SYMBIOTIC INFOTECH PVT. LTD.,CHENNAI V. DCIT, CORPORATE CIRCLE-6(2), CHENNAI

ITA 3226/CHNY/2024

AI Insights

The case involves Symbiotic Infotech Pvt. Ltd., the appellant, contesting the assessment of Long Term Capital Gain (LTCG) on the sale of a property at Ambattur Industrial Estate for the Assessment Year 2015-16. The property was sold for Rs. 3,50,00,000, but the Assessing Officer (A.O) adopted a higher value of Rs. 5,12,26,560 as per the Stamp Valuation Authority, invoking Section 50C of the Income-tax Act. The appellant challenged this valuation, leading to a referral to the District Valuation Officer (DVO), but the report was not available at the time of the assessment. The Tribunal, upon receiving the DVO's report post-assessment, directed the A.O to re-evaluate the LTCG using the DVO's valuation as per Section 50C(3).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472176 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: M. KARUNAKARAN
• Keywords: Capital asset; Sale consideration of property below Jantri Value; Valuation report
• Section: 143(3); 50C

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3226/Chny/2024 िनधा9रण वष9 /Assessment Year: 2015-16 Symbiotic Infotech Pvt. Ltd., Flat No.2, Sundaram Illam, No.1, Chellammal Street, Shenoy Nagar, Chennai – 600 030. Vs. The Dy. Commissioner of Income Tax, Corporate Circle-6(2), Chennai. [PAN: AAICS 6901P] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : Shri M. Karunakaran, Advocate HIथ\u001e की ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 05.03.2025 घोषणा की तारीख /Date of Pronouncement : 07.03.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2015-16 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 02.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 29.12.2017. ITA No.3226/Chny/2024 :- 2 -: 2. The effective ground of appeal in this appeal of assessee is against confirming the addition of the Long Term Capital Gain (LTCG) of Rs. 1,80,34,925/-. Assessee 3. The assessee has sold a property at Ambattur Industrial Estate vide Document No.5485 of 2014 registered with SRO, Konnur for a consideration of Rs.3,50,00,000/-. The value of said property as per stamp valuation authority was Rs.5,12,26,560/-. The A.O therefore invoking the provisions of Section 50C of the Act considered the full value of consideration at Rs.5,12,26,560/- and made addition of long term capital gain of Rs.1,80,34,925/-. The assessee during assessment proceeding has challenged the valuation as per stamp valuation authority and the A.O has referred the valuation to the DVO. However, as the valuation report from DVO was not received, the A.O has adopted the value of property as per valuation of Rs. 5,12,26,560/. 4. The Ld. Authorized Representative (A.R) of the assessee, at the outset, has stated that the valuation report has now been received vide F.No.DVO/MDS/CG(06)/2017-18-25/633 dated 19.12.2024. Therefore, the A.O may be directed to adopt the value as determined by the stamp valuation authority as per Section 50C(3) of the Act. ITA No.3226/Chny/2024 :- 3 -: 5. The Ld. Departmental Representative did not controvert to the averments made by the assessee. 6. We have heard the rival submissions, and perused the materials available on record. The A.O has taken the full value consideration on sale of property at Ambattur Industrial Estate at Rs. 5,12,26,560/- as against Rs.3,50,00,000/- shown by the assessee. The A.O by invoking the provisions of Section 50C of the Act, has adopted the value adopted by the stamp valuation authority as the full value of consideration. The assessee had objected to the valuation on the ground that the building was demolished before the transfer of land, and therefore, the A.O referred the case to DVO for valuation. However, as the valuation report was not received at the time of passing the assessment order, the A.O adopted the value determined by the Stamp Valuation Authority, i.e., Rs. 5,12,26,560/-, as the full value of consideration. The valuation report was not received even by the time of passing the order by Ld. CIT(A). The valuation report has now been received on 19.12.2024, and the Ld. AR has requested to direct the A.O to re-compute capital gain by taking the value determined by the Stamp Valuation Authority as per Section 50C(3) of the Act. We agree with the submission of Ld. AR and we deem it fit to remit the matter back to the file of A.O to determine the LTCG in ITA No.3226/Chny/2024 :- 4 -: accordance with the provisions of Section 50C(3) of the Act. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 07th March, 2025. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 07th March, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "