SHIVANI KHANDELWL, AJMER V. INCOME TAX OFFICER, WARD-1-2, AJMER

ITA 757/JPR/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2000 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 09-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SEEMA MEENA
• Assessee Lawyers: HARDIK V VORA
• Keywords: Sale consideration of property below Jantri Value; Corroborative evidences
• Section: 50C

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH HKKXPAN] YS[KK L NL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, A M VK;DJ VIHY LA- @ ITA NO. 757/JP/2017 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2014-15 SHIVANI KHANDEALWAL 416/27, RAM KUTIR, RAN GANJ, AJMER. CUKE VS. THE ITO, WARD-1(2) AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AZGPK 0147 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI HARDIK V. VORA (ADV.) JKTLO DH VKSJ LS @ REVENUE BY : SMT. SEEMA MEENA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 07/03/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 12/03/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 18.07.2017 OF CIT(A), AJMER FOR THE ASSESSMENT YEAR 2014-15. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- THAT UNDER THE FACTS OF THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN:- (1) APPLYING THE PROVISION OF SECTION 50C AND CONSI DERING 50C VALUE AT RS. 11491732.00 INSTEAD OF RS. 51,11,000.0 0 WHEREAS THE MATTER IS SUBJUDICIOUS IN COURT OF LAW. (2) RESTRICTING DEDUCTION U/SEC 80 TO RS. 79615.00. ITA NO. 757/JP/2017 SHIVANI KHANDELWAL VS. ITO 2 (3) ANY OTHER MATTER WITH PRIOR APPROVAL OF THE HON BLE BENCH. 2. THE ASSESSEE IS AN INDIVIDUAL AND FILED HIS RETU RN OF INCOME ON 18.02.2015 DECLARING TOTAL INCOME OF RS. 2,10,220/- . THE ASSESSEE THEREAFTER FILED A REVISED E-RETURN ON 04.07.2016 D ECLARING TOTAL INCOME OF RS. 4,30,160/-. DURING THE ASSESSMENT PROCEEDING S, THE AO NOTED THAT AS PER ITS, THE ASSESSEE HAS PURCHASED A FLAT NO. 321, SITUATED AT PLOT/ BLOCK NO. A/6 PAIKI SOUTHERN SIDE CHETAN COO PERATIVE HOUSING SOCIETY LTD, SCHEME-1, VADODARA FOR RS. 51,11,000/- ON 31.10.2013 WHEREAS THE STAMP AUTHORITY HAS VALUED THE SAID PRO PERTY AT RS. 1,14,91,732/-. THE AO ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE AS TO WHY THE MARKET VALUE ASSESSED BY STAMP DUTY AUTHORI TY SHOULD NOT BE TAKEN AS THE PURCHASE CONSIDERATION AS PER PROVISI ONS OF SECTION 56(2)(B) OF THE INCOME TAX ACT AND ASSESS AS THE SA ME INCOME FROM OTHER SOURCES. THE AO NOTED THAT NOBODY HAS ATTENDE D THE PROCEEDINGS THOUGH THE ASSESSEE FILED A LETTER ADDRESS TO THE D Y. COLLECTOR (STAMP), BADODRA FOR APPEAL AGAINST THE VALUATION FOR THE PU RPOSE OF STAMP DUTY. THE AO AFTER CONSIDERING THE WRITTEN SUBMISSIONS OF THE ASSESSEE MADE THE ADDITION OF RS. 63,80,732 U/S 56(2)(B) OF THE A CT. THE ASSESSEE CHALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT( A) HOWEVER, DESPITE VARIOUS OPPORTUNITIES GIVEN BY THE LD. CIT(A) NOBOD Y HAS ATTENDED THE ITA NO. 757/JP/2017 SHIVANI KHANDELWAL VS. ITO 3 HEARING BEFORE THE LD. CIT(A) AND THEREFORE, THE IM PUGNED ORDER WAS PASSED EX-PARTE WHEREBY THE ADDITION MADE BY THE AO WERE CONFIRMED. 3. BEFORE US, LD. AR OF THE ASSESSEE HAS SUBMITTED THAT DUE TO SHIFTING OF RESIDENCE FROM AJMER TO BADOTRA THE ASS ESSEE COULD NOT RECEIVE THE NOTICES ISSUED BY THE LD. CIT(A) IN TIM E AND THEREFORE, THERE WAS NO APPEARANCE AS BEFORE THE LD. CIT(A) ON BEHAL F OF THE ASSESSEE. HE HAS FURTHER CONTENDED THAT THE NON APPEARANCE BE FORE THE LD. CIT(A) WAS NEITHER INTENTIONAL NOR WILLFUL BUT DUE TO THE CIRCUMSTANCES AS THE ASSESSEE HAS SHIFTED FROM AJMER TO BADODRA. HE HAS FURTHER CONTENDED THAT WHEN THE ASSESSEE HAS DISPUTED THE S TAMP VALUATION ADOPTED BY THE AO THEN, THE AO WAS REQUIRED TO REFE R THE VALUATION TO THE DVO. HE HAS FURTHER CONTENDED THAT THE ONLY GRI EVANCE IN THIS APPEAL OF THE ASSESSEE IS THE ADDITION MADE BY THE AO U/S 56(2)(B) OF THE ACT DUE TO THE ADAPTATION OF THE CONSIDERATION U/S 50C OF THE ACT. THUS, THE LD. AR STATED THAT THE ANOTHER DISALLOWAN CE IS NOT DISPUTED BY THE ASSESSEE AND THEREFORE, THE MATTER OUGHT TO HAV E BEEN REFERRED TO THE DVO. THUS, HE HAS PLEADED THAT THE ASSESSEE MAY BE ONE MORE OPPORTUNITIES TO REPRESENT ITS CASE BEFORE THE LD. CIT(A). 4. ON THE OTHER HAND, LD. DR HAS SUBMITTED THAT DES PITE THE NUMBER OF OPPORTUNITIES GIVEN BY THE LD. CIT(A) NOBODY HAS APPEARED BEFORE ITA NO. 757/JP/2017 SHIVANI KHANDELWAL VS. ITO 4 THE LD. CIT(A) AND THEREFORE, IN THE ABSENCE OF ANY EXPLANATION AND OTHER DOCUMENTARY SUPPORTING EVIDENCE THE LD. CIT(A ) WAS JUSTIFIED IN SUSTAINING THE ADDITION MADE BY THE AO. THE LD. DR HAS FURTHER SUBMITTED THAT EVEN BEFORE THE AO, THE ASSESSEE DID NOT APPEAR AND ONLY WRITTEN SUBMISSIONS WERE FILED. 5. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD AT THE OUTSET, WE NOTE THAT THE LD. CIT(A) HAS GRANTED NUMBER OF OPPORTUNITIES TO THE ASSESSEE FOR ATTENDING THE HEARING AS RECORDED IN PARA 3 OF THE IMPUGNED ORDER AS UNDER:- 3.0 DURING THE COURSE OF APPELLATE PROCEEDINGS, TH E APPEAL WAS FIXED FOR HEARING ON 27.04.2017,17.05.2017,05.06.20 17, 19.06.2017, 04.07.2017 AND 18.07.2017. NO ONE HAS A TTENDED ON ANY OF THE DATE OF HEARING AND NO WRITTEN SUBMISSIO N HAS BEEN FILED. THEREFORE, THE APPEAL IS DECIDED AFTER GOING THROUGH THE ASSESSMENT ORDER AND GROUNDS OF APPEAL AS UNDER. THE MAIN GRIEVANCE OF THE ASSESSEE IN THIS MATTER I S THE ADOPTION OF THE VALUE OF THE FLAT U/S 50C OF THE ACT AND CONSEQUENT IAL ADDITION U/S 56(2)(B) OF THE ACT. HOWEVER, WE NOTE THAT ONCE THE ASSESSEE HAS FILED THE APPEAL BEFORE THE LD. CIT(A) THE ASSESSEE CANNO T TAKE A PLEA OF SHIFTING HIS RESIDENCE FROM AJMER TO BADODRA FOR NON APPEARANCE BEFORE THE LD. CIT(A). THUS, IT IS A CLEAR CASE OF CAUSAL AND NEGLIGENT CONDUCT OF THE ASSESSEE FOR NOT PURSUING THE APPEAR AND APPEARING ITA NO. 757/JP/2017 SHIVANI KHANDELWAL VS. ITO 5 BEFORE THE LD. CIT(A) AFTER FILING THE APPEAL. WE F URTHER NOTE THAT THE ASSESSEE IN THE WRITTEN SUBMISSIONS AS REPRODUCED B Y THE ASSESSING OFFICER RAISED THE OBJECTION AGAINST THE ADOPTION O F VALUE AS DETERMINED BY THE STAMP DUTY VALUATION AUTHORITY AS PER PROVIS IONS OF SECTION 50C AND CONSEQUENTIAL ADDITION U/S 56(2)(B) OF THE ACT THOUGH NO SPECIFIC REQUEST WAS MADE BY THE ASSESSEE FOR REFERENCE OF T HE MATTER TO THE DVO. ACCORDINGLY, IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ISSUE IN GROU ND NO. 1 TO THE RECORD OF THE LD. CIT(A) FOR FRESH ADJUDICATION AFTER GIVI NG ONE MORE OPPORTUNITIES TO THE ASSESSEE SUBJECT TO COST OF RS . 10,000/-. WE MAKE IT CLEAR THAT THE OPPORTUNITY GRANTED BY US SHALL S TAND VACATED IN CASE THE ASSESSEE FAILS TO APPEAR BEFORE THE LD. CIT(A) IN THE REMAND PROCEEDING. 6. GROUND NO. 2 IS REGARDING THE RESTRICTING OF DED UCTION U/S 80C. THE ASSESSEE HAS NOT FILED ANY EVIDENCE OR RECORD I N SUPPORT OF HIS CLAIM DESPITE THIS ISSUE WAS SPECIFICALLY RAISED BE FORE THE LD. CIT(A) AND THE LD. CIT(A) HAS REJECTED THE SAME ON THE GROUND THAT THE ASSESSEE HAS NOT FURNISHED ANY DOCUMENTS IN SUPPORT OF HIS C LAIM. THEREFORE, IN THE ABSENCE OF ANY SUPPORTING DOCUMENTS EVEN BEFORE US, WE DO NOT ITA NO. 757/JP/2017 SHIVANI KHANDELWAL VS. ITO 6 FIND ANY SUBSTANCE OR MERIT IN GROUND NO. 2 OF T HE ASSESSEE APPEAL, THE SAME IS DISMISSED. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12/03/2018. SD/- SD/- HKKXPAN FOT; IKY JKO (BHAGCHAND) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 12/03/2018. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHIVANI KHANDELWAL, AJMER. 2. IZR;FKHZ@ THE RESPONDENT - ITO, WARD-1(2), AJMER. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 757/JP/2017} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR