G.NARASIMHAN, Coimbatore V. CIT(A),NFAC, Delhi

ITA 603/CHNY/2021

AI Insights

The case involves an appeal by G. Narasimhan against the order of the Commissioner of Income Tax (Appeals) concerning the assessment of capital gains for the year 2006-07. Narasimhan had sold a piece of land in 2005, declaring a sale value of \\u20b920 lakhs, which was significantly lower than the stamp duty valuation of \\u20b967.90 lakhs. The Assessing Officer applied section 50C of the Income Tax Act, 1961, using the higher stamp duty valuation to calculate capital gains, which amounted to \\u20b961,70,029. The CIT(A) upheld this approach but directed a reference to the DVO for an accurate assessment. The Tribunal dismissed Narasimhan's appeal, agreeing with the CIT(A)'s directive for a DVO assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134977 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 27-03-2023
• Assessment Year: 2006-2007
• Appeal Filed On: 23-12-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Capital Gains
• Section: 50C

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.603/Chny/2021 िनधाŊरण वषŊ/Assessment Year: 2006-07 G. Narasimhan, No. 362/2B, K.N.G. Pudur Pirivu Bus Stop, Thadagam Road, Coimbatore 641 025. [PAN: ABPPN6573R] Vs. The Assistant Commissioner of Income Tax, Circle II, Coimbatore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri D. Hema Bhupal, JCIT सुनवाई की तारीख/ Date of hearing : 28.03.2023 घोषणा की तारीख /Date of Pronouncement : 12.04.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), (National Faceless Appeal Centre)[NFAC], Delhi dated 27.10.2021 relevant to the assessment year 2006-07. 2. Facts are, in brief, that the assessee is owner of piece of land and the same was sold on 06.07.2005 and declared ₹.20 lakhs as I.T.A. No.603/Chny/21 2 capital gains arising out of this transaction. The Assessing Officer applied the provisions of section 50C of the Income Tax Act, 1961 [“Act” in short] by stating that as per the registered document of sale showing the stamp duty valuation, the sale value was ₹.67.90 lakhs. Accordingly, the Assessing Officer calculated the capital gains based on the notional value under section 50C of the Act and not as per the value declared by the assessee. On appeal, the ld. CIT(A) directed the Assessing Officer to make a reference to the DVO and arrive the sale consideration in accordance with law. 3. Against the order of the ld. CIT(A), the assessee came in appeal before the Tribunal. None appeared on behalf of the assessee, despite the hearing of the appeal was adjourned various occasions. Hence, we proceed to decide the issue on merits after hearing the ld. DR. 4. We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. In this case, by invoking the provisions of section 50C of the Act, the Assessing Officer has determined the capital gains at ₹.61,70,029/- as against ₹.20,00,000/- admitted by the assessee. On appeal, the ld. CIT(A) has directed the Assessing Officer to refer the matter to DVO and decide I.T.A. No.603/Chny/21 3 the capital gains in accordance with law. We find no infirmity in the order passed by the ld. CIT(A) and no interference is warranted. 5. In the result, the appeal filed by the assessee is dismissed. Order pronounced on 12 th April, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 12.04.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.