Satish Chand, Baghpat V. ITO, Baraut

ITA 8327/DEL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8821 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 31-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Sale consideration of property below Jantri Value; Capital Gains
• Section: 50C; 54

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC B ENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO.8327/DEL/2018 [A.Y 2010-11] SATISH CHAND VS. ITO S/O SH. BABURAM BARAUT R/O VILLAGE BALI, DISTT. BAGHPAT, BAGHPAT PAN NO.ADYPC6781H [APPELLANT] [RESPONDENT] DATE OF HEARING : 12.09.2019 DATE OF PRONOUNCEMENT : 16. 09.2019 APPELLANT BY : SH.SHAMSHER SINGH, ADV OCATE RESPONDENT BY : SH. S. L. ANURAGI, SR . DR ORDER PER N. K. BILLAIYA , AM : THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A)-2, MEERUT DATED 29.05.2018 PERTAINING TO A. Y. 2010-11. 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE AS SESSEE IS THAT THE CIT(A) ERRED IN DISALLOWING THE CLAIM OF D EDUCTION U/S. 54 OF THE ACT. 2 3. THE ASSESSEE IS AN AGRICULTURIST WHOSE RETURN OF INCOME WAS SELECTED FOR SCRUTINY ASSESSMENT ON THE BASIS OF AI R INFORMATION IN RELATION TO THE DEPOSIT OF RS.45.40 LACS IN HIS SAVINGS BANK ACCOUNT. 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS THE ASSESSEE EXPLAINED THAT HE HAS SOLD A PIECE OF LAND AND THE SALE CONSIDERATION WAS DEPOSITED IN THE SAVINGS BAN K ACCOUNT. 5. ASSESSING OFFICER ACCEPTED THE CONTENTION OF THE ASSESSEE THE ASSESSING OFFICER ACCEPTED THE DEPOSITS MADE IN THE SAVINGS BANK ACCOUNT BUT WAS OF THE VIEW THAT THE ASSESSEE IS LIABLE FOR LONG TERM CAPITAL GAINS AND INVOKING THE PROVISIONS OF SECTION 50C OF THE ACT, TOOK THE SALE CONSIDERATION AT THE VALUE ON WHICH STAMP DUTY WAS PAID AND ACCORDINGLY COMPUTED LTCG A T RS.430327/-. 6. ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) A ND POINTED OUT THAT THE ENTIRE SALE CONSIDERATION WAS UTILISED TOWARDS CONSTRUCTION OF HIS RESIDENTIAL HOUSE SITUATED AT V ILLAGE BALI, TEHSIL BAGHPAT AND ALSO FURNISHED THE VALUATION REP ORT OF THE GOVERNMENT VALUER AND CLAIM DEDUCTION U/S. 54 OF TH E ACT IN RESPECT OF INVESTMENT MADE IN THE RESIDENTIAL HOUSE . HOWEVER, THE LD. CIT(A) DISMISSED THE CLAIM OF THE ASSESSEE STATING THAT ASSESEE HAS NOT MADE ANY CLAIM BEFORE THE AO. 7. BEFORE ME THE COUNSEL FOR THE ASSESSEE STATED TH AT BEING AN AGRICULTURIST THE ASSESSEE WAS NOT IN THE KNOWLEDGE OF THE CLAIM OF STATUTORY DEDUCTION U/S. 54 OF THE ACT BUT WHEN HE WAS ADVISED BY THE COUNSEL HE MADE THE CLAIM BEFORE THE CIT(A). 8. THE COUNSEL PRAYED FOR CLAIM OF DEDUCTION U/S. 5 4 OF THE ACT. 9. THE DR STRONGLY SUPPORTED THE FINDINGS OF THE CI T(A). 3 10. I HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. NO DOUBT THE ASSESSEE DID NOT M AKE ANY CLAIM OF DEDUCTION U/S.54 OF THE ACT DURING THE ASSESSMEN T PROCEEDINGS. IT IS TRUE THAT THE CLAIM OF DEDUCTIO N WAS MADE FOR THE FIRST TIME BEFORE THE CIT(A) ALONGWITH SUPPORTI NG EVIDENCE. IN MY CONSIDERED OPINION THIS STATUTORY DEDUCTION SHOU LD NOT HAVE BEEN DENIED BY THE CIT(A) WITHOUT LOOKING INTO MERI TS OF THE CLAIM SUPPORTED BY DOCUMENTARY EVIDENCES. 11. I, THEREFORE, IN THE INTEREST OF JUSTICE AND FA IR PLAY RESTORE THIS ISSUE TO THE FILE OF THE AO. THE AO IS DIREC TED TO EXAMINE THE CLAIM OF DEDUCTION U/S.54 OF THE ACT AS PER THE PROVISIONS OF LAW AND DECIDE THE ISSUE AFRESH. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 16.09. 2019. SD/- [N.K. BILLAIYA] ACCOUNTANT M EMBER DATED: 16 SEPTEMBER, 2019 *NEHA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CITI 4. CIT(A) 5. DR ASST. REGISTRAR ITAT, NEW DELHI 4 DATE OF DICTATION 13.09.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 16.09.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 16.09.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS 1 6 .09.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 16.09.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 16.09.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 1 6 .09.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 16.0 9.2019 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRA R FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER