RAMJI DAS GUPTA ,GWALIOR V. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 1 GWALIOR , GWALIOR

ITA 82/AGR/2021

AI Insights

The appeals by Shri Ramji Das Gupta for the Assessment Years 2011-12 to 2013-14 were against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The main issues were the disallowance of interest and the computation of capital gains. The Tribunal referenced a previous decision in the assessee's favor for AY 2010-11, which covered the issue of interest disallowance. The Tribunal found that the difference in value for one of the properties sold was less than 5%, thus not warranting an addition to the income. However, the amount related to the land owners' society was confirmed as it was an allowable deduction while computing capital gains.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38819 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Other Referred Cases: ITA No.152/Agr/2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Assessee Lawyers: GOURAV GOYAL; LD
• Keywords: Sale consideration of property below Jantri Value; Capital Gains
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No. 81/Agr/2021 (िनधाŊरणवषŊ / Assessment Year: 2011-12) & 2. आयकरअपीलसं./ ITA No.82/Agr/2021 (िनधाŊरणवषŊ / Assessment Year: 2012-13) & 3. आयकरअपीलसं./ ITA No.83/Agr/2021 (िनधाŊरणवषŊ / Assessment Year: 2013-14) Shri Ramji Das Gupta 27, Madhav Nagar, Gwalior बनाम/ Vs. ACIT-Circle-1, Gwalior ̾थायीलेखासं./जीआइआरसं./PAN/GIR No.ACOPG-5414-C (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Gourav Goyal, CA- Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 12-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AY) 2011- 12 to 2013-14 arises out of separate orders of first appellate authority. The facts and issues are admittedly the same. First, we take up appeal for AY 2011-12 which arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), 2 Delhi [CIT(A)] dated 19-08-2021 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 24-02-2014. The grievance of the assessee is disallowance of interest and computation of capital gains. 2. The Ld. AR, at the outset, placed on record the decision of Tribunal in assessee’s own case for AY 2010-11, ITA No.152/Agr/2016 dated 09-10-2018 and stated that the issue of interest disallowance is already covered therein. This position could not be controverted by Ld. Sr. DR. Upon perusal of case records, the appeal is disposed-off as under. Proceedings before lower authorities 3.1 The assessee claimed loss of Rs.14.67 Lacs under the head income from other sources due to the fact that it received interest of Rs.35.13 Lacs but it paid interest of Rs.50.47 Lacs. In other words, the assessee received interest at lower rates but paid interest at higher rates. The Ld. AO rejected the same and added the differential of Rs.15.34 Lacs to the income of the assessee. 3.2 The assessee sold one flat No.1005 for Rs.13.50 Lacs as against stamp duty value of Rs.14.08 Lacs. The Ld. AO added differential of Rs.0.58 Lacs invoking the provisions of Sec.50C. 3.3 The assessee also sold another flat No.217B for Rs.8.25 Lacs. Out of the same, the amount of Rs.0.25 Lacs was the share of the Land owners’ society and Rs.8 Lacs was net consideration for the assessee. The Ld. AO did not allow the amount of Rs.0.25 Lacs. 3 3.4 The Ld. CIT(A) confirmed the interest disallowance for Rs.15.34 Lacs. No findings were rendered on the issue of Capital Gains. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 4. We find that the issue of interest disallowance is covered in assessee’s favor by the decision of Tribunal for AY 2010-11, ITA No.152/Agr/2016 dated 09-10-2018. The SMC bench, at paras 6 to 8, accepted the stand of the assessee and deleted interest disallowance. Taking the same view, we delete impugned interest disallowance. 5. So far as the addition of Rs.0.58 Lacs is concerned, we find that difference in value is less than 5% and therefore, this addition stand deleted. The addition of Rs.0.25 Lacs stand confirmed since expenses relating to transfer of property only is an allowable deduction while computing capital gains. The gains are to be computed on sale consideration as mentioned in the sale deed. The appeal stand partly allowed. 6. In AYs 2012-13 & 2013-14, the sole grievance of the assessee is interest disallowance. The same stand decided in assessee’s favor in terms of our adjudication for AY 2011-12. 4 7 ITA No.81/Agr/2021 stand partly allowed. The other two appeals stand allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ /ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "