Shri Vijay Kumar Jain, Indore V. The Asstt. Commissioner of Income tax 2(1), Indore

ITA 502/IND/2013

• Counselvise Citation: 50222714 RSA 2013
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 28-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE; SANDEEP DESHPANDE

Judgement Text

VINAY KUMAR JAIN ITA NO. 502/IND/2013 1 IN THE INCOME TAX APPELLATE TRIBUNA L INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 502/IND/2013 A.Y.2007-08 VIJAY KUMAR JAIN INDORE PAN ABIPJ 0378B ::: APPELLANT VS ASSTT.COMMR. OF INCOME TAX 2(1) INDORE ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE AND SHRI SANDEEP DESHPANDE RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 28 .7.2015 DATE OF PRONOUNCEMENT 1 7 . 8 .2015 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A)-7, MUMBAI , HAVING VINAY KUMAR JAIN ITA NO. 502/IND/2013 2 CONCURRENT JURISDICTION OVER THE CHARGE OF CIT(A)-I, INDORE, DATED 11.3.2013. 2. THE ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM HOUSE PROPERTY, INTEREST, PROFIT ON SALE OF PROPERTY , ETC. THE RETURN OF INCOME WAS FILED DECLARING INCOME AT RS.1,50,35,890/- WHICH INCLUDED CAPITAL GAIN OF RS.1,41,72,588/-. THE ASSESSEE WAS RUNNING A HOTEL AT SHIRDI WHICH WAS SOLD FOR A CONSIDERATION OF RS. 1,71,00,000/-. THE ASSESSEE BIFURCATED THE SALE INTO T WO PARTES (I) FOR THE BUILDING, PLANT AND MACHINERY AND FURNITURE AND (II) FOR LAND. THE VALUE FOR BUILDING, P LANT, MACHINERY AND FURNITURE WAS DETERMINED AT RS. 91 LACS AND FOR LAND AT RS.80 LACS. THE CAPITAL GAIN WAS COMPUTED AS UNDER :- VINAY KUMAR JAIN ITA NO. 502/IND/2013 3 SALE CONSIDERATION RS. WDV RS. CAPITAL GAINS SALE OF MACHINERY AND PLANT 5,00,000 3,97,737 1,06,263 SALE OF FURNITURE 5,00,000 3,22,425 1,77,571 SALE OF BUILDING 81,00,0001 18,15,387 62,84,613 SALE OF LAND 80,0 0 ,000 72,81,900 THE STAMP DUTY AUTHORITY VALUED THE CONSIDERATION AT RS.1,88,00,000/-. DURING THE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER REFERRED THE MATTER TO THE DVO. HE VALUED THE TOTAL LAND AND BUILDING AT RS.1,75,900/- CONSISTING THE VALUE FOR BUILDING, PLANT AND MACHINERY AND FURNITURE AT RS.1,29,59,000/- AND VALUE FOR LAND AT RS.46,05,000/-. THE ASSESSING OFFICER MADE THE ORDER ACCORDINGLY AND MADE AN ADDITION OF RS.19,71,168/- U/S 41(2) OF THE AC T AND CALCULATED RS.84,53,273/- AS SHORT TERM CAPITAL GAINS AND RS.38,86,208/- AS LONG TERM CAPITAL GAIN. THE LEARNED CIT(A) MAINTAINED THE VALUE AT RS.1,75,64,900/-. HOWEVE R, VINAY KUMAR JAIN ITA NO. 502/IND/2013 4 HE INCREASED THE RATIO OF LAND VALUE BY ADOPTING THE RATE AT RS.5000/- PER SQ. MTR. INSTEAD OF RS.3684/- ADOPTED BY DVO. THUS, HE REDUCED THE SHORT TERM CAPITAL GAIN OF T HE ASSESSEE BUT DID NOT ALLOW RELIEF TOWARDS VALUE OF LAND. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT SHIRDI IS A VERY SMALL PLACE AND THE VALUATION DONE BY TH E ASSESSING OFFICER FOR BUILDING IS EXCESSIVE. THE ASS ESSEE HAS RECEIVED ONLY RS. 1,71,00,000/-. HE PLEADED THAT T HE LAND RATE ADOPTED BY THE LEARNED CIT(A) AT RS. 5000/- WAS ON LOWER SIDE WHICH SHOULD HAVE BEEN AT LEAST RS.6400/ - PER SQ. MTR. HE PLEADED TO GRANT RELIEF TO THE ASSESSEE AS PRAYED FOR IN THE APPEAL. THE LD. DR PLEADED TO SET ASI DE THE ORDER OF LEARNED CIT(A) AND CONFIRM THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE HEARD BOTH THE SIDES. AFTER HEARING WE HOLD THAT AFTER CONSIDERING THE LOCATION OF THE BUILDING AT A SMALL PLACE LIKE SHIRDI, THE OVERALL VALUATION OF THE PROPERT Y VINAY KUMAR JAIN ITA NO. 502/IND/2013 5 SHOULD BE TAKEN AT RS. 1,71,00,000/- AS DECLARED BY TH E ASSESSEE. THIS GIVES REDUCTION OF RS.4,64,900/- IN TOTAL VALUE TO BE ADOPTED. THIS BENEFIT OF REDUCTION IN VALU E IS CONSIDERED IN VIEW OF THE FACT THAT BUILDING WAS SITUAT ED AT A SMALL PLACE LIKE SHIRDI. WE FIND NO MERIT IN OTHER PLEADINGS OF THE ASSESSEE AND WE ARE SUSTAINING OTHER FINDINGS OF LEARNED CIT(A). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS PAR TLY ALLOWED. PRONOUNCED IN OPEN COURT ON 17 TH AUGUST, 2015 SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER 17 TH AUGUST, 2015 DN/-