ITO 24(2)(3), MUMBAI V. VINOD PRANLAL AVLANI, MUMBAI

ITA 5193/MUM/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9153 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2015
• Appeal Filed By: Department
• Bench Allotted: F
• Next Hearing Date: 25-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 16-08-2012
• Court: TRIBUNAL
• Department Lawyers: IN CIRCUMSTANCES OF CA SE
• Keywords: Sale consideration of property below Jantri Value; Rectification of order; Additional evidence
• Section: 50C; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER AND SHRI N.K. BILLAIYA , ACCOUNTANT MEMBER ITA NO. 5193 /MUM/201 2 ASSESSMENT YEAR: - 2008 - 09 THE INCOME TAX OFFICER 24(2)(3), ROOM NO. 603, 6 TH FLOOR, PRATYAKSHKAR BHAVAN, B.K.C. BANDRA MUMBAI 400 051. VS.` SHRI VINOD PRANLAL AVLANI, C - 301, SADGURU DARSHAN, LIBERTY GARDEN ABOVE ICICI BANK, MALAD (W) MUMBAI 400 064. APPELLANT RESPONDENT ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 13.06.2012 OF CIT(A) FOR A.Y. 2008 - 09. THE REVENUE HAS RAISED FOLLOWING GROUNDS: - I) 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN ACCEPTING THE ADDITIONAL EVIDENCE IN THE FORM OF THE DEED OF PURCHASE AND PROOF OF ASSET BEING LONG - TERM WHICH WAS NOT PRODUCED BEFORE THE A.O. DURING THE COURSE OF ASSESSMENT PROCEEDINGS DESPITE SEVERAL OPPORTUNITIES'. II) 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN TAKING INTO ACCOUNT THE ADDITIONAL EVIDENCE WITHOUT CONFRONTING THE A.O. WITH TH E SAID EVIDENCES OR SEEKING REMAND REPORT FROM THE A.O. IN VIEW OF RULE 46A(3) OF THE INCOME - TAX RULES, 1962'. REVENUE BY SHRI PAWAN KUMAR BIRLA ASSESSEE BY SHRI MANISH J. SHETH DATE OF HEARING 25.02.2015 DATE OF PRONOUNCEMENT 25 .03.2015 ITA NO. 5193/MUM/2012 ASSESSMENT YEAR: - 2008 - 09 2 | P A G E 2. THE ASSESSEE PURCHASED 1648 YARD OF LAND ALONG WITH STRUCTURE AT CHIN CH CHOLI, BUNDER ROAD, MALAD (W) ALONG WITH ONE SHRI ABDUL RAB ABDULO KALA M KHAN AS A CO - OWNER FOR A CONSIDERATION OF RS. 1,10,000/ - . THE PROPERTY WAS OCCUPIED BY THE DIFFERENT TENANT AT THE TIME OF PURCHASE , THE ASSESSEE RELEASED HIS RIGHTS AND INTEREST IN THE SAID PROPERTY IN FAVOUR OF THE CO - OWNER FOR A CONSIDERATION OF RS. 9 , VIDE RELEASE DEED DATED 10.07.2007 BETWEEN THE ASSESSEE AND CO - OWNER. HOWEVER, AS PER THE STAMP DUTY VALUATION, THE MARKET VALUE OF THE PROPERTY VALUED AT RS. 80,64,750/ - . THE AO APPLIED THE PROVISIONS OF SECTION 50C AND ADOPTED THE FULL VALUE OF CONS IDERATION OF THE PROPERTY AT RS. 1 CRORE. THE ASSESSEE CHALLENGED THE ACTION OF AO BEFORE THE CIT(A) AND SUBMITTED THAT THE STAMP DUTY VALUE AUTHORITY HAS VALUED THE PROPERTY AT RS. 80,64,750 AND THE AO HAS ADOPTED THE FULL VALUE OF THE CONSIDERATION OF PR OPERTY AT RS. 1 CRORE, WHICH IS BASELESS. THE CIT(A) DIRECTED THE AO TO WORK OUT THE LONG TERM CAPITAL GAIN ON A CONSIDERATION OF RS. 80,64,750/ - . 3. THE GRIEVANCE OF THE REVENUE IS REGARDING THE DIRECTION ISSUED BY THE CIT(A) FOR CONSIDERING THE SALE CONSIDERATION AT RS. 80,64,750/ - AS PER THE STAMP VALUATION AUTHORITY. 4. WE HAVE HEARD THE LD. DR AS WELL AS LD. AR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET, THE LD. AR HAS POINTED OUT WHILE PASSING THE RECTIFICATION ORDER U/S 154 OF THE ACT, THE AO HAS ACCEPTED THE CORRECT MARKET VALUE OF THE PROPERTY AT R S. 80,64,750/ - AND ACCORDINGLY RECTIFIED THE MISTAKE. WE NOTE THAT VIDE ORDER DATED ITA NO. 5193/MUM/2012 ASSESSMENT YEAR: - 2008 - 09 3 | P A G E 17.02.2011 , PASSED U/S 154 OF THE INCOME TAX ACT, THE AO HAS ACCEPTED THE VALUE OF THE PROPERTY IN QUESTION AT RS. 80,64,750/ - BEING THE VALUE ADOPTED BY THE STAMP DUTY VA LUATION AUTHORITY. ACCORDINGLY, IN VIEW OF THE ORDER DATED 17.02.2011 PASSED U/S 154 OF THE INCOME TAX ACT, THE APPEAL OF THE REVENUE BECOMES INFRUCTUOUS. 5 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUCNED IN THE OPEN COURT O N THIS 25 TH DAY OF MARCH 2015 SD/ - SD/ - ( N.K. BILLAIYA ) (VIJAY PAL RAO) ( ACCOUNTANT MEMBER ) (JUDICIAL MEMBER ) MUMBAI DATED 25 .03.2015 SKS SR. P.S, COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI