JITENDRA NANDLAL MURPANA, MUMBAI V. ITO 19(3)(2), MUMBAI

ITA 5424/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8449 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 22-10-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 20-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J, MUMBAI .. , ! ' # , $ ' , % BEFORE SHRI R.S.SYAL, AM AND SHRI VIVEK VARMA, JM ./ ITA NO.5424/MUM/2011 ( $' ( $' ( $' ( $' ( / / / / ASSESSMENT YEAR : 2006-2007) SHRI JITENDRA NANDLAL MURPANA VENDAND, PLOT NO.361/363 21 ST ROAD, TPS-III, BANDRA (WEST) MUMBAI 400 050. PAN : AACPM1887D THE INCOME TAX OFFICER WARD 19(3)(2) MUMBAI. ( )* / // / APPELLANT) ' ' ' ' / VS. ( +,)*/ RESPONDENT) ./ ITA NO.5425/MUM/2011 ( $' ( $' ( $' ( $' ( / / / / ASSESSMENT YEAR : 2006-2007) SHRI JAGDISH NANDLAL MURPANA VENDAND, PLOT NO.361/363 21 ST ROAD, TPS-III, BANDRA (WEST) MUMBAI 400 050. PAN : AACPM1923G THE INCOME TAX OFFICER WARD 19(3)(2) MUMBAI. ( )* / // / APPELLANT) ' ' ' ' / VS. ( +,)*/ RESPONDENT) )* - -- - . . . . / APPELLANT BY : SHRI JAYANT BHAT +,)* - . - . - . - . / RESPONDENT BY : SHRI A.B.KOLI ' - /! / / / / DATE OF HEARING : 22.10.2012 01( - /! / DATE OF PRONOUNCEMENT : 23.10.2012 '2 '2 '2 '2 / / / / O R D E R PER R.S.SYAL (AM) : THESE TWO APPEALS BY DIFFERENT BUT CONNECTED ASSESS EES ARISE OUT OF THE ORDERS PASSED BY THE COMMISSIONER OF INC OME-TAX ITA NOS.5424 & 5425/MUM/2011. SHRI JITENDRA N MURPANA & JAGDISH N MURPANA. 2 (APPEALS) UPHOLDING THE PENALTY LEVIED U/S 271(1)(C ) OF THE ACT IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT SH . JITENDRA NANDLAL MORPANA, ONE OF THE ASSESSES IN THIS BATCH, DECLARE D LONG TERM CAPITAL GAIN AT ` 6,98,590 IN HIS RETURN OF INCOME. THE ASSESSING OFF ICER INVOKED THE PROVISIONS OF SECTION 50C AND DETERMINE D THE AMOUNT OF CAPITAL GAIN AT ` 8,74,940. IT IS ON THE BASIS OF DIFFERENCE BETWEEN THE CAPITAL GAIN SO DECLARED BY THE ASSESSEE AND THAT C OMPUTED BY INVOKING THE PROVISIONS OF SECTION 50C THAT THE PEN ALTY WAS IMPOSED U/S 271(1)(C), WHICH CAME TO BE UPHELD IN THE FIRST APPEAL. THE FACTS OF THE SECOND ASSESSEE ARE MUTATIS MUTANDIS SIMILAR. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT SI MILAR ISSUE HAS BEEN CONSIDERED BY THE MUMBAI BENCHES OF THE TRIBUNAL IN SEVERAL CASES. ONE OF SUCH CASES IS THAT OF RENU HINGORANI V. ACIT IN ITA NO.2210/MUM/2010. VIDE ITS ORDER DATED 22.12.2010, THE TRIBUNAL HAS HELD THAT NO PENALTY CAN BE IMPOSED U/S 271(1)( C) WHERE AN ADDITION IS MADE BY INVOKING THE PROVISIONS OF SECT ION 50C. ONE OF US, NAMELY THE AM, IS PARTY TO THIS ORDER. BOTH TH E SIDES ARE IN AGREEMENT THAT THERE ARE NO DISTINGUISHING FACTS AN D CIRCUMSTANCES IN THE INSTANT CASE VIS--VIS THE DECISION BY THE TRIBUNAL IN THE CASE OF RENU HINGORANI. FOLLOWING THE PRECEDENT, WE OVERTUR N THE IMPUGNED ORDERS AND DIRECT THE DELETION OF PENALTY U/S 271(1 )(C) IN BOTH THE CASES. ITA NOS.5424 & 5425/MUM/2011. SHRI JITENDRA N MURPANA & JAGDISH N MURPANA. 3 4. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED. ORDER PRONOUNCED ON THIS 23 RD DAY OF OCTOBER, 2012. '2 - 01( 3''4 1 - 5 SD/- SD/- (VIVEK VARMA) (R.S.SYAL) $ ' $ ' $ ' $ ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; 3'' DATED : 23 RD OCTOBER, 2012. DEVDAS* '2 - +$/6# 7#(/ '2 - +$/6# 7#(/ '2 - +$/6# 7#(/ '2 - +$/6# 7#(// COPY OF THE ORDER FORWARDED TO : 1. )* / THE APPELLANT 2. +,)* / THE RESPONDENT. 3. 8 () / THE CIT(A)-XXI / XXX, MUMBAI. 4. 8 / CIT 5. #;5 +$/$' , , / DR, ITAT, MUMBAI 6. 5< = / GUARD FILE. '2' '2' '2' '2' / BY ORDER, ,#/ +$/ //TRUE COPY// > > > >/ // /? ? ? ? ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI