I.T.O. Ward -3(1), RAIPUR V. SHRI MEGHRAJ PRAJAPATI, RAIPUR

ITA 50/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8960 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Cost of acquisition
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.50/RPR/2015 ASSESSMENT YEAR : 2009-2010 INCOME TAX OFFICER, WARD 2(3), AAYAKAR BHAVAN, CENTRAL REVENUE BUILDING, CIVIL LINES, RAIPUR VS. MEGHARAJ PRAJAPATI, 14/1424, HOUSE, NEW SHANTI NAGAR, RAIPUR PAN/GIR NO. AEQPP 5658 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI AJIT KUMAR LASKAR, DR DATE OF HEARING : 18/01/ 2018 DATE OF PRONOUNCEMENT : 18 /01/ 2018 O R D E R PER PAVAN KUMAR GADALE, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE O RDER OF THE CIT(A)- RAIPUR, DATED 22.1.2015 FOR THE ASSESSMENT YEAR 2009- 2010. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APP EAL: WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS WAS JUSTIFIED IN HOLDING THAT THE ESTIMATED FAIR MA RKET VALUE OF THE PROPERTY WAS RS.90,57,200/- (HALF SHARE IN THE CASE OF THE ASSESSEE I.E AT RS.45,28,600/-) FOR THE PURPOSE OF CALCULAT ION OF DEEMED CAPITAL GAIN U/S. 50C OF THE INCOME TAX ACT, 196 1 WHEREAS THE ASSESSEE HAS PAID STAMP DUTIES OF RS.172,71 LAKH S AS REVALUED BY THE REGISTERING AUTHORITIES. 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDI VIDUAL DERIVING INCOME FROM CIVIL CONTRACT WORK AND INTEREST INCOME. TH E ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS SOLD IMMOVABLE PROPERTY VALUE D AT RS.66,50,000/-. AGAINST TOTAL LAND OF 0.380 HECTARE SOL D JOINTLY WITH SHRI CHAMPALAL PRAJAPATI ON 22.10.2008. THE DY. REGISTR AR HAD ADOPTED THE VALUE OF THE PROPERTY AT RS.1,72,71,000/- AS PER NORM S OF THE STATE GOVERNMENT AND THAT AS PER THE PROVISIONS OF SUB-SECTI ON (1) OF SECTION 50C OF THE ACT. SINCE THE ASSESSEE HAS NOT DISPUTED BEFORE THE STATE GOVERNMENT, THE ASSESSING OFFICER HAS TAKEN VALUE OF SALE CONSIDERATION AT SHARE OF RS.1,72,71,000/- AND AFTER ALLOWING INDEX ED COST OF ACQUISITION DETERMINED THE TAXABLE LONG TERM CAPITAL GAIN AT RS.8 5,16,365/-. 4. ON APPEAL, THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE. 5. AT THE TIME OF HEARING, LD D.R. SUBMITTED THAT TH E ASSESSEE HAS PAID STAMP DUTY ON RS.172.71 LAKHS AS REVALUED BY THE REGIS TERING AUTHORITIES. HENCE, THE ASSESSING OFFICER WAS JUSTIFIED IN TREATING THE SALE CONSIDERATION OF RS.86,35,500/- AND THE CIT(A) ERRED IN ADOPTING RS.45,28,600/- FOR THE PURPOSE OF CALCULATION OF DEEMED CAPITAL GAIN U/S. 50C O F THE ACT. 6. WE HAVE HEARD THE SUBMISSION OF LD D.R, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. WE FI ND THAT SIMILAR ISSUE HAD COME UP FOR CONSIDERATION IN THE CASE OF SHRI CHAMPALA L PRAJAPATI IN ITA 3 NO.370/RPR/2014, WHO WAS THE CO-OWNER OF THE PROPERTY AND WAS PAID 50% OF THE CONSIDERATION. IN OUR ORDER OF EVEN DATE, WE HAVE RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE ISSUE A FRESH AS PER LAW. IN VIEW OF ABOVE, WE DEEMFIT IT PROPER TO REMIT THE MA TTER BACK TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE DISPUTED ISSUE AFRESH AS PER LAW AND AFTER GIVING OPPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT, APPEAL FILED BY THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 18 /01/2018. SD/- SD/- (N.S SAINI) ( PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIALMEMBER RAIPUR; DATED 18 /01/2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, RAIPUR 1. THE APPELLANT : INCOME TAX OFFICER, WARD 2(3), AAYAKAR BHAVAN, CENTRAL REVENUE BUILDING, CIVIL LINES, RAIPUR 2. THE RESPONDENT : MEGHARAJ PRAJAPATI, 14/1424, HOUSE, NEW SHANTI NAGAR, RAIPUR 3. THE CIT(A)- RAIPUR 4. PR.CIT- RAIPUR 5. DR, ITAT, RAIPUR 6. GUARD FILE. //TRUE COPY//