KOLKATA RESERVE BANK EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD.,KOLKATA V. I.T.O., WARD - 36(1), KOLKATA, KOLKATA

ITA 1403/KOL/2024

AI Insights

The case involves the Kolkata Reserve Bank Employees Cooperative Credit Society Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The dispute centered on whether the difference between the sale consideration of a property and its stamp duty valuation should be added as a deemed gift under section 56(2)(x) of the Income Tax Act. The Assessing Officer had added the difference of Rs.17,97,563 as a deemed gift, which the assessee contested, arguing for a valuation based on the fair market value as per section 50C. The Tribunal agreed with the assessee's position and remanded the matter back to the Assessing Officer for a proper valuation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473215 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 25-06-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Sale consideration of property below Jantri Value; Gift

Judgement Text

" ITA No. 1403/KOL/2024 (A.Y. 2018-2019) Kolkata Reserve Bank Employees Cooperative Credit Society Limited Assessment Year: 2018-2019 1 THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 1403/KOL/2024 Assessment Year: 2018-2019 Kolkata Reserve Bank Employees Cooperative Credit Society Limited,….……Appellant 13, Netaji Subhash Road, GPO, Kolkata-700001 [PAN:AABAK6244L] -Vs.- Income Tax Officer,…………………………….Respondent Ward-36(1), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, E.M. Bypass, Kolkata-700107 Appearances by: Shri Anil Kochar, Advocate, appeared on behalf of the assessee Shri Subhendu Datta, CIT (D.R.), appeared on behalf of the Revenue Date of concluding the hearing: October 24, 2024 Date of pronouncing the order: October 24, 2024 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 7th June, 2024 passed for Assessment Year 2018-19. ITA No. 1403/KOL/2024 (A.Y. 2018-2019) Kolkata Reserve Bank Employees Cooperative Credit Society Limited Assessment Year: 2018-2019 2 2. Though the assessee has taken five grounds of appeal, but the solitary issue involved in the appeal is whether the difference between the value of full consideration vis-à-vis the stamp duty value determined by the Stamp Duty Valuation Authority for the purpose of charging the Stamp, deserves to be added as deemed gift under section 56(2)(x) of the Income Tax Act. 3. With the assistance of ld. Representatives, we have gone through the record carefully. It emerges out from the record that the assessee has purchased a property, whose value in the sale deed has been determined at Rs.1,20,00,000/-. However, for the purpose of charging the stamp duty, stamp duty valuation authority has determined the value at Rs.1,37,97,563/-. The ld. Assessing Officer has confronted the assessee as to why the difference of Rs.17,97,563/- be not added in the hands of assessee as deemed gift under section 56(2)(x) of the Income Tax Act. The ld. Counsel for the assessee has pointed out that the assessee has made a prayer that valuation of the property be determined on its fair market value as per clause (2) of section 50C, which was provided in the 2nd proviso under section 56(2)(x). This procedure has not been followed by the ld. Assessing Officer. Therefore, we deem it appropriate to set aside both the orders and direct the ld. Assessing Officer to get the property valued by the DVO and determine the fair market value. If the difference between the sale consideration disclosed ITA No. 1403/KOL/2024 (A.Y. 2018-2019) Kolkata Reserve Bank Employees Cooperative Credit Society Limited Assessment Year: 2018-2019 3 by the assessee, vis-à-vis determined by the DVO, is to be worked out. The ld. Assessing Officer thereafter decide the issue in accordance with law. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/10/2024. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 24th day of October, 2024 Copies to :(1) Kolkata Reserve Bank Employees Cooperative Credit Society Limited, 13, Netaji Subhash Road, GPO, Kolkata-700001 (2) Income Tax Officer, Ward-36(1), Kolkata, Aayakar Bhawan Poorva, 110, Shanti Pally, E.M. Bypass, Kolkata-700107 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "