ITO, CHENNAI V. K.R.Muralidhar, CHENNAI

MA 3/CHNY/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4772 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 18-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Fair market value

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . , ! ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER M.A.NO.03/2016 (M.A.NO.84/MDS/2015) (IN ITA NO.1097/MDS/2015) ASSESSMENT YEAR: 2009-10 THE INCOME-TAX OFFICER, NON-CORPORATE WARD -11(2), CHENNAI 600 006. (APPLICANT) VS. MR.K.R.MURALIDHAR, NEW NO.246 (OLD NO.120), FIRST FLOOR, GOVINDAPPA NAICKEN STREET, CHENNAI 600 001. (PAN NO.AAGPM9070N) (RESPONDENT) APPLICANT BY : SHRI SHIVA SRINIVAS, CIT RESPONDENT BY ` : SHRI R.VIJAYARAGHAVAN, ADVOCATE # $%! /DATE OF HEARING : 29.07.2016 &' $%! /DATE OF PRONOUNCEMENT : 05.08.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE REVENUE FILED THE PRESENT MISCELLANEOUS PETITIO N TO RECTIFY THE ORDER OF THIS TRIBUNAL DATED 28.08.2015 BY GIVING DIRECTI ON TO THE ASSESSING OFFICER TO ASSESS THE CAPITAL GAIN IN THE HANDS OF THE PART NERSHIP FIRM. 2 M.A. NO.03/MDS/2016 2. SHRI SHIVA SRINIVAS, CIT, THE LD. DR FOUND THAT THE PROPERTY HAS TO BE VALUED ON THE DISSOLUTION OF THE FIRM ON 20.02.2007 AND THEREAFTER THE CAPITAL GAIN HAS TO BE COMPUTED. AS ON 20.02.2007, THE FIRM WAS NOT IN EXISTENCE. MOREOVER, THERE WAS NO DIRECTION TO ASSESSING OFFIC ER TO ASSESS THE INCOME IN THE HANDS OF THE PARTNERSHIP FIRM. THEREFORE, THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL DATED 28.08.2015. 3. ON THE CONTRARY, SHRI R.VIJAYARAGHAVAN, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT UP TO DISSOLUTION OF THE PA RTNERSHIP FIRM, THE INCOME HAS TO BE ASSESSED IN THE HANDS OF THE PARTNERSHIP FIRM. THE PARTNERSHIP FIRM WAS DISSOLVED ON 20.02.2007. THEREFORE, THE INCOME HAS TO BE ASSESSED IN THE HANDS OF THE PARTNERSHIP FIRM UP TO 20.02.2007. THIS TRIBUNAL DIRECTED THE ASSESSING OFFICER TO FIND OUT THE FAIR MARKET VALUE OF THE PROPERTY AS ON 20.02.2007 BEING THE DATE OF DISSOLUTION. THEREFORE , THERE IS NO ERROR IN THE ORDER OF THE TRIBUNAL. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE MP IT APPEARS THAT THE ONLY GRIEVANCE OF THE REVENUE IS THAT A SPECIFIC DIRECTI ON TO INITIATE THE PROCEEDINGS FOR THE ASSESSING INCOME IN THE HANDS OF THE PARTNE RSHIP FIRM WAS NOT GIVEN BY THE TRIBUNAL. THE PARTNERSHIP FIRM IS NOT A PARTY I N THE APPEAL PROCEEDINGS. THEREFORE, THIS TRIBUNAL CANNOT GIVE ANY DIRECTION TO THE ASSESSING OFFICER TO ASSESS THE INCOME IN THE HANDS OF THE PARTNERSHIP F IRM. THE ISSUE IN APPEAL BEFORE THIS TRIBUNAL WAS ONLY VALUE OF THE PROPERTY AND THIS TRIBUNAL FOUND THAT 3 M.A. NO.03/MDS/2016 THE FAIR MARKET VALUE / MARKET VALUE OF THE PROPERT Y AS ON 20.02.2007 HAS TO BE DETERMINED. 5. IN VIEW OF THE ABOVE, THIS TRIBUNAL DO NOT FIND ANY ERROR MUCH LESS PRIMA FACIE ERROR WITH ORDER DATED 20.08.2015. 6. ACCORDINGLY, THE MISCELLANEOUS PETITION FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 05 TH AUGUST, 2016 AT CHENNAI. SD/- SD/- ( . ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) ! / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, - /DATED, THE 05 TH AUGUST, 2016. SP. $ .%/0 10'% /COPY TO: 1. 23 /APPELLANT 2. .423 /RESPONDENT 3. # 5% () /CIT (A) 4. # 5% /CIT, 5. 06 .% /DR 6. 78 9 /GF.