Prashant Rice Industries, Davangere V. ITO, Davangere

MA 13/BANG/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 7945 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-04-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 07-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SARAVANAN
• Assessee Lawyers: G ASHOK MADNUR
• Keywords: Principle of natural justice; Fair market value

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI N.K. SAINI, ACCOUNTANTMEMBER AND SMT. P.MADHAVI DEVI, JUDICIAL MEMBER MISC.APPLN.NO.13/BANG/2012 (IN ITA NOS.156 & 121/BANG/2009) (ASSESSMENT YEAR: 2005-06) M/S.PRASHANT RICE IND USTRI E S, P.B.ROAD, DAVANGERE VS. APPLICANT INCOME - TAX OFFICER, WARD 2, DAVANGERE RESPONDENT APP LICANT BY: SHRI G. ASHOK MADNUR, CA . RESPONDENT BY : SHRI B.SARAVANAN, J CIT . DATE OF HEARING: 27 - 4 - 2012. DATE OF PRO NOUNCEMENT: 27 - 4 - 2012. O R D E R PER N.K.SAINI, AM: THIS MISCELLANEOUS APPLICATION (M.A) ARISING OUT O F ORDER DATED 30-9-2009 IN ITA NO.156/BANG/2009 HAS BEEN FI LED BY THE ASSESSEE. IN THIS M.A. THE ASSESSEE CONTENDS A S UNDER: 1. THE ITAT ORDER DELIVERED BY HONOURABLE A BENCH ON 30 TH SEPT. 2009 IN RESPECT OF APPEAL FIELD BY APPELLANT ITA NO.156/BANG/09- AND ALSO THE APPEAL FILED BY DEPARTMENT-ITA NO.121/BANG/09 WAS DISMISSED. IN EFFECT UPHOLDING THE CIT(A), HUBLI ORDER IN ITA 193/CIT(A)HBL/07-08. 2. THE CIT(A), HUBLI HAD PARTLY ALLOWED THE APPELLANTS APPEAL IN RESPECT TO ADOPTION OF RATES F OR M.A.NO.13/BANG/2012 PAGE 2 OF 4 WORKING CAPITAL GAINS. THE RELEVANT OPERATIVE PART OF THE ORDER IN PARA NO.9 OF PAGE 14 READS AS UNDER: 9. UNDER THE CIRCUMSTANCES, DECISION OF AO THAT TRANSACTIONS ARE LIABLE FOR CAPITAL GAIN TAX I S HELD AS CORRECT IN VIEW OF ABOVE DISCUSSION, THEREFORE SAME IS CONFIRMED. IN RESPECT OF COST AND FMV OF LAND AND BUILDING (FACTORY BUILDING & GODOWN) IT IS HELD THAT IN RESPECT OF LAND FMV ADOPTED BY AO AT 60/- PER SFT APPEAR TO BE VERY HIGH AND ` 10 PER SFT AS APPROVED BY KIADB APPEARS TO BE LOW BUT IN THE INTEREST OF NATURAL JUSTICE AND GOVERNMENT APPROVED RATES AO IS DIRECTED TO ADOPT ` 15 PER SFT TO WORK OUT CAPITAL GAINS TAX. 3. THE HONBLE ITAT HAS MENTIONING THE RATE AS `30 INSTEAD OF `15 IN PARA 4.1 ON PAGE 16 OF THE ITAT NO.156/BANG/09 DT.30 TH SEPTEMBER 2009. FOR THE REASONS THAT THEY HAVE CONFIRMED THE CIT(A), HUBLI ORDER, THE MISTAKE OF MENTIONING `30 PER SFT INSTEA D OF `15 PER SFT IS MISTAKE APPARENT ON RECORD. PRAYER THE APPELLANT-PETITIONER REQUEST FOR RECTIFICATION OF THE MISTAKE APPARENT ON RECORD, IN THE ORDER PASSED ON 30 TH SEPTEMBER 2009 REGARDING THE RATE TO BE ADOPTED FOR VALUATION OF INDUSTRIAL LAND TO BE AT ` 15 PER SQ.FT AS DECIDED BY CIT(A), HUBLI INSTEAD OF `3 0 MENTIONED. 2. DURING THE COURSE OF HEARING, LEARNED COUNSEL F OR THE ASSESSEE REITERATED THE CONTENTS OF THE M.A. DATED 20-4-2012 AND SUBMITTED THAT THERE IS A MISTAKE APPARENT FROM RECORD WHICH REQUIRES RECTIFICATION U/S 254 OF THE ACT. 3. LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE P ARTIES AND MATERIAL ON RECORD IT IS NOTICED THAT THIS BENC H OF THE TRIBUNAL, WHILE ADJUCATING THE CROSS APPEALS IN ITA NOS.156 & M.A.NO.13/BANG/2012 PAGE 3 OF 4 121/BANG/2009 FOR THE ASSESSMENT YEAR 2005-06, OBSE RVED IN PARA.4 OF THE ORDER DATED 30-9-2009 AS UNDER: 4. NOW WE SHALL TAKE THE APPEAL FILED BY THE REVENUE. THE ASSESSING OFFICER WHILE DETERMINING TH E FAIR MARKET VALUE OF THE LAND AND THE BUILDING, VAL UED THE LAND AT `60 PER SQ FT. BY GIVING 50% DISCOUNT OF THE TOTAL QUANTITY OF THE LAND. THE BUILDING WAS VA LUED AT `450 PER SQ FT. THE LEARNED CIT(A) DIRECTED TO A DOPT THE RATE OF 15 PER SQ FT FOR THE LAND `150 PER SQ F T FOR THE BUILDING. HOWEVER, IN LINE 11 AT PAGE 16 OF PARAGRAPH 4.1, IT HAS BEEN MENTIONED AS UNDER: THEREFORE ADOPTION OF RATE OF `30 PER SQ FT FOR INDUSTRIAL LAND BY THE LEARNED CIT(A) IS APPROPRIAT E AND THE LEARNED CIT(A) HAS UPHELD THE DISCOUNT AS GIVEN BY THE AO. FROM THE ABOVE, IT IS CLEAR THAT THE RATE OF `30 PER SQ.FT. IN LINE 11 AT PAGE 16 OF PARA.4.1 HAS INADVERTENTLY BEEN ME NTIONED INSTEAD OF `15 PER SQ.FT. . WE, THEREFORE, MODIFY THE SAID ORDER DATED 30-9-2009 TO THIS EXTENT THAT THE LINES 11 TO 13 AT PAGE 16 OF PARA4.1 SHALL READ NOW AS UNDER: THEREFORE ADOPTION OF RATE OF `15 PER SQ FT FOR INDUSTRIAL LAND BY THE LEARNED CIT(A) IS APPROPRIAT E AND THE LEARNED CIT(A) HAS UPHELD THE DISCOUNT AS GIVEN BY THE AO. M.A.NO.13/BANG/2012 PAGE 4 OF 4 4. IN THE RESULT, THE M.A FILED BY THE ASSESSEE I S ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH APRIL, 2012. SD/- SD/- (SMT. P.MADHAVI DEVI) (SMT. P.MADHAVI DEVI) (SMT. P.MADHAVI DEVI) (SMT. P.MADHAVI DEVI) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER (N.K. SAINI) ACCOUNTANT MEMBER EKS COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) CONCERNED 4. CIT 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE