SONAWALA INDUSTRIES P.LTD, MUMBAI V. JT CIT (OSD) 4(3), MUMBAI

ITA 683/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2729 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 29-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N SATHYA MOORTHY
• Keywords: Sale consideration of property below Jantri Value; Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E B ENCH, MUMBAI BEFORE SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, JUDICIAL MEMBER / I .TA NO.683/MUM/2014 ( / ASSESSMENT YEAR: 2009-10 M/S. SONAWALA INDUSTRIES PVT. LTD., 135, SHEIKH MEMON STREET, ZAVERI BAZAR, MUMBAI -400 002 / VS. THE JCIT (OSD) - 4(3), AAYAKAR BHAVAN, MUMBAI-400 020 ./ ./ PAN/GIR NO. AADCS 0760M ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI JITENDRA JAIN / RESPONDENT BY: SHRI N. SATHYA MOORTHY / DATE OF HEARING :26.07.2016 ! / DATE OF PRONOUNCEMENT :23.09.2016 / O R D E R PER C.N. PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-8, MUMBAI DATED 09.12.2013 PERTAINING TO ASS ESSMENT YEAR 2009-10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1) THE COMMISSIONER OF INCOME TAX-8 (APPEALS) [HER EINAFTER REFERRED TO AS CIT(A)] ERRED IN CONFIRMING THE VALU ES OF PLOT NOS. 506 AND 509 OF RS. 1,59,96,000/- ARRIVED AT BY THE DVO IN COMPUTING THE CAPITAL GAINS. THE APPELLANTS SUBMIT THAT SINCE THE PROPERTIES ARE FULLY ENCROACHED BY THE PROTECTE D TENANT/ ILLEGAL TENANTS THE CONSIDERATION RECEIVED BY THEM OF RS. ITA NO.683/M/2014 2 50,00,000/- REPRESENTS TRUE MARKET VALUE AND PRAY T HAT THE JOINT COMMISSIONER OF INCOME TAX (OSD)-4(3), MUMBAI (HERE INAFTER REFERRED TO AS THE JCIT) BE DIRECTED TO ACCEPT THE SAME IN COMPUTING THE CAPITAL GAINS. WITHOUT PREJUDICE TO THE ABOVE THE CIT (A) ERRED IN NOT ACCEPTING THE APPELLANTS CONTENTION THAT SINCE THE VALUE OF R S.46,80,540 DETERMINED BY THE DVO FOR PLOT NO.509 IS LESS THAT THE VALUE OFRS.87,03,372 COMPUTED BY THE STAMP AUTHORITIES, T HE SAME SHOULD BE ADOPTED IN COMPUTING CAPITAL GAINS AS PER SECTION 50C(3) OF THE ACT. THE APPELLANTS PRAY THAT THE JCI T BE GIVEN SUITABLE DIRECTIONS IN THE MATTER. 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITS THAT GROUND NO. 1 REGARDING CONFIRMING THE VALUES OF THE PLOT NO. 506 AND 509 ARRIVED AT BY THE DVO IN COMPUTING THE CAPITAL GAINS IS NOT PRESSED. THEREFORE, THIS GROUND RAISED BY THE ASSE SSEE IS DISMISSED AS NOT PRESSED. 4. HOWEVER COMING TO THE ALTERNATIVE GROUND, THE LD . COUNSEL FOR THE ASSESSEE SUBMITS THAT THE VALUE OF PLOT NO. 509 DETERMINED BY THE STAMP AUTHORITIES IS LESS THAN THE VALUE COMPUTED B Y DVO AND THEREFORE, THE VALUE AS PER STAMP AUTHORITIES SHO ULD BE ADOPTED IN COMPUTING CAPITAL GAINS AS PER THE PROVISIONS OF SE C. 50C(3) OF THE ACT. THEREFORE, THE LD. COUNSEL FOR THE ASSESSEE S UBMITS THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THIS ISSUE IN THE LIGHT OF THE PROVISIONS OF SEC. 50C(3) OF THE ACT. 5. ON A QUERY FROM THE BENCH TO THE LD. DEPARTMENTA L REPRESENTATIVE WHETHER THE MATTER SHOULD GO BACK T O THE ASSESSING OFFICER TO DECIDE IN VIEW OF THE PROVISIONS OF SEC. 50C(3), HE HAS NO SERIOUS OBJECTION. ITA NO.683/M/2014 3 6. ON HEARING BOTH THE PARTIES, WE ARE INCLINED TO RESTORE THIS MATTER TO THE FILE OF THE ASSESSING OFFICER TO DECI DE THE ISSUE IN THE LIGHT OF THE PROVISIONS OF SEC. 50C(3) IN RESPECT O F THE PROPERTY IN PLOT NO. 509. THUS, WE RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW A ND AS PER THE PROVISIONS OF SEC. 50C(3) OF THE ACT AFTER PROVIDIN G ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER, 2016. SD/- SD/- (RAJENDRA) (C.N. PRASAD ) ' / ACCOUNTANT MEMBER $ %' /JUDICIAL MEMBER MUMBAI; (' DATED 23 RD SEPTEMBER, 2016 . % . ./ RJ , SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ) ( ) / THE CIT(A)- 4. ) / CIT 5. *+ ,%%-. , -.! , / DR, ITAT, MUMBAI 6. , /01 / GUARD FILE. / BY ORDER, *% //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI