SSESSED U/S 143(3) ON 21/12/2016 WHEREIN THE ASSESSEE WAS SADDLED WITH AD DITION OF RS.18.01 LACS. 2.2 DURING ASSESSMENT PROCEEDINGS, IT TRANSPIRED TH AT THE ASSESSEE ENTERED INTO SALE TRANSACTION OF IMMOVEABLE PROPERT IES IN THE SHAPE OF VARIOUS SHOPS, THE DETAILS OF WHICH HAVE ALREADY BE EN EXTRACTED AT PARA-5 OF THE QUANTUM ASSESSMENT ORDER. IT WAS NOTED THAT SAL E CONSIDERATION OF SOME OF THE SHOP WAS LESS THAN MARKET VALUE / STAMP DUTY VALUE. THE LEARNED A.O., INVOKING THE PROVISIONS OF SECTION 43 CA, ADDED THE DIFFERENTIAL AMOUNT I.E. RS.18.01 LACS TO THE INCOM E OF THE ASSESSEE. 3. THE LEARNED FIRST APPELLATE AUTHORITY UPHELD THE STAND OF LD.AO, AGAINST WHICH THE ASSESSEE IS UNDER APPEAL BEFORE U S. THE PLEA RAISED BY 3 ITA NO.4991/MUM/2018 A.Y.2014-15 MASTER HOMES THE ASSESSEE, DURING APPELLATE PROCEEDINGS, THAT TH E MATTER OF VALUATION SHOULD HAVE BEEN REFERRED TO DVO WAS REJECTED SINCE THE SAID PLEA WAS NOT RAISED BEFORE LEARNED AO. 4. WE HAVE HEARD AND CONSIDERED THE RIVAL SUBMISSIO NS. 5. ON THE GIVEN FACTS AND CIRCUMSTANCES, IT TRANSPI RES THAT THE ADDITIONS HAVE BEEN MADE MERELY BY INVOKING THE PROVISIONS OF SECTION 43CA WHEREAS THE ASSESSEE HAS SUBMITTED THAT THE VALUE R EFLECTED IN THE BOOKS WAS ACTUAL SALE CONSIDERATION AND NOTHING MORE WAS RECEIVED OVER AND ABOVE THE REFLECTED VALUES. THEREFORE, AFTER DUE CO NSIDERATION, THE MATTER STAND REMITTED BACK TO THE FILE OF LEARNED AO FOR A DJUDICATION DE NOVO, INTER- ALIA, AFTER REFERRING THE MATTER OF VALUATION TO DVO. 6. THE APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH SEPTEMBER, 2019. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 16/09/2019 SR.PS:-JAISY VARGHESE #$ %$ / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &'#% / THE RESPONDENT 4 ITA NO.4991/MUM/2018 A.Y.2014-15 MASTER HOMES 3. . ( ) / THE CIT(A) 4. . / CIT CONCERNED 5. /0 &)1 , 1 , / DR, ITAT, MUMBAI 6. 0234 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.