Smt.Vijayakumari Chathoth, Cochin V. The ITO, Cochin

ITA 54/COCH/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96720 (ITAT-COCHIN)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 17-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 19-01-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: PAUL SEBASTIAN
• Keywords: Fair market value
• Section: 54

Judgement Text

ITA NO. 54/COCH/2015 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BEFORE S/SH RI B P JAIN , A M & GEORGE GEORGE.K , JM ITA NO . 54/COCH/2015 (ASST YEAR 21009 - 10 ) SMT VIJAYAKUMARI CHATHOTH CHATJHOTH VOIAUAVOJAR PADIOVATTON EDAPALLY PO KOCHI VS THE INCOME TAX OFFIC ER WARD 2(1), KOCHI ( APP ELLANT ) (RESPONDENT) PAN NO. AKHPC9060D ASSESSEE BY SH PAUL SEBASTIAN REVENUE BY SH K P GOPAKUMAR, SR DR DATE OF HEARING 17 TH SEPT 2015 DATE OF PRONOUNCEMENT 21 ST SEPT 2015 OR D ER PER GEORGE GEORGE.K JM : TH IS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE CIT(A)S ORDER DATED 30,9.2014. THE RELEVANT ASSESSMENT YEAR IS 2009 - 10. 2 THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER FOR THE PURPOSE OF COMPUTATION LONG TERM CAPITAL GAIN WHAT SHOULD BE THE FAIR MARKET VALUE AS ON 1.4.1981. 3 THE BRIEFLY STATED FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE IS AN INDIVIDUAL. THE RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR WAS FILED ON 7.7.2010 DECLARING A TOTAL INCOME OF RS. 1 0,83,560/ - WHICH ITA NO. 54/COCH/2015 2 INCLUDED LONG CAPITAL GAIN OF RS. 8,56,450/ - . THE ASSESSEE SOLD THE LAND DURING RELEVANT YEAR FOR A CONSIDERATION OF RS. 1,64,85,000/ - . T HE CAPITAL GAIN WAS COMPUTED ON THE SALE OF THE SAID PROPERTY BY TAKING FAIR MARKET VALUE (FMV) AS ON 1.4.1981 AT RS. 2,25,000/ - PER CENT. THE FMV AS ON 1.4.1981 WAS ADOPTED BY THE ASSESSEE , ON THE BASIS OF THE REPORT OF THE APPROVED VALUER, WHO HAD TAKEN THE FMV OF THE SAID PROPERTY AS ON 1.4.1981 AT RS. 2,25,000/ - PER CENT. THE ASSESSMENT WAS TAKE N UP FOR SCRUTINY AND THE AO, IN THE COURSE OF SCRUTINY ASSESSMENT CONDUCTED ENQUIRIES WITH THE SUB REGISTRAR A T EDAPALLY AND ADOPTED RS. 20 ,000/ - PER CENT AS THE FMV AS ON 1.4.1981. 4 AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE FIRST APPELLAT E AUTHORITY. THE CIT(A) CONFIRMED THE ASSESSMENT AND DISMISS THE APPEAL OF THE ASSESSEE. THE RELEVANT FINDINGS OF THE CIT(A) READ AS UNDER: 4 . ALL THE GROUNDS RELATE TO ONLY ONE ISSUE OF ADOPTING THE MARKET VALUE OF PROPERTY AS ON 1 . 4 . 1981 FOR THE PURPOSE OF COMPUTING CAPITAL GA I N . 4.1. THE ASSESSING OFFICER HAS ADOPTED A VALUE OF RS. 20 , 000/ - PER CENT FOR THE LAND AFTER MAKING ENQUIRIES FROM THE SUB REGISTRAR OFFICE , EDAPALLY OBSERV I NG AS THE FOLLOWING: - ' IN RESPECT OF THE FAIR MARKET VALUE AS ON 1 . 4 . 8 1 CLAIMED , ENQU I RIES WITH SUB REGISTRAR OFFICE , EDAPPAL/Y REVEALED THAT THE SALE IN THA T SURVEY NO . THAT TOOK PLACE AT A MUCH LATER PERIOD VIZ 1990 SHO W ED VALUE OF R S . 20 , 0 00/ - PER CENT ONLY . HENCE A LETTER WAS ISSUED TO THE ASSES S EE A S UNDER:. 'IT IS NO T IC ED T HAT YOU HAVE CLAIMED RS. 2 .15 LAKH PER CENT AS FAIR MARKET VAL UE AS ON 1 . 4.1981 BASED O N A VALUATION R EPORT FIELD BY YOU DATED 30 - 05 - 2009 BY S RI . T . BABU RAJ , CHIEF E NGINEER ( RETIRED) ITA NO. 54/COCH/2015 3 TO THE G OVERN MEN T OF K E RALA. IN THIS RESPECT IT IS NO TICED THAT THIS VALUE IS VERY H I GH , AS T H E RECORDS AND SUB REGI S TRY O FFICE, E DAPAL/Y SHOW THAT THE FAIR M A R KET VALUE IN SURVEY UMBER 140/13 DURING THE PERIOD 21 - 07 - 1990 , WHICH IS A LATER PERIOD , IS AROUND R S . 20 , 000/ - PER CENT AS FAIR MARK E T V A LU E AS O N 01 - 04 - 1981 A ND C OMPUTE THE CAPITAL GAIN ACCORDINGLY' . 4.2. THE ASSESSEE DUR I NG T H E COU R SE O F APPE LLATE P ROC EED ING S S UBMI T T E D THA T THE VALUE ADOPTE D B Y TH E A SSESS IN G O FFI C ER IS VERY L O W A ND IN THIS CONNECT I ON THE ASSESSEE H A S E MPH AS I ZED THA T N O PR O P ERT Y R EG I S TRATI O N H AS T AK EN PLACE IN KERA L A BE L O W R S . 2 , 50 , 000 / - PE R C E NT F O R W HI C H V A LU A TI O N REPORT OF AN EXPERT WHICH WAS FU R NISHED BEFORE T H E ASSE S S ING OF FI CE R A S A L SO VA LU ATION REPORT BY RE TIR E D C HIEF E N G IN EE R TO GOVE RNM EN T O F I NDIA S H O WING THE VALUE AS ON 1 . 4 . 198 1 AS R S. 2 , 15 , 000/ - PER CEN T WAS ALSO FU R NISHE D . HOWEVER , WHEN THE ASSESSEE CONF R ONTED W I TH THE VALUE G I VE N BY T H E SU B REG I STRAR OFFICE , EDAPPALLY HE R EQUESTED FOR ADJOURNMENT AND ASKED FOR SOME TIME FOR FILING ANOTHER REGISTERED SALE DEED OF THE SAME AREA IN TH E SAME TIME SO THAT THE VALUE COULD BE COMPARED WITH REFERENCE TO A COMPARABLE PROPERTY IN THE AREA . THE CASE WAS AD J OURNED TO 29 . 9 . 2014 . HOWEVER , ON THIS DATE , THE ASSESSEE DID NOT ATTEND THE PROCEEDINGS AND NO REGISTERED SALE DEED IN SUPPORT OF VALUE OF LAND AS ON 1 . 4.1981 IN THE SAME AREA DURING THE SAME TIME COULD BE FURNISHED . 4.3 . DURING THE COURSE OF APPELLATE PROCEEDINGS THE ASSESSEE ALSO R E LI ED ON THE DECISION OF ITAT , CHENNA I IN THE CASE OF USHA RAMESH , CHENNA I VS . ITO . HOWEVER , THE FACTS OF TH E CASE ARE DISTINGU I SHABLE AND HENCE THE ASSESSING OFFICER WHO HAS TAKEN THE VALUE OF LAND AS O N 1 . 4 . 1981 ON THE BAS I S O F INFORMA T ION PROV I DED BY THE SUB REG I S TR A R, EDAPA LLY I S A REASONA BLE VALUE . ACCORDINGLY. THE ASSESSING OFFICER'S STAND OF ADOPTING TH E VALUE OF RS. 20,000/ - PER CENT AS FAIR MARKET VALUE AS ON 1.4.1981 FOR THE PURPOSE OF COMPUT ATION OF CAPITA L GAINS AND D E DUCT I ON U L S 5 4 IS HEREBY UPHELD. 5 THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE LD A R REITERATED HIS SUBMISSIONS MADE BEFORE THE INCOME TAX AUTHORITIES. 6 THE LD DR ON THE OTHER HAND SUBMITTED THAT THE FMV AS ON 1.4.1981 WAS FIXED AT RS. 20,000/ - AFTER MAKING NECESSARY ENQUIRIES WITH THE SUB REGISTRARS ITA NO. 54/COCH/2015 4 OFFICE AT EDAPALLY AND HENCE, THE CIT(A)S ORDER , CONFIRMING THE ASSESSMENT ORDER , DOES NOT REQUIRE ANY INTERFERENCE BY THE TRIBUNAL , ESPECIALLY WHEN NO CONTRA EVIDEN CE WAS PRODUCED BY THE ASSESSEE . 7 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. IN THE INSTANT CASE, THE FMV AS ON 1.4.1981 WAS ADOPTED AT RS. 20,000/ - BY THE AO AFTER MAKING NECESSARY ENQUIRIES WITH THE SUB REGISTRAR, EDAPALLY. THE SUB REGISTRAR HAD STATED THAT CONSIDERATION DISCLOSED IN SALE DEED REGISTERED FOR IDENTICAL SURVEY NUMBERS WAS ONLY RS. 20,000/ - PER CENT IN THE YE AR 1990. EVEN BEFORE US, THE ASSESSEE HAS NOT PRODUCED ANY MATERIAL TO SHOW THAT THE DOCUMENTARY VALUE OF THE PROPERTY WHICH ARE BEING REGISTERED DURING THE YEAR 1981 HAVE SHOWN HIGHER VALUE THAN RS.20,000/ - . THE REGISTERED VALUERS REPORT DATED 30.5.2009 , WHICH WAS RELIED ON BY THE ASSESSEE DOES NOT HAVE ANY MATERIAL TO FIX THE VALUE AT RS. 2.25,000/ - PER CENT AS ON 1.4.1981. THE REGISTERED VALUERS REPORT DOES NOT REFER TO ANY SALE DEED WHICH HAS BEEN REGISTERED DURING THE YEAR 1981 FOR ANY OF THE NEA RBY PROPERT IES . THE VALUES REPORT IS ONLY ESTIMATION AND CANNOT FIX THE VALUE FOR THE PRECEDING YEAR ESPECIALLY FOR THE YEAR 1981, UNLESS THE SAME REFERS TO A REGISTERED DOCUMENT DURING THAT PERIOD. SINCE THERE IS NO MATERIAL BEFORE US TO ENHANCE THE FMV AS ON 1.4.1981 FROM RS. 20,000/ - PER CENT, WE ARE CONSTRAINED TO UPHOLD THE ORDERS OF THE INCOME TAX AUTHORITIES. IT IS ORDERED ACCORDINGLY. ITA NO. 54/COCH/2015 5 7 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST D AY OF SEPT 2015 . SD/ - SD/ - ( B P JAIN ) (GEORGE GEORGE .K ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN: DATED 21 ST SEPT 2015 RAJ* COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN