Sadhna Saxena, Shimla V. ITO, Ward-2, Shimla

ITA 99/CHANDI/2022

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0014 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 21-02-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRAVESH SHARMA
• Keywords: Sale consideration of property below Jantri Value; Cost of acquisition; Capital Gains
• Section: 50C

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठच瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठ , च瀃डीगढ़ च瀃डीगढ़च瀃डीगढ़ च瀃डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर आयकरआयकर आयकर अपील अपीलअपील अपील सं संसं सं./ ITA No. 99/CHD/2022 Assessment Year : 2013-14 Sadhna Saxena, House No. 3, Housing Board Colony, Kelson Estate, Shimla (HP). बनाम VS The ITO, Ward-2, Shimla. 瀡थायी लेखा सं./PAN /TAN No: AVMPS1526L अपीलाथ牸/Appellant 灹瀄यथ牸/Respondent िनधा榁琇रती क琉 ओर से/Assessee by : Shri Pravesh Sharma, Advocate राज瀡व क琉 ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR तारीख/Date of Hearing : 23.06.2022 उदघोषणा क琉 तारीख/Date of Pronouncement : 06.07.2022 आदेश आदेशआदेश आदेश/ORDER PER DIVA SINGH The present ap peal has bee n file d by the assesse e whe rein the correctness of the or der d ate d 24. 12.202 1 of NF A C ( i . e . N a t i o n a l F a c e l e s s A p p e a l C e n t r e ) D e l h i a c t i n g a s F ir s t A p p e l l a te A u t h o r i t y p e r t a i n i n g t o 2 0 1 3 - 1 4 a s s e s s m e n t ye a r i s a s s a i l e d on t h e f o l l o w i n g g r ou n d s : 1. The Ld. CIT(A) has erred in law and on facts by violating the "audi alteram partem" Rule of Natural Justice, by not granting proper opportunity to the assessee regarding long-term capital gains and made an addition of Rs. 1,12,80,747 purely on conjecture & surmises. 2. The Ld .CIT(A) has passed impugned order ex-parte without affording a reasonable and appropriate opportunity to the assessee who is a senior citizen and more than 75 years old and fixed hearing at the peak of the Covid Pandemic. ITA 99 /CHD/2022 A.Y. 2013-14 Page 2 of 6 3. The Ld CIT(A) has erred on facts and in law passing an Ex-parte Order ignoring all the material facts and evidences on record. 4. The Ld. CIT(A) has erred on facts by confirming the order of the Assessing officer by attributing the entire long term capital gains to the assessee, without appreciating that the 75 years old assessee was only l/3rd owner of the property and her two daughters were co-owners of the property. Therefore only l/3rd capital gains could be attributed to her. This fact was not examined. 5. The Ld. CIT(A) has erred both in law and on facts by confirming the addition of Rs. 1,12,80,747/- on account of long-term capital gains without by making presumptive estimates of the cost of acquisition and cost of construction without bringing any material evidence on record. 6. The Ld. CIT(A) has erred both in law and on facts by confirming the order of order of Ld A.O in determining the cost of acquisition at Rs. 23,277 without any evidence and ignored the actual cost incurred by the owners. The AO also erred in entirely ignoring the costs incurred on the improvements of the property in violation of section 49 of the Income Tax Act, 1961. 7. The Ld. CIT(A) has erred both in law and on facts by confirming the order of Ld. A.O in making an adhoc estimate of the sale value of the property purely on conjectures and by invoking the provision of section 50C of the Act without bringing any evidence on record to show that the property was sold at lower value. 8. The Ld. CIT(A) has erred both in law and on facts by confirming the addition by not appreciating that assessee has paid Rs. 3,36,000 directly to HUDA and this, should be reduced from sale consideration. 9. The Ld CIT(A) AO erred in levying interest u/s.234B & 234C o f the Act. 10. The learned AO erred in initiating penalty proceedings u/s. 271(l)(c) of the Act. 11. The above grounds are without prejudice to one another, and the assessee appellant craves leave to add/amend/delete any grounds taken above at the time of hearing. 2 . T h e l d . A R w a s r e q u i r e d t o a d d r e s s t h e f a c t u m o f n o n - r e p r e s e n t a t i o n b e f o r e t h e F i r s t A p p e l l a t e A u t h o r i t y a d d r e s s e d v i d e G r o u n d N o . 3 i n t h e p r e s e n t a p p e a l . I n r e s p o ns e t h e r e t o , a t t e n t i o n w a s i n v i t e d t o p a r a 3 o f t h e i m pu g n e d o r d e r a n d i t w a s s u b m i t t e d t h a t d u r i n g t h e p e a k C o v i d c o nd i t i o n s , ITA 99 /CHD/2022 A.Y. 2013-14 Page 3 of 6 t h e h e a r i n g s t o o k p l a c e v i a e - p o r t a l . T h e s e c o u l d no t b e a c c e s s e d t o b y t h e a s s e s s e e a n d c o n s e q u e n t l y w e r e no t r e s p o n d e d t o o n a c c o u n t o f t h i s i n a b i l i t y . A c c o r d in g l y , i t w a s h i s p r a y e r t h a t s i n c e t h e o r d e r h a s b e e n p a s s e d w i th o u t h e a r i n g t h e a s s e s s e e , s a i d o p p o r t u n i t y m a y b e p r o v id e d b y r e m a n d i n g b a c k t h e i s s u e . A c c o r d i n g l y , a p r a y e r f o r r e m a n d b a c k w a s m a d e . E l a b o r a t i n g t h e r e q u e s t , i t w a s h i s s u b m i s s i o n t h a t f u l l f a c t s c o u l d n o t b e p l a c e d b y th e a s s e s s e e e v e n b e f o r e t h e A O . Th e a g e d a s s e s s e e w i d o w p o s s i bl y o n a c c o u n t o f h e r i g n o r a n c e , f a i l e d t o b r i n g a l l n e c e ss a r y f a c t s o n r e c o r d , a c c o r d i n g l y , r e m a n d b a c k t o t h e A O w a s pr a y e d f o r . 3 . T h e l d . S r . D R s u b m i t t e d t h a t t o t h e e x t e n t o f r em a n d b a c k t o t h e C I T ( A ) , s h e w o u l d h a v e n o o b j e c t i o n a s a p p a r e n t l y t h e a s s e s s e e a d m i t t e d l y h a s n o t b e e n h e a r d . H o w e v er , r e m a n d b a c k t o t h e A O , i t w a s h e r p r a y e r i s n o t w a rr a n t e d a s t h e a s s e s s e e h a s f u l l y p a r t i c i p a t e d i n t h e p r o c e e d p r o c e e d i n g s b e f o r e t h e A O . 4 . I n t h e f a c e o f t h e a b o v e d e p a r t m e n t a l i n i t i a l o bj e c t i o n s , b o t h t h e p a r t i e s w e r e h e a r d a t l e n g t h o n t h e i s s u e a s t o w h i c h a u t h o r i t y t h e r e m a n d b a c k s h o u l d b e d i r e c t e d . ITA 99 /CHD/2022 A.Y. 2013-14 Page 4 of 6 5 . A p e r u s a l o f t h e r e c o r d s h o w s t h a t t h e l d . C I T ( A) i n t h e a b s e n c e o f a n y r e p r e s e n t a t i o n o n t h e p a r t o f t h e a ss e s s e e p a s s e d t h e f o l l o w i n g o r d e r : “4. The facts narrated by the AO in the assessment order have been carefully considered. It is evident therefrom that the AO had conducted detailed enquiries with regard to cost of land and building construction cost during re-assessment proceedings and confronted the appellant from time to time with his findings and proposals to re-work the capital gains by adopting costs as Rs 23,277/- and Rs 10 lakhs respectively. Regarding the year of construction also, the AO made an appropriate finding and took it as FY 2011-12 instead of FY 1988-89 as claimed by the appellant. Further, the AO also confronted the appellant with a proposal to invoke provisions of section 50C and adopt stamp duty value as deemed sale consideration for computing long term capital gains. Against this proposal, the appellant merely stated that the said property was sold on power of attorney through property dealer but no explanation was filed as to why 50C provisions are not attracted in her case. In summary, it can be stated that the AO had elaborately dealt with the reasons for re-working of the capital gains after following principles of natural justice. Now, onus lies on the appellant to prove where the AO had gone wrong in assessment of long term capital gains as worked out by him. On the other hand, appellant had miserably failed in this respect despite being offered number of opportunities during the current appellate proceedings. Therefore, there is no reason to interfere with the order passed by the AO. The addition of LTCG as worked out by the AO is accordingly sustained. 6 . I n g r o u n d N o . 2 r a i s e d b e f o r e u s , t h e a s s e s s e e ha s a s s a i l e d t h e o r d e r o n t h e g r o u n d s o f l a c k o f o p p o r tu n i t y a n d s i m u l t a n e o u s l y p l e a d e d t h a t a s s e s s e e i s a s e n i o r c it i z e n . P e r u s a l o f t h e i m p u g n e d a s s e s s m e n t o r d e r s h o w s t h a t t h e p r o p e r t y u n d e r c o n s i d e r a t i o n w a s i n t h e n a m e o f S h ri S u r e s h C h a n d e r S a x e n a a n d a f t e r h i s d e m i s e , t h e a s s e s s e e ’ s w i d o w a n d t h e l e g a l h e i r s c a m e i n t o t h e p i c t u r e . A p e r u s al o f t h e s u b m i s s i o n s a s a d v a n c e d b e f o r e t h e A O , i t i s s e e n , d o n o t ITA 99 /CHD/2022 A.Y. 2013-14 Page 5 of 6 m a k e a n y m e n t i o n o f a l l t h e l e g a l h e i r s . T h e s t a t us o f t h e d a u g h t e r s o f t h e a s s e s s e e a s c o - o w n e r s , a c c o r d i n g l y, d o e s n o t h a v e d i s c u s s i o n i n t h e o r d e r s . T h i s i s s u e i s r a i s ed b e f o r e u s b y w a y o f g r o u n d N o . 4 . I n t h e a b s e n c e o f a n y r e l ev a n t d i s c u s s i o n o n t h i s i s s u e , t h e f a c t s w i l l b e r e q u i r ed t o b e v e r i f i e d a n d e x a m i n e d f i r s t b y t h e A O . A c c o r d i n g l y, a f t e r h e a r i n g t h e l d . D R w h o u l t i m a t e l y c o n s i d e r i n g t h e s e f a c t s , t h o u g h p l e a d e d t h a t t h i s w a s n o t t h e a r g u m e n t b e f o re t h e A O , u l t i m a t e l y s u b m i t t e d t h a t i f t h i s f a c t n e e d s t o b e e x a m i n e d , t h e n i t n e e d s t o b e e x a m i n e d a t t h e s t a g e o f t h e A O. A c c o r d i n g l y , a f t e r h e a r i n g t h e p a r t i e s , i t i s d e e m ed a p p r o p r i a t e t o s e t a s i d e t h e i m p u g n e d o r d e r b a c k t o t h e f i l e o f t h e A O . 7 . W h i l e s o d i r e c t i n g , t h e l d . A R g a v e h i s o r a l u n d e r s t a n d i n g s t a t i n g t h a t h e s h a l l e n s u r e t h a t t h e a s s e s s e e s h a l l p a r t i c i p a t e i n t h e p r o c e e d i n g s b e f o r e t h e A O f u l l y a n d f a i r l y . A c c e p t i n g t h e o r a l u n d e r t a k i n g a n d t a k i n g i n t o c o n s i d e r a t i o n t h e f a c t u a l m a t r i x o f t h e p r e s e n t c a se w h i c h n e e d s t o b e e x a m i n e d , w e s e t a s i d e t h e i m p u g n e d o r de r a n d r e s t o r e t h e i s s u e s b a c k t o t h e f i l e o f t h e A O w i t h a d i r e c t i o n t o p a s s a s p e a k i n g o r d e r i n a c c o r d a n c e w i t h l a w a f te r g i v i n g t h e a s s e s s e e a r e a s o n a b l e o p p o r t u n i t y o f b e i n g h e a rd . W h i l e s o d i r e c t i n g , i t i s m a d e c l e a r t h a t i n t h e e v e n t u a li t y o f a b u s e ITA 99 /CHD/2022 A.Y. 2013-14 Page 6 of 6 o f t h e t r u s t p l a c e d u p o n t h e a s s e s s e e b y a v o i d i n g a f a i r r e p r e s e n t a t i o n , t h e A O s h a l l b e a t l i b e r t y t o p a s s a n o r d e r o n t h e b a s i s o f t h e m a t e r i a l a v a i l a b l e o n r e c o r d . S a id o r d e r w a s p r o n o u n c e d i n t h e O p e n C o u r t a t t h e t i m e o f h e a r i n g i t s e l f . 8 . I n t h e r e s u l t , a p p e a l o f t h e a s s e s s e e i s a l l o w e d f o r s t a t i s t i c a l p u r p o s e s . O r d e r p r o n o u n c e d o n 6 t h J u l y , 2 0 2 2 . S d / - S d / - (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा लेखालेखा लेखा सद瀡य सद瀡यसद瀡य सद瀡य/ Accountant Member 瀈याियक 瀈याियक瀈याियक 瀈याियक सद瀡य सद瀡यसद瀡य सद瀡य/ Judicial Member “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. आयकर आयु猴 (अपील)/ The CIT(A) 5. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar