Assistant Commissioner of Income Tax 1(1), Indore, Indore V. Shri Randhir Gawade, Indore

ITA 538/Ind/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5089 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-01-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 26-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V J BORICHA
• Assessee Lawyers: S S SOLANKI
• Section: 143(3); 54F

Judgement Text

[ITA NO.538/IND/2017] [SHRI RANDHIR GAWADE, INDORE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.538/IND/2017 ASSESSMENT YEAR: 2013-14 ACIT - 1(1) INDORE / VS. SHRI RANDHIR GAWADE 11/5, SOUTH TUKOGANJ INDORE (MP) ( APPELLANT ) ( REVENUE ) P.A. NO. ACKPG1705C APPELLANT BY SHRI V.J. BORICHA, SR.D.R. RESPONDENT BY SHRI S.S. SOLANKI, A.R. DATE OF HEARING: 21.01.2019 DATE OF PRONOUNCEMENT: 07.02.2019 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST ORDER OF THE CIT(A)-3, INDORE DATED 19.5.2017 PERTAINING TO T HE [ITA NO.538/IND/2017] [SHRI RANDHIR GAWADE, INDORE] 2 ASSESSMENT YEAR 2013-14. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, LD. CIT(A)-III INDORE HAS ERRED IN LAW BY DELETING THE ADDITION OF RS.1,31,00,044/- MADE BY THE A.O. ON ACCOUNT OF DISALLOWANCE OF EXEMPTION CLAIMED U/S 54F. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, LD. CIT(A)-III, INDORE WAS JUSTIFIED IN DELETING THE ADDITION BY IG NORING THE FINDING OF THE A.O. THAT THE ASSESSEE FAILED TO PROVIDE DETAILS OF UTILIZATION OF AMOUNT WITHDRAWN FROM CAPITAL GAIN SHEME FUND AS PRESCRIBE D UNDER CAPITAL GAIN ACCOUNT SCHEME, 1988. 3. THE APPELLANT RESERVES THE RIGHT TO ADD, AMEND OR A LTER THE GROUND OF APPEAL ON OR BEFORE THE DATE OF APPEAL IS FINALLY H EARD FOR DISPOSAL. 2. BRIEFLY STATED FACTS ARE THAT CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT. THE ASSESSMENT U /S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLE D AS THE ACT) WAS FRAMED VIDE ORDER DATED 30.3.2016. THE A.O. WHILE FRAMING THE ASSESSMENT, OBSERVED THAT DURING THE YEAR UNDER CONSIDERATION, ASSESSEE HAD SOLD IMMOVABLE PROPERTY SITUATED AT 11/5, SOUTH TUKOGANJ, INDORE ADMEASURING 5304 SQ.FT. OR 492.93 SQ.MTRS., AS SHOWN IN THE SALE DEED TO SHRI RAMESH MODI & SMT. REKHA MODI. THE PROPERTY WAS CLAIMED TO BE SOLD AT RS.2,75,00,000/ -. [ITA NO.538/IND/2017] [SHRI RANDHIR GAWADE, INDORE] 3 OUT OF TOTAL SALE CONSIDERATION OF RS.2,75,00,000/-, RS.55,00,000/- WAS CLAIMED TO BE BELONGED TO SHRI ANI L GAWADE (HUF). THE ASSESSEE OFFERED LONG TERM CAPITAL GAIN OF RS.31,90,952/- AND CLAIMED EXEMPTION U/S 54F OF TH E ACT OF RS.1,31,00,044/-. THE A.O. FURTHER OBSERVED THAT THE MARKET VALUE OF THE PROPERTY WAS AT RS.4,01,77,000/ - AS PER STAMP VALUATION AUTHORITY. THE A.O. THEREFORE M ADE ADDITION OF RS.1,26,77,000/-. FURTHER, THE A.O. ALSO MADE DISALLOWANCE OF EXEMPTION CLAIMED U/S 54F OF THE ACT OF RS.1,31,00,044/- AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. FURTHER, THE A.O. DISALLOWED CLAIM OF DEDUC TION UNDER CHAPTER VI-A OF RS.1,01,127/-. THUS, THE A.O. COMPUTED TAXABLE INCOME AT RS.2,92,55,601/-. 3. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISS IONS PARTLY ALLOWED THE APPEAL, THEREBY THE LD. CIT(A) ADOPTE D THE MARKET VALUE OF THE PROPERTY AT RS.2,96,48,000/- A S PER [ITA NO.538/IND/2017] [SHRI RANDHIR GAWADE, INDORE] 4 THE DVO'S REPORT. FURTHER, THE LD. CIT(A) ALLOWED EXEMPTION U/S 54F OF THE ACT AND CLAIM OF DEDUCTION U NDER CHAPTER VI-A. 4. AGGRIEVED BY THIS, THE REVENUE IS IN APPEAL. THE ONLY EFFECTIVE GROUND IS AGAINST ALLOWING THE CLAIM OF DEDUC TION U/S 54F OF THE ACT OF RS.1,31,00,044/-. LD. D.R. S UPPORTED THE ORDER OF THE A.O. AND SUBMITTED THAT LD. CIT(A) I S NOT JUSTIFIED IN DELETING THE ADDITIONS. 5. ON THE CONTRARY, LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS AND SUBMITTED THAT THERE IS NO INFIRMITY IN TO THE ORDER OF THE LD. CIT(A). THE LD. CIT(A) HAS ADOP TED THE MARKET VALUE AS PER THE DVO'S REPORT AND FURTHER, THE ASSESSEE HAD SINCE FULFILLED ALL THE CONDITIONS FOR ENTITLEMENT OF DEDUCTION U/S 54F OF THE ACT. [ITA NO.538/IND/2017] [SHRI RANDHIR GAWADE, INDORE] 5 6. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORDS AND GONE THROUGH THE ORDER S OF THE AUTHORITIES BELOW. WE FIND THAT THE LD. CIT(A ) HAS ADOPTED THE MARKET VALUE AS PER THE DVO'S REPORT. THE REVENUE HAS NOT BROUGHT ANY OTHER MATERIAL EXCEPT THE VALUATION MADE BY THE STAMP VALUATION AUTHORITY. IT IS AL SO NOT STATED AS TO HOW THE DVO'S REPORT IS NOT CORRECT. UNDER THESE FACTS, WE DO NOT SEE ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) TO ADOPT THE MARKET VALUE AS PER THE DVO'S REPORT. FURTHER, LD. CIT(A) HAS ALLOWED DEDUCTION U/ S 54F OF THE ACT. AS THE ASSESSEE IN ACCORDANCE WITH THE PROVISIONS OF SECTION 54F OF THE ACT AMOUNT WAS DEPOS ITED IN THE CAPITAL GAIN ACCOUNT AND SO UTILIZED THERE FROM WITHIN THE TIME FRAME AS PRESCRIBED UNDER THE LAW, TH E GROUNDS RAISED BY THE REVENUE ARE DEVOID OF MERIT. H ENCE, WE REJECT THE SAME. [ITA NO.538/IND/2017] [SHRI RANDHIR GAWADE, INDORE] 6 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 07 . 02.2019. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIALMEMBER INDORE; DATED : 07/02/2019 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE