Smt. Sarika Nema, Narshingpur V. Deputy Commissioner of Income Tax, Jabalpur

ITSSA 6/JAB/2020

• Counselvise Citation: [2020] 109 COUNSELVISE.COM (IT) 9505 (ITAT-JABALPUR)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 21-10-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Fair market value; Valuation report
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI NRS GANESAN, JUDICIAL MEMBER & SANJAY ARORA, ACCOUNTANT MEMBER ITA NO.06/JAB/2020 ASSESSMENT YEAR 2016-17 SMT. SARIKA NEMA MAHAJANI WARD, NARSINGHPUR, MADHYA PRADESH-487001. (PAN : AFIPN 1621F) VS. DCIT CENTRAL, RAMNATH BUILDING, OPP. BHAWARTAL GARDEN, JABALPUR, M.P.-482001 (APPELLANT ) (RESPONDENT) APPELLANT BY SHRI RAHUL BARDIA, CA RESPONDENT BY SHRI U.B. MISHRA, C.I.T.-DR- JOINED VIRTUAL HEARING FROM BHOPAL. DATE OF HEARING 28/12/2020 DATE OF PRONOUNCEMENT 29/12/2020 ORDER PER NRS GANESAN, JM: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-3, BHOPAL [FOR SHORT, THE CIT(A)] AND PERTAINS TO ASSESSMENT YEAR 21016-17. THE ONLY ISSUE ARISES FOR CONSIDERATION IS COMPUTATION OF CAPITAL GAIN ON SAL E OF LANDED PROPERTY. 2. SHRI RAHUL BARDIA, REPRESENTATIVE FOR THE ASSESS EE SUBMITTED THAT A SEARCH WAS CONDUCTED ON 27.12.2016. A SALE-DEED DAT ED 24.07.2015 WAS ITA NO. 06 JAB 2020-SMT. SARIKA NEMA 2 SAID TO BE FOUND BY THE REVENUE AUTHORITIES FOR SAL E OF PROPERTY. ACCORDING TO LD. REPRESENTATIVE FOR THE ASSESSEE, THE PROPERT Y WAS SOLD FOR A CONSIDERATION OF RS.6,00,000/-, HOWEVER, THE REGIST RATION AUTHORITIES FOR THE COLLECTION OF STAMP DUTY VALUED THE PROPERTY OF RS. 27,36,500/-. THE ASSESSEE OBJECTED THE VALUATION BY REGISTRATION AUT HORITIES BEFORE THE ASSESSING OFFICER AND CIT(A), HOWEVER, WITHOUT REFE RRING THE MATTER TO THE VALUATION OFFICER AS PROVIDED IN SECTION 50C(2) OF THE ACT, THE ASSESSING OFFICER ADOPTED THE SALE CONSIDERATION AS RS. 27,36,500/- FOR COMPUTATION OF CAPITAL GAIN. INFACT, THE ASSESSING OFFICER HAS TAKEN THE ENTIRE SALE CONSIDERATION AS CAPITAL GAIN FOR LEVY OF TAX. ACCORDING TO LD. REPRESENTATIVE, THE ASSESSING OFFICER OUGHT TO HAVE REFERRED THE MATTER TO THE VALUATION OFFICER, SINCE THE ASSESSEE SPECIFICA LLY OBJECTED THE ADOPTION OF VALUE TAKEN BY THE REGISTRATION AUTHORITIES FOR STAMP DUTY. 3. ON THE CONTRARY, SHRI U.B. MISHRA, C.I.T.-DR, WH O JOINED THE VIDEO CONFERENCE FROM BHOPAL, SUBMITTED THAT STAMP DUTY V ALUE WAS RS. 27,36,500/-, THEREFORE, THE ASSESSING OFFICER HAS R IGHTLY ADOPTED THE SAME FOR COMPUTING THE CAPITAL GAIN. THE CIT(A) ALSO HAS RIGHTLY CONFIRMED THE ORDER OF THE ASSESSING OFFICER. ON A QUERY FROM THE BENCH THAT WHEN THE ASSESSEE SPECIFICALLY OBJECTED FOR ADOPTION OF THE VALUE TAKEN BY THE REGISTRATION AUTHORITIES FOR COLLECTION OF STAMP DU TY, WHY THE VALUATION WAS NOT REFERRED TO THE VALUATION OFFICER, THE DEPARTME NTAL REPRESENTATIVE ITA NO. 06 JAB 2020-SMT. SARIKA NEMA 3 SUBMITTED THAT THE ASSESSING OFFICER ADOPTED THE VA LUE TAKEN BY THE REGISTRATION AUTHORITIES FOR COLLECTION OF STAMP DU TY. ON A FURTHER QUERY FROM THE BENCH WHY THE MATTER SHALL NOT BE REFERRED TO THE VALUATION OFFICER BY REMANDING THE ENTIRE ISSUE TO THE FILE O F ASSESSING OFFICER, THE DEPARTMENTAL REPRESENTATIVE VERY FAIRLY SUBMITTED T HAT HE MAY NOT HAVE ANY OBJECTION FOR REFERRING THE MATTER TO THE VALUA TION OFFICER AS PROVIDED IN SECTION 50C(2) OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSION ON EITHE R SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE SALE OF PROPERTY IS NOT IN DISPUTE. THE ASSESSEE CLAIMED THAT THE MARKET VALUE OF THE PROPERTY WAS RS. 6,00,000/-. IT IS ALSO NOT IN DISPUTE THAT THE REGI STRATION AUTHORITIES FOR COLLECTION OF STAMP DUTY ADOPTED THE VALUE OF RS. 2 7,36,500/-. THE ASSESSEE FROM THE BEGINNING OBJECTING FOR ADOPTING THIS VALU E UNDER SECTION 50C OF THE ACT. WHEN THE ASSESSEE WAS OBJECTING FOR ADOPTI ON OF THE VALUE TAKEN BY THE REGISTRATION AUTHORITIES, THIS, TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSING OFFICER IS BOUND TO REFER THE MA TTER TO THE VALUATION OFFICER UNDER SECTION 50C(2) OF THE ACT. IT IS MADE CLEAR THAT WHEN THE ASSESSEE OBJECTED SPECIFICALLY FOR ADOPTION OF THE VALUE TAKEN BY THE REGISTRATION AUTHORITIES, FOR COLLECTION OF STAMP D UTY, IT IS MANDATORY FOR THE ASSESSING OFFICER TO REFER THE MATTER TO THE VALUAT ION OFFICER. SINCE SUCH AN EXERCISE WAS NOT DONE BY THE ASSESSING OFFICER, THIS TRIBUNAL IS UNABLE ITA NO. 06 JAB 2020-SMT. SARIKA NEMA 4 TO UPHOLD THE ORDERS OF AUTHORITIES BELOW. ACCORDIN GLY, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET-ASIDE AND THE ESTIMAT E OF VALUE OF THE PROPERTY FOR CAPITAL GAIN IS REMANDED BACK TO THE FILE OF AS SESSING OFFICER. THE ASSESSING OFFICER SHALL REFER THE MATTER TO THE VAL UATION OFFICER FOR ESTIMATING THE FAIR MARKET VALUE AND THEREAFTER DEC IDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER GIVING A REASONABLE OPPOR TUNITY TO THE ASSESSEE. IT IS ALSO MADE CLEAR THAT THE ASSESSING OFFICER SH ALL FURNISH THE COPY OF THE VALUATION REPORT TO THE ASSESSEE BEFORE THE DATE OF HEARING THAT MAY BE FIXED BY HIM. 5. WITH THE ABOVE OBSERVATION, THE APPEAL OF THE AS SESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 29 TH DECEMBER 2020. SD/- SD/- (SANJAY ARORA) (N.R.S.GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29/12/2020 //TRUE COPY//