Bishnu Kumar Khemka, Kolkata V. ITO, Ward-28(4), Kolkata. , Kolkata

ITA 640/KOL/2023

AI Insights

The case involves an appeal by Bishnu Kumar Khemka against the order of the Learned Commissioner of Income-tax (Appeals) - NFAC, Delhi, which affirmed the addition of Rs. 5,52,757/- to the assessee's income. This addition was based on the difference between the property value as per the Stamp Valuation Authority and a government-approved valuer. The property in question was sold, and the assessee received a consideration significantly lower than the assessed fair market value. The Tribunal, referencing a similar case, ruled in favor of the assessee, emphasizing the statutory provision that allows a 10% variance in valuation for tax purposes.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128730 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 27-06-2023
• Other Referred Cases: Sandeep Kumar Poddar Vs. ITO [2023] 151 taxmann.com 18 (Kolkata-Trib.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Set aside
• Section: 148; 50C

Judgement Text

आयकर अपीलीय अधिकरण कोलकाता 'एसएमसी' पीठ, कोलकाता म ें IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA श्री राज े श क ु मार, ल े खा सदस्य एवं श्री संजय शमा ा , न्याधयक सदस्य क े समक्ष Before SRI RAJESH KUMAR, ACCOUNTANT MEMBER & SONJOY SARMA, JUDICIAL MEMBER I.T.A. No.: 640/KOL/2023 Assessment Year: 2012-13 Bishnu Kumar Khemka............................................Appellant [PAN: AFJPK 3660 C] Vs. ITO, Ward-28(4), Kolkata......................................Respondent Appearances by: Sh. Abhishak Bansal, A/R, appeared on behalf of the Assessee. Sh. Prabir Guptachoudhury, Addl. CIT, appeared on behalf of the Revenue. Date of concluding the hearing : August 7 th , 2023 Date of pronouncing the order : August 25 th , 2023 ORDER Per Rajesh Kumar, Accountant Member: This is an appeal preferred by the assessee against the order of Learned Commissioner of Income-tax (Appeals)- NFAC, Delhi [hereinafter referred to Ld. ‘CIT(A)’] dated 02.05.2023 for the Assessment Year (in short ‘AY’) 2012-13. 2. The only issue raised by the assessee in the grounds of appeal is against the ex-parte order passed by Ld. CIT(A) wherein Ld. I.T.A. No.: 640/KOL/2023 Assessment Year: 2012-13 Bishnu Kumar Khemka. Page 2 of 4 CIT(A) affirmed the order of the Assessing Officer (in short ld. 'AO') confirming the addition of Rs. 5,52,757/- made by Ld. AO on account of difference between the value of property as per Stamp Valuation Authority and as per Government approved valuer. 3. The facts in brief are that the assessee filed the return of income on 30.08.2012 declaring the total income at Rs. 4,08,877/- . The case of the assessee was selected for scrutiny through reopening of the assessment by issuing notice u/s 148 of the Income Tax Act, 1961 (in short the 'Act') dated 03.03.2016. After recording the reasons to believe u/s 148(2) of the Act wherein it has been noted that the assessee has sold property in which he had 1/6 th ownership during the year and the sale consideration is less than the fair market value and accordingly, the income has escaped assessment. Ld. AO during the course of assessment proceedings noted that the market value of the said property has been assessed at Rs. 5,89,97,915/- by the office of A.R.A-II, Kolkata. However, the amount of consideration received by the assessee was only Rs. 50 lakh out of the sale consideration vide sale deed dated 19.12.2011. The assessee has furnished valuation report of the property valuing the property at Rs. 70.93 lakh as on 01.04.1981 and the indexed value of the property was worked out at Rs. 5,56,80,050/-. Ld. AO accordingly computed the share of the assessee in the property at Rs. 98,29,053/- as per the Stamp Value Authority and after reducing the value as per the Government approved valuer at Rs. 92,76,296/- added a sum of Rs. 5,52,757/- as difference between the market value as per Government approved valuer and Value as per stamp authority u/s I.T.A. No.: 640/KOL/2023 Assessment Year: 2012-13 Bishnu Kumar Khemka. Page 3 of 4 50C of the Act to the income of the assessee. Ld. CIT(A) simply affirmed the order of Ld. AO. 4. After hearing the rival contentions and perusing the material on record, we find that the difference between the value as per Stamp Valuation Authority and the value as per the Government approved valuer is less than 10% which is within the leverage provided u/s 50C of the Act. The third proviso to Section 50C of the Act provides that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and ten per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of Section 48, be deemed to be the full value of the consideration. The case of the assessee finds support from the decision of the Coordinate Bench in the case of Sandeep Kumar Poddar Vs. ITO reported in [2023] 151 taxmann.com 18 (Kolkata-Trib.) order dated 13.03.2023 wherein a similar issue has been decided by the assessee. We, therefore, respectfully following the decision of the Coordinate Bench set aside the order of Ld. CIT(A) and direct Ld. AO to delete the addition of Rs. 5,52,757/- u/s 50C of the Act. 5. In the result, the appeal filed by the assessee is allowed. Kolkata, the 25 th August, 2023. Sd/- Sd/- [Sonjoy Sarma] [Rajesh Kumar] Judicial Member Accountant Member Dated: 25.08.2023 Bidhan (P.S.) I.T.A. No.: 640/KOL/2023 Assessment Year: 2012-13 Bishnu Kumar Khemka. Page 4 of 4 Copy of the order forwarded to: 1. Bishnu Kumar Khemka, 502, Block B, Ganges Residency, New Alipore S.O., Kolkata-700 053. 2. ITO, Ward-28(4), Kolkata. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata