ACIT, Circle - 23(1), Hooghly V. Gopal Chandra Ghosh, Hooghly

ITA 789/KOL/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6603 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-04-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 16-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Additional evidence
• Section: 56(2)(vii)(b)

Judgement Text

ITA NO. 789/KOL/2019 ASS ESSMENT YEAR: 2015-2016 GOPAL CHANDRA GHOSH 1 IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, KOLKATA VIRTUAL COURT HEARING BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 789/KOL/2019 ASSESSMENT YEAR: 2015-2016 ASSISTANT COMMISSIONER OF INCOME TAX,.............. ................ APPELLANT CIRCLE-23(1), HOOGHLY, AAYAKAR BHAWAN, 2 ND FLOOR, G.T. ROAD, KHADINAMORE, CHINSURAH, HOOGHLY-712101 -VS.- GOPAL CHANDRA GHOSH,............................... .......................... RESPONDENT VILL. KANANADI, P.O. KANANADI, DHANIAKHALI, DIST. HOOGHLY-712302 [PAN: AGDPG0257A] APPEARANCES BY: SHRI SUPRIYO PAUL, ADDITIONAL CIT, APPEARED ON BEHA LF OF THE REVENUE NONE, APPEARED ON BEHALF OF THE ASSESSEE DATE OF CONCLUDING THE HEARING : MARCH 31, 2021 DATE OF PRONOUNCING THE ORDER : APRIL 12, 2021 O R D E R PER SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER:- THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED A GAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-6, KOL KATA DATED 10.01.2019 FOR THE ASSESSMENT YEAR 2015-16 ON THE FOLLOWING GR OUNDS:- (1) THAT THE LD. CIT(A)-6, KOLKATA ERRED ON FACTS AND L AW IN GIVING RELIEF BY ADOPTING THE VALUE MADE BY DVO AS PURCHASE CONSIDERATION INSTEAD OF STAMP DUTY. ITA NO. 789/KOL/2019 ASS ESSMENT YEAR: 2015-2016 GOPAL CHANDRA GHOSH 2 (2) THAT THE LD. CIT(A)-6, KOLKATA ERRED ON FACTS AND I N LAW FOR NON-PRODUCTION OF ADDITIONAL EVIDENCE BEFOR E THE AO AS PER INCOME TAX RULE 46A OF 1962. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE WHEN THE CASE WAS CALLED FOR HEARING. THERE IS NO PETITION FOR ADJOURNMENT O N THE PART OF THE ASSESSEE. THEREFORE, WE HAVE DECIDED TO DISPOSE OF THE APPEAL OF THE REVENUE AFTER HEARING THE LD. D.R. AND THE MATERIAL AVAILABLE ON RECORD. 3. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E. THE ASSESSING OFFICER IN THIS CASE HAS MADE AN ADDITION UNDER SEC TION 56(2)(VII) OF THE ACT AMOUNTING TO RS.3,60,85,814/- BY OBSERVING AT P AGE NO. 4 OF FIRST PARA IN HIS ASSESSMENT ORDER DATED 29.12.2017, WHICH REA DS AS UNDER:- IN THIS CASE THERE IS A DIFFERENCE OF RS.3,60,85,8 14/- BETWEEN THE PURCHASE VALUE AND STAMP DUTY VALUE. HE NCE PROVISIONS OF SEC 56(2)(VII)(B) GETS ATTRACTED IN T HIS CASE AS THE IMMOVABLE PROPERTY HAS BEEN RECEIVED AFTER 1 ST OCTOBER 2009 FOR A CONSIDERATION WHICH IS LESS THAN THE STAMP DUTY VALUE OF THE PROPERTY BY AN AMOUNT EXCEE DING FIFTY THOUSAND RUPEES. IN THIS CASE THE STAMP DUTY VALUE OF SUCH PROPERTY AS EXCEEDS SUCH PURCHASE CONSIDERATIO N IS TO BE CHARGED TO INCOME TAX UNDER THE HEAD INCOME F ROM OTHER SOURCES. HOWEVER AS PER THE 1ST PROVISO TO SU B CLAUSE (B), IF THE DATE OF AGREEMENT AND DATE OF REGISTRATION ARE NOT THE SAME THEN THE STAMP DUTY V ALUE ON THE DATE OF AGREEMENT MAY BE TAKEN FOR CALCULATI ON. THE 2ND PROVISO RESTRICTS APPLICATION OF 1ST PROVIS O TO SITUATIONS ONLY IF PAYMENT HAS BEEN MADE BEFORE DAT E OF AGREEMENT BY ANY OTHER MODE THAN CASH. THE STAMP DU TY AVAILABLE IS AS ON DATE OF REGISTRATION OF THE PROP ERTIES. THE ASSESSEE HAS ALSO DISPUTED THE MARKET VALUE AS ADOPTED BY THE STAMP VALUATION AUTHORITY DURING HEA RING ON 27.11.2017 BECAUSE OF WRONG CLASSIFICATION OF LA ND BY THE STAMP DUTY AUTHORITY. AS THE ASSESSEE HAS DISPU TED THE VALUATION, A REFERENCE WAS MADE TO THE DISTRICT VALUATION OFFICER ON 28.12.2017 FOR DETERMINING THE FAIR MARKET VALUATION OF THE SAID PROPERTIES ON DATE OF AGREEMENT. IN ABSENCE OF ANY REPLY FROM THE VALUATI ON AUTHORITY, THE MARKET VALUE AS DETERMINED BY THE ST AMP VALUATION AUTHORITY ON DATE OF REGISTRATION HAS BEE N TAKEN FOR CALCULATION. THE DIFFERENCE OF RS.3,60,85 ,814/- IS BEING ADDED AS INCOME CHARGEABLE TO TAX UNDER TH E ITA NO. 789/KOL/2019 ASS ESSMENT YEAR: 2015-2016 GOPAL CHANDRA GHOSH 3 HEAD INCOME FROM OTHER SOURCES AS PER PROVISIONS OF SEC 56(2)(VII)(B) OF THE ACT. (EMPHASIS ONLY) INCOME FROM OTHER SOURCES ADDED U/S 56(2)(VII) OF AMOUNT RS.3,60,85,814/-. 4. AS THE ASSESSEE DISAGREED WITH THE VALUATION MAD E BY THE DVO AND ENDORSED BY THE ASSESSING OFFICER, HE FILED AN APPE AL BEFORE THE LD. CIT(APPEALS), WHO VIDE HIS ORDER DATED 10.01.2019 I N PARA 4.1 OBSERVED AS UNDER:- 4.1. DURING THE APPELLATE PROCEEDINGS, THE A/R OF THE APPELLANT HAS PRODUCED COPY OF REPORT OF THE DVO DT . 06.12.2018, A COPY OF WHICH HAS ALSO BEEN ENDORSED TO ACIT, CIRCLE-23(1), HOOGHLY WHEREIN THE VALUE ON ACCUMULATED BASIS HAS BEEN ESTIMATED BY THE DVO AT RS.2,56,68,178/- AGAINST THE VALUE OF RS.4,25,45,81 4/- AS ESTIMATED BY THE STAMP VALUATION OFFICER. LIN VIEW OF THE REPORT OF THE DVO, THE AO IS DIRECTED TO MODIFY HIS ORDER AND TAKE INTO CONSIDERATION THE VALUATION DONE BY T HE DVO WHILE GIVING APPEAL EFFECT. ACCORDINGLY, GROUND S NO. 1 TO 4 OF THE APPEAL ARE PARTLY ALLOWED. 5. THE ABOVE FACT DEMONSTRATED THAT THE LD. CIT(APP EALS) HAS APPLIED THE VALUATION FIGURE ESTIMATED BY THE DEPARTMENTAL VALUATION OFFICER IN HIS REPORT DATED 06.12.2018 AND DIRECTED THE ASSESS ING OFFICER TO MODIFY HIS ORDER. WE FIND NO INFIRMITY IN SUCH ACCEPTANCE BY THE LD. CIT(A) OF THE VALUATION ESTIMATED OF THE DEPARTMENTAL VALUATION O FFICER (DVO). UNDER THESE CIRCUMSTANCES, WE FIND NO INFIRMITY IN THE OR DER OF THE LD. CIT(APPEALS) AND UPHOLD THE SAME. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON APRIL 12, 202 1. SD/- SD/- (A.T. VARKEY) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUN TANT MEMBER KOLKATA, THE 12 TH DAY OF APRIL, 2021 COPIES TO : (1) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-23(1), HOOGHLY, ITA NO. 789/KOL/2019 ASS ESSMENT YEAR: 2015-2016 GOPAL CHANDRA GHOSH 4 AAYAKAR BHAWAN, 2 ND FLOOR, G.T. ROAD, KHADINAMORE, CHINSURAH, HOOGHLY-712101 (2) GOPAL CHANDRA GHOSH, VILL. KANANADI, P.O. KANANADI, DHANIAKHALI, DIST. HOOGHLY-712302 (3) COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKAT A; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.