Md. Zaheeruddin, Hyderabad, Hyderabad V. ITO, Ward-6(4), Hyd, Hyderabad

ITA 671/HYD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2688 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 27-07-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 10-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: S RAMA RAO
• Keywords: Sale consideration of property below Jantri Value; Capital asset
• Section: 50C; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER I.T.A. NO. 671/HYD/2016 ASSESSMENT YEAR: 2006-07 MD. ZAHEERUDDIN, HYDERABAD [PAN: AMDPM5480H] VS THE INCOME TAX OFFICER, WARD-6(4), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : SMT. SUMAN MALIK, DR DATE OF HEARING : 07-08-2017 DATE OF PRONOUNCEMENT : 07-08-2017 O R D E R PER CHANDRA POOJARI, A.M. : THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, HYDERABAD, DATED 26-02-2016. THE ASSESSEE HAS RAISED THE FOLLOWING G ROUNDS OF APPEAL: 1) THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS B OTH ON FACTS AND IN LAW. 2) THE LEARNED CIT(A) ERRED IN DECIDING THE APPEAL WITHOUT PROVIDING PROPER OPPORTUNITY TO THE APPELLANT. 3) THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER IN INITIATING PROCEEDINGS U/S.147 AND IN CO MPLETING THE ASSESSMENT U/S. 144 OF THE I.T.ACT. ITA NO. 671/HYD/16 MD. ZAHEERUDDIN :- 2 - : 4) THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER IN ADOPTING THE SALE CONSIDERATION OF THE P ROPERTY AT RS.28,98,800/- BASED ON THE VALUE FIXED BY THE SUB REGISTRAR WITHOUT CONSIDERING THE ACTUAL CONSIDERATION RECEIVED OF RS .12,51, 000/- 5) THE LEARNED CIT(A) OUGHT TO HAVE DIRECTED THE AS SESSING OFFICER TO ADOPT THE ACTUAL SALE CONSIDERATION AS RECORDED IN THE BO OKS OF ACCOUNT AND DIRECTED THE ASSESSING OFFICER TO DECIDE THE CAPITA L GAIN ACCORDINGLY. 6) ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 2. THE FACTS OF THE CASE ARE THAT, ASSESSEE IS AN INDIV IDUAL FILED HIS RETURN OF INCOME FOR THE AY. 2006-07. THE ASSESSM ENT WAS REOPENED ON THE BASIS OF INFORMATION THAT THE ASSESSEE HAD SOLD LAND AND HAS NOT OFFERED CAPITAL GAINS INCOME ON SAL E OF LAND. ACCORDINGLY, NOTICE U/S. 148 WAS ISSUED AND SERVED U PON THE ASSESSEE. HOWEVER, NONE APPEARED TO THE SAID NOTICES . SINCE, THERE WAS NO REPLY FROM THE ASSESSEE, A SHOW CAUSE N OTICE WAS ISSUED ON THE ASSESSEE, IN REPLY TO WHICH THE ASSESSE E APPEARED AND SUBMITTED THE DETAILS CALLED FOR. AFTER EXAMINING TH E SAME, THE ASSESSING OFFICER (AO) WHILE COMPLETING THE ASSESSMEN T ORDER OBSERVED THAT THE ASSESSEE PURCHASED A LAND FROM APIDC LTD., ON 29-09-2003 THROUGH AGREEMENT OF SALE FOR A CONSIDERATI ON OF RS.12,00,269/ - BY AVAILING A LOAN OF RS.7,00,000/ - FROM THE AP STATE FINANCIAL CORPORATION. LATER ON THE ASSESSEE SOLD THIS LAND TO SMT. G. BHARATHI VIDE SALE DEED DATED 17-11-2005 FOR A SALE CONSIDERATION OF RS.12,51,000/-. THE FAIR MARKET VALU E AS PER SRO FOR THE LAND IS RS. 28,98,800/-. SINCE, THE ASSESSEE HAS NOT FILED RETURN OF INCOME FOR THE AY. 2006-07, AS PER THE PROVI SIONS OF SECTION 50C OF THE INCOME TAX ACT, 1961 [ACT] WHERE THE CONSIDERATION RECEIVED AS A RESULT OF THE TRANSFER BY AN ASSESSEE OF CAPITAL ASSET IS LESS THAN THE VALUE ADOPTED BY THE STAMP ING AUTHORITY FOR THE PURPOSES OF STAMP DUTY, THEN THE VALUE SO ITA NO. 671/HYD/16 MD. ZAHEERUDDIN :- 3 - : ADOPTED SHALL BE DEEMED TO BE THE FULL VALUE OF CONSID ERATION. THE AO COMPLETED THE ASSESSMENT BY ADOPTING THE VALUE OF S UB REGISTRAR FOR THE PURPOSES OF STAMP DUTY WHICH IS OF R S. 28,98,800/-. BY OBSERVING THE ABOVE, THE AO COMPLETED THE ASSESSMENT BY ADOPTING THE VALUE OF SUB REGISTRAR FOR TH E PURPOSE OF STAMP DUTY WHICH IS OF RS. 28,98,800/-. 3. BEFORE THE CIT(A), ASSESSEE REQUESTED TO ADMIT THE CERTIFICATE OF MARKET VALUE, SRO VALUE ON THE ADJACENT LAND AS PER SALE DEED NO. 1989 OF 2008 AND ALSO LETTER OF APIIC DT. 29-11-2 002, WHICH WAS FORWARDED TO THE AO FOR REMAND REPORT. THE AO IN HIS REPLY SUBMITTED THAT AS PER THE SRO, THE VALUE OF THE PROPERTY S OLD BY THE ASSESSEE WAS CORRECTLY FIXED AT RS. 28,98,800/-, W ITH REGARD TO SRO VALUE ON THE ADJACENT LAND AS PER SALE DEED NO. 1 989 OF 2008, SUBMITTED THAT THE REGISTERING AUTHORITIES HAVE ADOPTED IN C ORRECT VALUE FOR THIS LAND IS NOT CORRECT AND WITH REGARD TO L ETTER OF APPIC DT. 29-11-2002, THE AO MENTIONED THAT THE ASSESSEE HAS NOT MENTIONED ANY RELEVANCE ON THIS LETTER ON THE SUBJECT MATTER OF APPEAL AND HENCE, NO REPORT COULD BE SUBMITTED. 4. THE CIT(A) OBSERVED THAT SINCE, SEVERAL OPPORTUNIT IES WERE GIVEN TO ASSESSEE TO PUT FORTH HIS SUBMISSIONS IN SUPP ORT OF HIS CONTENTIONS, AS THERE IS NO COMPLIANCE AT ALL FROM THE ASSESSEE IN PERSON OR THROUGH HIS AUTHORISED REPRESENTATIVE, SHE LEFT WITH NO OTHER OPTION TO CONCLUDE THAT THE ASSESSEE HAS NOTHING TO SUBMIT IN SUPPORT OF HIS GROUNDS RAISED. ACCORDINGLY, HE A GREED WITH THE FINDINGS OF MADE BY THE AO IN THE ASSESSMENT ORDER AN D ALSO THE SUBMISSIONS MADE IN THE REMAND REPORT. HENCE, HE UPH ELD THE ADDITION MADE BY THE AO IN THE ASSESSMENT ORDER. FINA LLY, CIT(A) ITA NO. 671/HYD/16 MD. ZAHEERUDDIN :- 4 - : DISMISSED THE APPEAL OF ASSESSEE. AGAINST THE SAID OR DER OF CIT(A), ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY IN THIS CASE, THE ASSE SSMENT ORDER WAS PASSED U/S. 144 OF THE ACT WITHOUT PARTICIPATION O F THE ASSESSEE. SIMILARLY, THOUGH THE CIT(A) CALLED FOR THE REMAND REPORT FROM THE AO, WHO HAS SENT THE SAME AND IT WAS NOT CONFRO NTED TO THE ASSESSEE AND ALSO THERE WAS NO PROPER REPRESENTATI ON BEFORE THE CIT(A) BY ASSESSEE. CONSIDERING THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT IT IS APPROPRIATE TO REMIT THE ENTIRE ISSUE-IN-DISPUTE TO THE FILE OF THE AO FOR HIS CO NSIDERATION TO DECIDE THE SAME AFTER GIVING DUE OPPORTUNITY OF HEARI NG TO ASSESSEE. ORDERED ACCORDINGLY. 6. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH AUGUST, 2017 SD/- SD/- (P. MADHAVI DEVI) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 7 TH AUGUST, 2017 TNMM ITA NO. 671/HYD/16 MD. ZAHEERUDDIN :- 5 - : COPY TO : 1. MD. ZAHEERUDDING, PROP: MARVEL RUBBER, C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE , 3-6-643, STREET NO. 9, HIMAYAT NAGAR, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-6(4), HYDERABAD. 3. CIT (APPEALS)-4, HYDERABAD. 4. PR.CIT-6, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.