Anupama Ashok Kulkarni, Pune V. Income-Tax Officer, Ward 12(1), Pune

ITA 922/PUN/2022

AI Insights

The case involves Anupama Ashok Kulkarni, the appellant, who appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment of capital gains on the sale of immovable property. The Assessing Officer (AO) had initially adopted a higher sale consideration for the property than what was apparent, invoking section 50C of the Income-tax Act, 1961. The appellant contested this valuation and requested a DVO assessment, which was agreed upon but proceeded without waiting for the DVO's report due to time constraints. The CIT(A) confirmed the AO's assessment without adequately addressing the appellant's objections to the DVO's valuation method. The Tribunal found this process to be against the principles of natural justice and remanded the case back to the CIT(A) for a thorough reconsideration of the valuation objections.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301458 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 18-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Capital Gains
• Section: 148; 139; 143(3); 50C; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपीऱ सं. / ITA No.922/PUN/2022 ननधधारण वषा / Assessment Year : 2012-13 Anupama Ashok Kulkarni 33, Sopan Nagari, 323 Navi Peth, Pune – 411030 PAN: AQOPK0838N .......अऩीऱधथी / Appellant बनाम / V/s. The Income Tax Officer, Ward 12(1), Pune ......प्रत्यथी / Respondent Assessee by : Shri Kishore Phadke Revenue by : Shri Ganesh Rath, JCIT स ु नवधई की तधरीख / Date of Hearing : 30-05-2023 घोषणध की तधरीख / Date of Pronouncement : 30-05-2023 आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 19.10.2022 passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Briefly, the facts of the case are as under: The appellant is an individual deriving income under the head ‘Capital Gains’. No voluntary income under the provisions of section 139 of the Act was filed by the appellant. However, the Assessing Officer, Ward 12(1), Pune (hereinafter referred to as ‘the AO') on receipt of information 2 ITA No.922/PUN/2022 Anupama Ashok Kulkarni that the appellant sold an immovable property during the previous year relevant to the year under consideration for a consideration of Rs.98,34,000/- issued a notice u/s 148 of the Act on 22.03.2019. In response to the said notice, the appellant filed return of income declaring income of Rs.1,62,680/-. 3. Against the said return of income, assessment was completed by the AO vide order dated 18.12.2019 passed u/s 143(3) r.w.s. 147 of the Act at a total income of Rs.12,57,204/-. While doing so, the AO adopted the sale consideration of the property sold at Rs.98,34,000/- as against the apparent consideration of Rs.25,15,000/- invoking the provisions of section 50C of the Act and accordingly computed the capital gains on the share of property and made addition of Rs.10,94,524/-. The appellant also objected the adoption of sale consideration of Rs.98,34,000/- and objected that the fair market value of the property does not exceed the apparent consideration and requested the AO to refer the matter to the DVO for determination of the fair market value. The AO had agreed to the request of the assessee to refer the matter to the DVO and since the DVO’s report was awaited, the AO had proceeded with the assessment as the assessment was getting barred by the limitation. 4. Being aggrieved with the above order, an appeal was filed before the CIT(A). During the course of proceedings before the CIT(A), the DVO’s report had been submitted. The appellant had objected to the method of valuation, adopted by the DVO before the CIT(A). The CIT(A) without considering the objections raised before him on the DVO’s report had 3 ITA No.922/PUN/2022 Anupama Ashok Kulkarni merely confirmed the assessment order, which in my considered opinion is against the principles of natural justice. Accordingly, the matter is remanded to the file of CIT(A) with a direction that he should consider the objections raised by the appellant on the method of valuation adopted by the DVO. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 30 th May, 2023. Sd/- INTURI RAMA RAO ACCOUNTANT MEMBER ऩ ु णे / Pune; ददनधांक / Dated : 30 th May, 2023 GCVSR आदेश की प्रतिलऱपप अग्रेपिि/Copy of the Order is forwarded to : 1. अऩीऱधथी / The Appellant; 2. प्रत्यथी / The Respondent; 3. 4. The concerned Pr.CIT ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ऩ ु णे “SMC” / DR ‘SMC’, ITAT, Pune; 5. गधर्ा पधईऱ / Guard file. आदेशधन ु सधर / BY ORDER, //सत्यधवऩत प्रनत// True Copy// वररष्ठ ननजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण, ऩ ु णे / ITAT, Pune