Varun Exiimp Pvt Ltd, Chennai V. DCIT, Corp Cir -3(2), Chennai

ITA 584/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2063 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 07-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABIJIT RAKSHIT
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice; Fair market value

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , ! . , ! ' BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.584/CHNY/2019 /ASSESSMENT YEAR: 2015-16 M/S.VARUN EXIMP PVT. LTD., C/O.M/S.PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHEJA TOWERS, NO.113-134, ANNA SALAI, CHENNAI. [PAN: AABCV 5113 D] VS. THE DY. COMMISSIONER- OF INCOME TAX, CORPORATE CIRCLE-3(2), CHENNAI. ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : MR. D.ANAND, ADV. *+) , /RESPONDENT BY : MR. ABIJIT RAKSHIT, JCIT , /DATE OF HEARING : 19.06.2019 , /DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-7, CHENNAI, IN ITA NO.123(T)/CIT(A)-7/2017-18 DATED 07.01.2019 FOR THE AY 2015-16. 2. SHRI ABIJIT RAKSHIT, JCIT, REPRESENTED ON BEHALF OF THE REVENUE AND SHRI D.ANAND, ADV., REPRESENTED ON BEHALF OF THE AS SESSEE. ITA NO.584/CHNY/2019 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT IN THE COURSE OF THE ASSESSMENT, IT WAS NOTICED THAT THE ASSESSEE HAS SOLD A FLAT NO .2 AT 79, MARSHALLS ROAD, EGMORE, CHENNAI, FOR A CONSIDERATION OF RS.62 .00 LAKHS. HOWEVER, THE GUIDELINE VALUE IN RESPECT OF THE SAID PROPERTY WAS SHOWN AT RS.82,51,500/- IN REGARD TO THE STAMP DUTY. IT WAS A SUBMISSION THAT THE AO HAD CONSEQUENTLY ADOPTED THE STAMP DUTY VALUATIO N AT RS.82,51,500/- BY APPLYING THE PROVISIONS OF SEC.50C. IT WAS A SU BMISSION THAT SEC.50C REFERS FAIR MARKET VALUE AND NOT GUIDELINE VALUE. IT WAS A SUBMISSION THAT IN RESPECT OF THE GUIDELINE VALUE ALSO AS THE GOVER NMENT OF TAMIL NADU HAS CLEARLY UNDERSTOOD THAT THE GUIDELINE VALUE FIX ED WAS ON THE HIGHER SIDE, THE GOVERNMENT REVISED THE GUIDELINE VALUE W. E.F.09.06.2017 TO RS.11,055/- PER SQ.FT. AS AGAINST RS.16,500/- AS AD OPTED BY THE AO BY APPLYING THE GUIDELINE VALUE OF RS.82,51,500/-. IT WAS A SUBMISSION THAT EVEN THOUGH, THE ASSESSEE HAD OBJECTED TO THE ADOPT ION OF THE VALUATION AT RS.82,51,500/-, THE AO HAD NOT REFERRED THE VALU ATION TO DVO. IT WAS A SUBMISSION THAT HE HAD NO OBJECTION IF THE ISSUES I N THIS APPEAL ARE RESTORED TO THE FILE OF THE AO FOR GETTING THE FAIR MARKET VALUE DETERMINED BY THE DVO. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE ORD ER OF THE AO AND THE LD.CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ITA NO.584/CHNY/2019 :- 3 -: 6. ADMITTEDLY, THE ASSESSEE HAS MENTIONED THE SALE CONSIDERATION AS RS.62.00 LAKHS. THE SALE DEED ALSO REFERS TO THE GU IDELINE VALUE OF THE PROPERTY BEING AT RS.82,51,500/-. THE ASSESSEE HAS CHALLENGED THIS BEFORE THE AO STATING THAT THE SALE CONSIDERATION W AS RS.62.00 LAKHS. THIS BEING SO, IN THE INTEREST OF NATURAL JUSTICE, THE I SSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE AO FOR RE-ADJUDICATION AFTER GETTING THE FAIR MARKET VALUE DETERMINED BY THE DVO AS PER THE PROVI SIONS OF SEC.50(C)(2) OF THE ACT. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH DAY OF JUNE, 2019, IN CHENNAI. SD/- SD/- ( . ) ( S. JAYARAMAN ) ! /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER /CHENNAI, 3 /DATED: 19 TH JUNE, 2019. TLN , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. /GF