Shri Baney Singh Gurjar Byepass Road, Manpur, Gangapur City, Distt- Sawai Madhopur, Sawai Madhopur V. ITO Ward-2, Sawai Madhopur, Sawai Madhopur

ITA 971/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8488 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 18-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Opportunity of being heard; Cost of acquisition; Fair market value; Set aside
• Section: 50C; 48; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 970/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 SHRI SHADHU LAL GURJAR BYEPASS ROAD, MIRJAPUR GANGAPUR CITY, SAWAI MADHOPUR. CUKE VS. THE ITO, WARD-3, SAWAI MADHOPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AOHPL 1180 M VIHYKFKHZ@ A PPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 971/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 SHRI BANEY SINGH GURJAR BYEPASS ROAD, MANPUR GANGAPUR CITY, SAWAI MADHOPUR. CUKE VS. THE ITO, WARD-2, SAWAI MADHOPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: GNXPS 8312 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 972/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 SHRI GAJANAND GURJAR VILLAGE- MAHANANDPUR, GANGAPUR CITY, SAWAI MADHOPUR. CUKE VS. THE ITO, WARD-3, SAWAI MADHOPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: BTMPG 9543 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE JKTLO DH VKSJ LS @ REVENUE BY : MISS CHANCHAL MEENA (ADDL.CIT) ITA NO. 970 TO 972/JP/2019 SHRI SHADHU LAL GURJAR VS. ITO 2 LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 09/07/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 10/07/2020 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THESE THREE APPEALS BY RELATED ASSESSEES ARE DIREC TED AGAINST THREE SEPARATE ORDERS OF LD. CIT(A), KOTA ALL DATED 25.03.2019 FOR THE ASSESSMENT YEAR 2011-12. DUE TO PREVAILING COVID-19 PANDEMIC CONDITION THE HEARING OF THE APPEAL IS CONCLUDED TH ROUGH VIDEO CONFERENCE. THE ASSESSEES HAVE RAISED COMMON GROUND S IN THESE APPEALS EXCEPT QUANTUM OF ADDITION ON ACCOUNT OF LO NG TERM CAPITAL GAIN BY INVOKING PROVISIONS OF SECTION 50C OF THE I T ACT. THE GROUND RAISED IN ITA NO. 970/JP/2019 ARE AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) HAS ERRED IN NOT GIVING AN APPROPR IATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE PASSI NG THE ORDER. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ADDITI ON OF STAMP DUTY VALUE AS CAPITAL GAIN WITHOUT CONSIDERING THE F ACTS AND CIRCUMSTANCES OF THE ASSESSEE CASE AND CAUSING UNDUE HA RDSHIP ON ASSESSEE. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING AO ADDITIO N OF ENTIRE DLC VALUE OF RS. 12,19,680/- AS INCOME OF LONG TERM CAPITAL GAIN WITHOUT CONSIDERING COST OF PURCHASE AND ITS INDE XATION. ITA NO. 970 TO 972/JP/2019 SHRI SHADHU LAL GURJAR VS. ITO 3 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEES DES PITE NOTICE SENT TO THE ASSESSEE THROUGH E-MAIL. IT TRANSPIRED FROM THE RECORD THAT EVEN THE ASSESSEES DID NOT APPEAR EITHER BEFORE THE AO O R BEFORE THE LD. CIT(A) AND CONSEQUENTLY THE AO AS WELL AS LD. CIT(A ) HAVE PASSED EX- PARTE ORDERS. HENCE, WE PROPOSED TO HEAR AND DISPOS ED OFF OF THESE THREE APPEAL EX-PARTE BY THIS COMPOSITE ORDER. 3. WE HAVE HEARD THE LD. DR AND CAREFULLY PERUSED T HE ORDERS OF THE AUTHORITIES BELOW. IN THESE THREE APPEALS THE ASSES SEES HAVE SOLD AGRICULTURAL LAND FOR THE CONSIDERATION SHOWN IN TH E SALE DEED HOWEVER, THE AO REOPENED THE ASSESSMENT BY ISSUING NOTICE U/ S 148 OF THE ACT TO ASSESS THE LONG TERM CAPITAL GAIN BASED ON THE VALU ATION ADOPTED BY THE STAMP DUTY AUTHORITY AND THEREBY INVOKING THE PROV ISIONS OF SECTION 50C OF THE IT ACT. WE FURTHER NOTE THAT THE ASSESSI NG OFFICER HAS ASSESSED THE ENTIRE SALE CONSIDERATION WHICH IS DEE MED FULL VALUE CONSIDERATION U/S 50C OF THE ACT AND THEREFORE, THE AO HAS NOT ALLOWED ANY DEDUCTION ON ACCOUNT OF COST OF ACQUISITION OR OTHER DEDUCTIONS U/S 48 OF THE ACT DUE TO THE REASONS THAT NONE HAS APPE ARED ON BEHALF OF THE ASSESSEE DURING THE ASSESSMENT. THUS, IT IS APP ARENT THAT THE AO HAS NOT CONDUCTED ANY ENQUIRY TO ASCERTAIN THE COST OF ACQUISITION OR INDEX COST OF ACQUISITION OF THE LAND IN QUESTION A ND FURTHER, THE DATE ITA NO. 970 TO 972/JP/2019 SHRI SHADHU LAL GURJAR VS. ITO 4 AND MODE OF ACQUISITION OF THE LAND IN QUESTION BY THE ASSESSEES AND THEREBY THE FAIR MARKET VALUE, IF ANY AS ON 01.04.1 981 OR 01.04.1991 ETC. THE ASSESSEES CHALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT(A) HOWEVER, THE APPEALS OF THE ASSESSEE WERE DI SMISSED BY THE LD. CIT(A) WHILE PASSING THE IMPUGNED EX-PARTE ORDERS F OR WANT OF ATTENDANCE ON BEHALF OF THE ASSESSEE. THERE IS NO D ISPUTE THAT THE ASSESSEES ARE NOT ATTENDING THE PROCEEDINGS EITHER BEFORE THE AO OR BEFORE THE LD. CIT(A)OR EVEN BEFORE THIS TRIBUNAL H OWEVER, IT IS DUTY OF THE AO TO ASSESS THE CORRECT INCOME OF THE ASSESSEE . THEREFORE, WHEN THE ASSESSMENT ORDER ITSELF MANIFEST THAT THE AO HA S ASSESSED THE ENTIRE SALE CONSIDERATION AND THAT TOO THE DEEMED F ULL VALUE CONSIDERATION U/S 50C OF THE ACT WITHOUT ALLOWING A NY DEDUCTION ON ACCOUNT OF COST OF ACQUISITION AND OTHER DEDUCTIONS U/S 48 OF THE ACT THEN THIS MATTER REQUIRES FRESH CONSIDERATION. ACCO RDINGLY, IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST O F JUSTICE, WE SET ASIDE THESE THREE APPEALS TO THE RECORD OF THE LD. CIT(A) FOR GRANTING ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE AND THEN DECIDE THE MATTERS ON MERITS. ITA NO. 970 TO 972/JP/2019 SHRI SHADHU LAL GURJAR VS. ITO 5 IN THE RESULT, ALL THREE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10/07/2020. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 10/07/2020. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- 1. SHRI SHADHU LAL GURJAR, 2. SHRI BANEY SINGH GURJAR 3. SHRI GAJANAND GURJAR, ALL SAWAI MADHOPUR. 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD-2, SAWAI MADHOPUR ITO, WARD-3, SAWAI MADHOPUR. 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. 970 TO 972/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR