Sh. Ravinder Kumar Khattar, New Delhi V. ITO, New Delhi

ITA 5872/DEL/2014

• Counselvise Citation: 587220114 RSA 2014
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 14-08-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 31-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GARIMA JAIN SENIOR
• Assessee Lawyers: RAHUL KAMPANI
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC- -- -1 11 1 : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 5872/DEL/2014 5872/DEL/2014 5872/DEL/2014 5872/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2005 2005 2005 2005 - -- - 06 0606 06 SHRI RAVINDER KUMAR KHATTAR, SHRI RAVINDER KUMAR KHATTAR, SHRI RAVINDER KUMAR KHATTAR, SHRI RAVINDER KUMAR KHATTAR, B BB B- -- -4/134, 4/134, 4/134, 4/134, SAFDARJUNG ENCLAVE, SAFDARJUNG ENCLAVE, SAFDARJUNG ENCLAVE, SAFDARJUNG ENCLAVE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 029. 110 029. 110 029. 110 029. PAN : AAJPK93 PAN : AAJPK93 PAN : AAJPK93 PAN : AAJPK9321P. 21P. 21P. 21P. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -37(1), 37(1), 37(1), 37(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAHUL KAMPANI, CA. RESPONDENT BY : MS. GARIMA JAIN, SENIOR DR. DATE OF HEARING : 14.08.2015 14.08.2015 14.08.2015 14.08.2015 DATE OF PRONOUNCEMENT : 08.09.2015 08.09.2015 08.09.2015 08.09.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2005-0 6 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXVIII, NEW DELHI DATED 28 TH AUGUST, 2014. 2. THE EFFECTIVE GROUND OF APPEAL OF THE ASSESSEE IS GR OUND NO.2, WHICH READS AS UNDER:- ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT(A) XXVIII, NEW DELHI WAS TOTALLY UNJUSTIFIED IN U PHOLDING THE ADDITION OF THE RS.1,70,630/- MADE BY THE LEARNE D ASSESSING AUTHORITY ON ACCOUNT OF DIFFERENCE BETWEEN CO ST OF PLOT PURCHASED AND COST AS PER CIRCLE RATE IN THE INCOME. HON'BLE DELHI HIGH COURT IN THE MATTER OF KHOOBSURA T RESORTS PVT.LTD. [2012] 28 TAXMANN.COM 93. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PR OVISION OF THE SECTION 50C WAS WRONGLY INVOKED IN THIS CASE AS IT DOES NOT APPLY ITA-5872/DEL/2014 2 TO THE CASE OF THE PURCHASER OF THE PROPERTY AND THE AMENDMENT TO INCLUDE THE PURCHASERS CASE ALSO U/S 50C WAS MADE EFFECT IVE FROM 01.04.2013 AND THE RELEVANT ASSESSMENT YEAR BEING 2005- 06, THE PROVISION OF SECTION 50C DOES NOT APPLY. HE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF H ON'BLE DELHI HIGH COURT IN THE CASE OF CIT, DELHI-II VS. KHOOBSURA T RESORTS (P) LTD. [2012] 28 TAXMANN.COM 93 (DELHI) AND ALSO DECISION OF ITAT, DELHI BENCH IN THE CASE OF ITO VS. FITWELL LOGIC SYSTEM (P) LTD. [2010] 1 ITR (TRIB.) 286 (DELHI). 4. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE AO AND THE LEARNED CIT(A). THE PROVISI ON OF SECTION 50C, AS IT WAS DURING THE RELEVANT PERIOD, APPLIES TO THE CASE OF THE SELLER OF THE PROPERTY AND NOT TO THE PURCHASER OF THE PROPERT Y. THE AMENDMENT UNDER LAW TO INCLUDE THE CASE OF PURCHASER ALSO U/S 50C HAS COME INTO FORCE WITH EFFECT FROM 01.04.2013. APA RT FROM THE CIRCLE RATE BEING MORE THAN THE APPARENT CONSIDERATION, NO OTHER MATERIAL WAS BROUGHT ON RECORD ON BEHALF OF THE REVENUE TO JU STIFY THE ADDITION. ACCORDINGLY, THE ADDITION OF `1,70,630/- MADE BY IN VOKING THE PROVISION OF SECTION 50C COULD NOT BE SUSTAINED AND, ACCORDING LY, THE ADDITION MADE IS DELETED AND GROUND OF APPEAL NO.2 OF THE ASSESSE E IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-5872/DEL/2014 3 COPY FORWARDED TO: - 1. APPELLANT : SHRI RAVINDER KUMAR KHATTAR, SHRI RAVINDER KUMAR KHATTAR, SHRI RAVINDER KUMAR KHATTAR, SHRI RAVINDER KUMAR KHATTAR, B BB B- -- -4/134, SAFDARJUNG ENCLAVE, 4/134, SAFDARJUNG ENCLAVE, 4/134, SAFDARJUNG ENCLAVE, 4/134, SAFDARJUNG ENCLAVE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 029. 110 029. 110 029. 110 029. 2. RESPONDENT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -37(1), NEW DELHI. 37(1), NEW DELHI. 37(1), NEW DELHI. 37(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR