FORTUNE HOTELS & ESTATE P. LTD, MUMBAI V. ACIT CEN CIR 29, MUMBAI

ITA 5797/MUM/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7620 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 19-03-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 16-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUBACHAN RAM
• Assessee Lawyers: K R LAKSHMINARAYAN
• Keywords: Sale consideration of property below Jantri Value

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH: MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.5797/MUM/2010 (ASSESSMENT YEAR: 2004-05) FORTUNE HOTELS AND ESTATES PVT. LTD., PLOT NO.25, GIRANARA, B-WING, PALI MALA ROAD, BANDRA (W), MUMBAI -400 050 ...... APPELLANT VS ACIT, CENTRAL CIRCLE-29, AAYAKAR BHAVAN, MUMBAI -400 020 ..... RESPONDENT PAN: AAACF 0694 G APPELLANT BY: MR. K.R. LAKSHMINARAYAN RESPONDENT BY: MR. SUBACHAN RAM DATE OF HEARING: 19.03.2012 DATE OF PRONOUNCEMENT: 28.03.2012 O R D E R PER R.S. PADVEKAR, JM : IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A)-CENTRAL-V, MUMBAI DATED 04.7.200 8 FOR THE A.Y. 2004-05. THE SOLITARY ISSUE IN CONTROVERSY IN THIS APPEAL IS WHETHER THE A.O. WAS JUSTIFIED IN APPLYING THE PROVISIONS O F SEC.50C TO THE OFFICE PREMISES SOLD BY THE ASSESSEE VIDE AGREEMENT TO SALE DATED 21.08.2003. 2. THE A.O. ADOPTED THE VALUATION MADE BY THE STAMP DUTY AUTHORITY FOR THE PURPOSE OF PAYMENT OF THE STAMP D UTY OF ` 3,72,42,000/- AS AGAINST SALE CONSIDERATION OF ` 2 CRORES DECLARED BY THE ASSESSEE. THE LD. COUNSEL SUBMITS THAT NOW THI S ISSUE STANDS COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE HONBLE ITAT, SPECIAL BENCH, MUMBAI IN THE CASE OF ITO VS. UNITED MARINE ACADEMY 130 ITD 113 (MUM)(SB). IN THE CASE OF UNITED MARIN E ACADEMY (SUPRA) THE HONBLE SPECIAL BENCH HAS CONSIDERED TH E APPLICABILITY OF SEC.50C ON THE TRANSFER OF THE DEPRECIABLE ASSET TO WHICH THE ITA 5797/M/2010 FORTUNE HOTELS AND ESTATES PVT. LTD. 2 PROVISIONS OF SEC.50C ARE APPLICABLE AND HELD THAT SEC.50C IS APPLICABLE. WE, THEREFORE, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN IN THE CASE OF UNITED MARINE ACADEMY (SUPRA) D ISMISS THE SOLE ISSUE INVOLVED IN GROUNDS TAKEN BY THE ASSESSEE IN THIS APPEAL. 3. IN THE RESULT, ASSESSEES APPEAL STANDS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 8TH MARCH, 2012. SD/- ( B. RAMAKOTAIAH ) ACCOUTANT MEMBER SD/- ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 28TH MARCH, 2012 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CENTRAL-5, MUMBAI. 4) THE CIT CENTRAL -2, MUMBAI. 5) THE D.R. F BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN