Vootkuri Muthyalugoud, R.R.Dist, R.R.Dist V. ITO, Ward-8(3), Hyderabad, Hyderabad

ITA 518/HYD/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3399 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 07-04-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 20-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Capital asset; Additional evidence; Fair market value
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 518 /HYD./201 7 ASSESSMENT YEAR : 20 09 - 10 SHRI VOOTKURI MUTHYALU GOUD VS. ITO, WARD - 8 (3) HYDERABAD HYDERABAD [PAN: ADZPV0842K ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI S. RAMA RAO, ADV. FOR REVENUE: SHRI ROHIT MUJUMDAR , CIT, D.R. DATE OF HEARING : 07/04/2021 DATE OF PRONOUNCEMENT : 11 /06/2021 O R D E R PER S.S. GODARA, J.M. THIS ASESSEES APPEAL FOR AY 20 09 - 10 ARISES FROM CIT(A) - 1 0 HYDERABADS ORDER DATED 31.08.2016 PASSED IN CASE NO. 69 /201 5 - 16 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 FOR SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ITA NO. 518/HYD/2017 AY 2009 - 10 SRI VOOTKURI MUTHYALU GOUD 2 ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL. 1. THE ORDER OF THE LD.CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD.CIT(A) ERRED IN DECIDING THE APPEAL WITHOUT PROVIDING FURTHER OPPORTUNITY TO THE APPELLANT. 3. THE LD.CIT(A) ERRED IN LAW IN CONFIRMING THE MARKET VALUE AS ON 14.1982 OF THE PROPERTY ACQUIRED AT RS1/ - PER SQ.YARD AS AGAINST RS.130/ - PER SQ.YARD A DOPTED BY THE APPELLANT. 4. THE LD.CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE LAND IN KEESARA VILLAGE AND MANDAL IS NEARER TO ECIL AND OTHER INDUSTRIAL AREAS OF GHATKESAR MANDAL. 5. THE LD.CIT(A) OUGHT TO HAVE CONSIDERED THE COST OF IMPROVEMENT CL AIMED BY THE APPELLANT OF RS.15,45,000/ - . 6. THE LD.CIT(A) OUGHT TO HAVE SEEN THAT WHILE CONVERTING AGRICULTURAL LAND INTO HOUSE SITES, THE APPELLANT HAD UNDERTAKEN SURVEY OF LAND, PREPARATION OF LAY OUT, LAYING OF ROADS AND OTHER AMENITIES WERE PROVIDED TO FACILITATE THE SALE OF THE PLOTS AND, THEREFORE THE AO IS NOT JUSTIFIED IN DISALLOWING COST OF IMPROVEMENTS CLAIMED BY APPELLANT. 7. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLE ADINGS. IT TRANSPIRES AT THE OUTSET THAT THE CIT(A)S LOWER APPELLATE ORDER UNDER CHALLENGE CONFIRMING ASSESSING OFFICERS ACTION ON BOTH COUNTS QUA FAIR MARKET VALUE OF THE CAPITAL ASSET IN QUESTION AS WELL AS DISALLOWANCE OF COST OF IMPROVEMENTS (SUP RA) ; HAS BEEN PASSED EX PARTY. THERE IS FURTHER NO INDICATION IN PARA 4 OF THE LOWER APPELLATE ORDER AS TO WHETHER THE ASSESSEE HAS BEEN SERVED THE RELEVANT HEARING NOTICE ( S ) BEFORE THE LAST DATE I.E. 13.7.2016. COUPLED WITH THIS, LEARNED AUTHORIZ ED REPRESENTATIVE INVITED OUR ATTENTION TO THE ASSESSEES ADDITIONAL EVIDENCE IN PAGES 1 TO 4 INTER - ALIA CONTAINING DETAILS OF PROCEEDINGS OF BOARD RESOLUTION ON LEGAL SERVICES ITA NO. 518/HYD/2017 AY 2009 - 10 SRI VOOTKURI MUTHYALU GOUD 3 REGARDING THE LAND IN ISSUE AS WELL AS APPLICATION RELATING TO MARKET VA LUE OF THE IMMOVABLE PROPERTY PRIMA FACIE GOING TO ROOT OF THE MATTER ; BUT , COULD NOT BE PLACED ON RECORD EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE CIT(A). WE MAKE IT CLEAR THAT THE FOREGOING ADDITIONAL EVIDENCE RELEVANCE PER SE HAS ALSO N OT BEEN DISPUTED AT R EVENUES BEHEST AS WELL . FACED WITH THIS SITUATION, WE DEEM IT FIT AND PROPER TO RESTORE ASSESSEES TWIN SUBSTANTIVE GRIEVANCES BACK TO THE CIT(A) FOR A FRESH AND PROPER ADJUDICATION AS PER LAW WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. THE A SSESSEE OR HI S AUTHORIZED REPRESENTATIVE SHALL APPEAR BEFORE THE CIT(A) ON OR BEFORE 30/09/2021 ALONG WITH ALL THE RELEVANT EVIDENCE ( S ) ; TO BE PUT TO VERIFICATION WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING . THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 11 TH JUNE, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 11 TH JUNE, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. SRI VOOTKURI MUTH Y ALU GOUD, 2 - 24/2, AHMED NAGAR, KEESARA MANDAL, R . R . DT. 500 078 . 2. ITO, WARD - 8 (3), HYDERABAD . 3. ACIT, RANGE 8 , HYDERABAD. 4. CIT(A) - 10 , HYDERABAD 5. PR.CIT - , HYDERABAD 6 . DR, ITAT, HYDERABAD. 7 . GUARD FILE. ITA NO. 518/HYD/2017 AY 2009 - 10 SRI VOOTKURI MUTHYALU GOUD 4