Shri Rohit Chokhawala , Surat V. The Income Tax Officer, Ward-2(1), Surat

ITA 645/AHD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94554 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-10-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 04-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADIPKUMAR MAJUMDAR
• Assessee Lawyers: B S VADIYA
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA. NO. 644/AHD/2014 (ASSESSMENT YEAR:2004-05) SHRI BHUPENDRA CHOKHAWALA, CHOKWALA ESTATE, UMRA JAKAT NAKA, SURAT - 395007 APPELLANT VS. ITO, WARD 2(1), SURAT RESPONDENT PAN: ABFPC0100P & ITA. NO. 645/AHD/2014 (ASSESSMENT YEAR:2004-05) SHRI ROHIT CHOKHAWALA, CHOKWALA ESTATE, UMRA JAKAT NAKA, SURAT - 395007 APPELLANT VS. ITO, WARD 2(1), SURAT RESPONDENT PAN: ABFPC0094C / BY ASSESSEE : SHRI B. S. VADIYA, A.R. / BY REVENUE : SHRI PRADIP KUMAR MAJUMDAR, SR. D.R. /DATE OF HEARING : 13.10.2015 /DATE OF PRONOUNCEMENT : 21.10.2015 ITA NOS.644 & 645/AHD/2014 A.Y. 2004-05 - 2 - ORDER PER S. S. GODARA, JUDICIAL MEMBER THESE TWO DIFFERENT ASSESSEES ARE IN APPEAL IN ASSE SSMENT YEAR 2004-05, AGAINST SEPARATE ORDERS OF THE CIT(AP PEALS)-II, SURAT, BOTH DATED 02.08.2013 PASSED IN APPEAL NOS. CAS-II/128 & 129/2012-13 RESPECTIVELY CONFIRMING IDENTICAL PEN ALTY OF RS.1,25,960/- EACH, IN PROCEEDINGS U/S.271(1)(C) OF THE INCOME TAX ACT, 1961, HEREAFTER THE ACT. 2. BOTH THESE APPEALS COMPRISE OF FACTS IN A NARROW COMPASS. THESE ASSESSEES CO-OWNED AN IMMOVABLE PROPERTY AT R .S. NO. 92, F.P. NO.64, TPS NO.21, CHORYASI BESTAN, DIST. SURAT . THEY SOLD IT FOR RS.22LACS ALONG WITH OTHER CO-OWNERS IN THE REL EVANT PREVIOUS YEAR. THE STAMP VALUATION AUTHORITY DETERMINED MAR KET VALUE OF THE PROPERTY AT RS.26,52,000/- RESULTING IN CORRESP ONDING CAPITAL GAINS OF RS.6,11,459/-. THE ASSESSING OFFICER IN P ENALTY ORDER FRAMED REGULAR ASSESSMENT ON 25.06.2012 THEREBY ADD ING THE ABOVE STATED LONG TERM CAPITAL GAINS U/S.50C OF THE ACT. HE INITIATED SECTION 271(1)(C) PENALTY PROCEEDINGS QUA THE ABOVE STATED CAPITAL GAINS. HE ACTED ACCORDINGLY IN PENAL TY ORDER DATED 25.06.2012 AND IMPOSED THE IMPUGNED PENALTIES OF RS.1,25,960/- EACH IN THESE TWO CASES. THE CIT(A) UPHOLDS THE SAME. THIS LEAVES THE ASSESSEES AGGRIEVED. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE C ASE FILE. THERE IS NO DISPUTE THAT THE ASSESSING OFFICER INVO KED SECTION 50C OF THE ACT AND REWORKED CAPITAL GAINS IN THESE TWO ASSESSEES CASES AS PER THE STAMP VALUATION AUTHORITIES ACTIO N RE- DETERMINING SALE PRICE OF ASSESSEES IMMOVABLE PROP ERTY SOLD ITA NOS.644 & 645/AHD/2014 A.Y. 2004-05 - 3 - FROM RS.22LACS TO RS.26,52,000/- (SUPRA). THE QUES TION THAT ARISES FOR OUR CONSIDERATION IS AS TO WHETHER THESE ASSESSEES / CO-OWNERS CAN BE HELD TO HAVE CONCEALED OR FILED IN ACCURATE PARTICULARS OF INCOME OR NOT U/S.271(1)(C) OF THE A CT. WE NOTICE THAT HONBLE BOMBAY HIGH COURT IN CASE OF CIT VS. F ORTUNE HOTELS & ESTATES (P) LTD. (2014) 52 TAXMANN.COM 330 (BOMBAY) HOLDS THAT SECTION 271(1)(C) PENALTY IS NOT ATTRACT ED IN CASE OF RE- DETERMINATION OF SALE VALUE OF A PROPERTY AFTER INV OKING SECTION 50C OF THE ACT. A CO-ORDINATE BENCH DECISION IN IT A NO.2600/AHD/2013 SMT. DAXABEN K. PATEL VS. ITO DECI DED ON 26.08.2015 ALSO FOLLOWED THE SAME. THE REVENUE FAI LS TO POINT OUT ANY DISTINCTION ON FACTS OR LAW. WE ACCORDINGL Y DECIDE THE ABOVE STATED QUESTION FRAMED IN ASSESSEES FAVOUR A ND DELETE THE IMPUGNED PENALTIES OF RS.1,25,960/- EACH. 4. THESE ASSESSEES APPEALS IN ITA ARE ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 21 ST DAY OF OCTOBER, 2015. SD/- SD/- (ANIL CHATURVEDI) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 21/10/2015 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + ,--. . /0 / DR, ITAT, AHMEDABAD 1 + 23 / GUARD FILE. BY ORDER / . //