Naiknaware Developers P Ltd., Pune V. Deputy Commissioner of Income-Tax, Circle -1(2), Pune

ITA 920/PUN/2022

AI Insights

Naiknavare Developers Pvt. Ltd. appealed against the orders of the Commissioner of Income Tax (Appeals)-11, Pune, which were based on the assessment orders passed by the AO for the assessment years 2014-15 and 2015-16. The primary dispute was regarding the chargeability of the difference between the Stamp Duty Valuation (SDV) and the sale consideration, where the agreement fixing the value was executed prior to the transfer agreement. The assessee argued that the differential amount added by the AO was done without referring the matter to the DVO, and sought restoration of the matter to the AO for re-evaluation in light of the DVO's report. Both parties agreed to this course of action during the hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136236 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 15-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 43CA; 143(3); 250

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “ए” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “A” BENCH, PUNE BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No. 919 & 920/PUN/2022 निर्धारण वर्ा / Assessment Year : 2014-15 & 2015-16 Naiknavare Developers Pvt. Ltd., 1204/4 Ghole Rd., Shivajinagar, Pune – 411004 PAN: AACCN6706F . . . . . . . अपऩलधथी / Appellant बनाम / V/s Dy. Commissioner of Income Tax, Central Circle-1(2), Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri Kishor B. Phadke Revenue by : Shri Ramnath Murkunde सपिवधई की तधरऩख / Date of conclusive Hearing : 30/03/2023 घोर्णध की तधरऩख / Date of Pronouncement : 30/03/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; By the present appeals the assessee challenges the order of Commissioner of Income Tax (Appeals)-11, Pune [for short “CIT(A)”] dt. 21/10/2022 passed u/s 250 of the Income-tax Act, 1961 [for short “the Act”], which arose from assessment order dt. 28/12/2016 & 31/05/2016 passed u/s 143(3) by the DCIT, Central Circle- 1(2), Pune [for short “AO”] for assessment year [for short “AY”] 2014-15 & 2015-16. Naiknavare Developers Pvt.Ltd., ITA No.919 & 920/PUN/2022 A.Y. 2014-15 & 2015-16 ITAT-Pune Page 2 of 4 2. Since the substantive ground in both these appeals is identical, with the agreement of parties present, both these appeals are heard together for a consolidated order, resultantly the adjudication in ITA No. 919/PUN/2022 laid in succeeding paragraphs shall mutatis mutandis apply to ITA No. 919/PUN/2022 3. Without reproducing the grounds of appeal it shall suffice to state that, the sole and substantive ground of dispute between rival parties relates to chargeability of difference of SDV over sale consideration where agreement fixing the value was executed prior to date of transfer agreement. 4. During the course of physical hearing, the Ld. AR without going into the merits of the case, referring to additional ground raised submitted that, since the addition of differential amount stamp duty valuation over the sale consideration was carried out by the Ld. AO is without the matter being referred to Departmental Valuation Officer [for short “DVO”], the interest of justice Naiknavare Developers Pvt.Ltd., ITA No.919 & 920/PUN/2022 A.Y. 2014-15 & 2015-16 ITAT-Pune Page 3 of 4 the matter needs restoration to the file of assessing officer for de-nova consideration in the light of valuation report from DVO and material placed records. The Ld. DR without disputing the facts has candidly supported the request of the assessee. 5. After hearing to rival contentions of both the parties; and subject to the provisions of rule 18 of ITAT, Rules 1963 perused the material placed on record; without going into the merits of the case, we see no reason for dismissal of request tendered by the appellant and for the reason deem it fit to remind the matter back to the file for Ld. AO for de-nova consideration of the issue in the light of provisions of section 43CA of the Act. 6. It shall be needless to state that, while considering the matter a fresh, the Ld. AO shall accord reasonable opportunity of being heard to the assessee to represent its case and the assessee has undertaken to co-operate and comply with the direction of Ld. AO for early adjudication without seeking unreasoned adjournment. Naiknavare Developers Pvt.Ltd., ITA No.919 & 920/PUN/2022 A.Y. 2014-15 & 2015-16 ITAT-Pune Page 4 of 4 7. In the light of aforestated discussion, we remit the matter back to the file of Ld. AO for fresh adjudication in the light of provisions of section 43CA of the Act. 8. In the result, the appeal of the assessee is ALLOWED FOR STATISTCIAL PURPOSE in aforestated terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this THURSDAY 30 th day of March, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 03 rd day of April, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT (Central), Pune (MH-India) 4. The CIT(A)-11, Pune (MH-India) 5. DR, ITAT, Pune Bench ‘A’, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.