M/s Rotex Engineers, RAJKOT-GUJARAT V. The Income Tax Officer, Wd-2(3), RAJKOT-GUJARAT

ITA 690/RJT/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9044 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 03-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: USHA N SHROTE
• Assessee Lawyers: CHETAL AGARWAL
• Keywords: Sale consideration of property below Jantri Value; Opportunity of being heard; Assessment record
• Section: 143(3); 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AH MEDABAD] (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 690/RJT/2014 (ASSESSMENT YEAR: 2008-09) M/S ROTEX ENGINEERS, LILAVATI, 4, PUJARA PLOT, RAJKOT-360001 V/S INCOME-TAX OFFICER, WARD- 2(3), RAJKOT (APPELLANT) (RESPONDENT) PAN: AACFR 4568A APPELLANT BY : SHRI CHETAL AGARWAL, A.R. RESPONDENT BY : MS. USHA N. SHROTE, SR. D.R. ( )/ ORDER DATE OF HEARING : 31-05-201 7 DATE OF PRONOUNCEMENT : 05 -06-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. WITH THIS APPEAL, THE ASSESSEE HAS CHALLENGED THE C ORRECTNESS OF THE ORDER OF THE LD. CIT(A)-III, RAJKOT DATED 13.10.2014 PERT AINING TO A.Y. 2008-09. ITA NO. 690/ RJT/2014 . A.Y. 2008-09 2 2. THE GRIEVANCE OF THE ASSESSEE READS AS UNDER:- 1.0 LD. COMMISSIONER OF INCOME TAX (APPEALS)-III, RAJKO T HAS ERRED IN LAW AND ON FACTS IN HOLDING THE VIEW THAT THE SATAKHAT DATED 30.03.2 001 EXECUTED ON A STAMP PAPER OF RS. 100/-, AN UNREGISTERED ONE, IS INVALID IN EYE OF LAW; 1.1 LD. COMMISSIONER OF INCOME-TAX (APPEALS)-III, R AJKOT HAS ERRED IN LAW AND ON FACT IN HOLDING THE VIEW THAT THE APPELLANT WAS BARRED F ROM TRANSFERRING THE RIGHTS IN THE ENCUMBERED PROPERTY TO IN FAVOUR OF THIRD PARTY ; 2.0 LD. COMMISSIONER OF INCOME-TAX (APPEALS)-III, RAJKO T HAS ERRED IN LAW AND ON FACT IN HOLDING THE VIEW THAT THE DECISION OF THE HON'BL E SUPREME COURT IN THE CASE OF SANJEEV LAL ETC. VS CIT (2014) 269 CTR (SC) 1 HAS N O RELEVANCE; 2.1 LD. COMMISSIONER OF INCOME-TAX (APPEALS)-III, R AJKOT HAS ERRED IN LAW AND ON FACT IN HOLDING THE VIEW THAT THE DECISION OF THE HON'BL E I.T.A.T., VISHAKHAPATTANAM IN THE CASE OF M. SHIVA PARVATHI & OTHRS VS. ITO (2011 ) 7 ITR 468 HAS NO RELEVANCE; 3.0 LD. COMMISSIONER OF INCOME-TAX (APPEALS)-III, RAJKO T HAS ERRED IN LAW AND ON FACT IN HOLDING THE VIEW THAT THE EFFECTIVE TRANSFER IS THE DATE ON WHICH THE FINAL SALE DEED WAS EXECUTED AND THE PROVISIONS OF SECTION 50C OF THE INCOME-TAX ACT, 1961 WERE APPLICABLE; 3.1 LD. COMMISSIONER OF INCOME-TAX (APPEALS)-III, R AJKOT HAS ERRED IN LAW AND ON FACT IN SUSTAINING THE ADDITION U/S 50C OF THE INCOME-T AX ACT, 1961 OF RS. 34,23,677/-. THE IMPUGNED ADDITION MAY KINDLY BE DELETED AND JUS TICE BE DONE; 3. THE ASSESSEE HAS RAISED FOLLOWING ADDITIONAL GROUND : 1. LD. A.O. ERRED IN LAW AS WELL AS ON FACT IN PASSING ORDER U/S. 143(3) R.W.S. 147 WITHOUT ISSUING MANDATORY NOTICE U/S. 143(2) OF THE ACT. 4. A PERUSAL OF THE AFORE-STATED ADDITIONAL GROUND SHO WS THAT IT GOES TO THE ROOT OF THE MATTER AND THE SAME HAS TO BE DECIDED F IRST BUT SINCE THE SAME WAS NEVER RAISED BEFORE THE FIRST APPELLATE AUTHORI TY AND WAS, THEREFORE, NOT CONSIDERED BY HIM. SINCE, THE ASSESSEE IS CHALL ENGING THE VERY ISSUE OF THE SERVICE OF NOTICE U/S. 143(2) OF THE ACT; THE S AME IS REQUIRED TO BE VERIFIED BY GOING THROUGH THE ASSESSMENT RECORDS. W E, THEREFORE, RESTORE THE ENTIRE ISSUE TO THE FILES OF THE LD. CIT(A). TH E LD. CIT(A) IS DIRECTED TO ITA NO. 690/ RJT/2014 . A.Y. 2008-09 3 DECIDE THIS ISSUE AFTER GIVING A REASONABLE AND FAI R OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND AFTER EXAMINING THE RELEV ANT ASSESSMENT RECORDS. WE ORDER ACCORDINGLY. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 05 - 06 - 2017 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED: 05/06/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKO T