ASSISTANT COMMISSIONER OF WEALTH-TAX, CIRCLE 1(1), RAIPUR V. SMT SATYABALA AGRAWAL L/H OF LATE SHRI RAMAVTAR AGRAWAL, RAIPUR

WTA 01/RPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6512 (ITAT-RAIPUR)
• Duration Of Justice: 1 year(s) 12 day(s)
• Appeal Type: TDS Appeal
• Pronouncement Date: 08-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 26-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Fair market value

Judgement Text

1 WTA NO. 01/RPR/2018 IN THE INCOME TAX APPELLA TE TRIBUNAL RAIPUR BENCH: RAIPUR BEFORE SHRI R. K. PANDA, ACCOUNTANT ME MBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER W.T.A .NO. 01/RPR/201 8 (A.Y 2006-07) ASSISTANT COMMISSIONER OF WEALTH - TAX, CIRCLE 1(1), RAIPUR (APPELLANT) VS LATE SHRI RAMVTAR AGARWAL (L/H SMT. SATYABALA AGARWAL) 9, SOUTH AVENUE, CHOUBEY COLONY. PAN AEEPA8624E (RESPONDENT) APPELLANT BY SHRI SANJAY KUMAR, DR RESPONDENT BY SHRI VEEKAAS S. SHARMA, CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 19.01.2018 PASSED BY THE CWT(A)-I, RAIPUR FOR THE A.Y. 2006-07 . 2. GROUNDS OF APPEAL ARE AS FOLLOWS: 1. WHETHER ON POINTS OF LAW AND ON POINTS OF FACTS & CIRCUMSTANCES OF THE CASE, THE LD. CWT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS.43,89,983/- MADE ON ACCOUNT OF SHORT VALUATION OF LAND SHOWN IN W.T. RETURN? 2. WHETHER ON POINTS OF LAW AND ON FACTS & CIRCUMST ANCES OF THE CASE, THE LD. CWT(A) HAS ERRED IN GIVING A FINDING THAT THE AO HA S MADE ADDITION WITHOUT ANY BASIS WHICH IS FACTUALLY INCORRECT? 3. WHETHER ON POINTS OF LAW AND ON FACTS & CIRCUMST ANCES OF THE CASE, THE LD. CWT (A) HAS ERRED IN ACCEPTING THE VALUE OF LAND AS DISCLOSED BY THE ASSESSEE DATE OF HEARING 14.08.2018 DATE OF PRONOUNCEMENT 18.10.2018 2 WTA NO. 01/RPR/2018 WITHOUT APPRECIATING THE PURPORT OF PROVISIONS OF S ECTION 7 AND MANNER LAID DOWN IN SCHEDULE III OF W.T. ACT, 1957? 4. WHETHER ON POINTS OF LAW AND ON FACTS & CIRCUMST ANCES OF THE CASE, THE LD. CWT(A) WAS JUSTIFIED IN ACCEPTING THE FRESH EVIDENC E PRODUCED BY THE ASSESSEE, IF ANY, WITHOUT ALLOWING THE AO, PROPER O PPORTUNITY TO EXAMINE THE SAME, THEREBY VIOLATING THE PROVISIONS ON LAW? 5. WHETHER ON POINTS OF LAW AND ON FACTS & CIRCUMST ANCES OF THE CASE, THE LD. CWT(A) HAS ERRED BY GIVING A FINDING WHICH IS CONTR ARY TO THE EVIDENCE ON RECORD, AS THE LD. CWT(A) HAS ACCEPTED THE SUBMISSI ON OF THE ASSESSEE WHICH IS FACTUALLY INCORRECT, THEREBY RENDERING THE DECIS ION, WHICH IS PERVERSE? 6. THE ORDER OF LD. CWT(A) IS ERRONEOUS BOTH IN LAW AND ON FACTS? 7. ANY OTHER GROUND THAT MAY BE ADDUCED BOTH IN LAW AND ON FACTS. 3. THE ASSESSING OFFICER ISSUED NOTICE U/S 17 OF TH E ACT ON 31.03.2013 TO THE ASSESSEE CALLING FOR THE RETURN OF WEALTH IN RE SPECT OF A.Y. 2006-07 WITH THE APPROVAL OF THE JOINT COMMISSIONER OF INCOME TAX, R ANGE-1, RAIPUR. IN RESPONSE TO THE SAID NOTICE, NO RETURN WAS FILED BY THE ASSESSEE. SUBSEQUENTLY, IN RESPONSE TO ANOTHER NOTICE, THE RETURN OF WEALTH WAS SUBMITTED ON 18.03.2014 BY THE ASSESSEE. THE ASSESSING OFFICER O NLY MENTIONED IN THE ASSESSMENT ORDER THAT SUBMISSION OF THE ASSESSEE WA S PERUSED AND THE NET WEALTH OF THE ASSESSEE COMPUTED AS UNDER: NET WEALTH AS PER RETURN RS. 34,13, 400/- ADD: HOUSE CHOUBEY COLONY EXEMPT LAND AT SHANKAR NAGAR I/2 OF 0.258 H=0.129 1290 SQ.M @ RS.4304/- RS.55,52,160/- LESS:SHOWN RS.11,62,177/- 43,89,983/- RS.4 3,89,983/- ---------------------------------------------- ----------- ASSESSED NET WEALTH RS.78,03,383/- U/S 44C RS.78,03,383/- 3 WTA NO. 01/RPR/2018 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE COMMISSIONER OF WEALTH TAX (APPEALS). TH E CWT(A) ALLOWED THE APPEAL OF THE ASSESSEE. THE REVENUE HAS FILED THE P RESENT APPEAL BEFORE US. 5. THE LD. DR SUBMITTED THAT THE ASSESSING OFFICER WAS JUSTIFIED IN THE ENHANCEMENT OF THE NET WEALTH OF THE ASSESSEE AND T HE CWT(A) IS NOT JUSTIFIED IN DELETING THE SAME. 6. THE LD. AR SUBMITTED THAT THE ASSESSING OFFICER HAS NOT PASSED ANY SPEAKING ORDER NOR GIVEN ANY COGENT REASONS JUSTIFY ING THE ENHANCEMENT IN THE NET WEALTH OF THE ASSESSEE. THE LD. AR SUBMITTED TH AT THE ASSESSEE FILED ALL THE RELEVANT DETAILS BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS NOT GIVEN ANY COGENT REASONS WHILE ENHANCING THE NET WE ALTH OF THE ASSESSEE. THE LD. AR SUBMITTED THAT THE LAND MENTIONED IN THE ASS ESSMENT ODER WAS PURCHASED BY THE ASSESSEE IN F.Y. 2004-05 AND RECOR DED THE COST I.E. AT RS. 11,06,835/-. IN FACT IF THE SAID LAND IS CALCULATED ON THE BASIS OF COST INFLATION INDEX AS PER THE INCOME TAX ACT, 1961, THEN THE VAL UE COMES AT RS.11,46,035/-. THUS, THE LD. AR SUBMITTED THAT THE LAND IS VALUED BY THE ASSESSEE BY CALCULATING VALUE WHICH IS CALCULATED O VER COST PLUS A SPECIFIED PERCENTAGE TO REFLECT THE FAIR MARKET VALUE. THUS, THE VALUE IS ARRIVED AT BY ADDING 5% TO THE COST WHICH COMES TO RS.11,62,177/- . THE LD. AR FURTHER SUBMITTED THAT THE VALUE TAKEN BY THE ASSESSING OFF ICER IS MERE GUESS AND DOES NOT GET SUPPORT FROM ANY MATERIAL AVAILABLE ON RECO RD. THE LD. AR FURTHER RELIED UPON THE ORDER OF THE CWT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE ASSESS MENT ORDER, IT CAN BE SEEN THAT HE ASSESSING OFFICER ONLY MENTIONED IN THE ASS ESSMENT ORDER THAT SUBMISSION OF THE ASSESSEE WAS PERUSED AND THE NET WEALTH OF THE ASSESSEE COMPUTED WITHOUT ANY BASIS OR REASONS. THE CWT(A) H ELD AS UNDER: 4 WTA NO. 01/RPR/2018 2.3 AO HAS ADOPTED VALUE OF LAND AT RS.55,52,160/- BY COMPUTING THE SAME @ RS.4304/- PER SQ. FT. THE ASSESSMENT ORDER I S NOT A SPEAKING ORDER AND DOES NOT PROVIDE ANY BASIS ON WHICH THE RATE OF RS.4304/- HAS BEEN ADOPTED. AS PER THE COST OF LAND AT RS.11,06,875/- AND ADJUSTING THE COST FOR CII, THE VALUE OF LAND IS RS.11,46,035. AS PER THE DECISION IN THE CASE OF SUDESH CHANDRA TALWAR VS. CIT 137 ITR 483 THE HONB LE KOL HIGH COURT HAS HELD THAT IN RESPECT OF IMMOVABLE PROPERTY THERE IS NO FIXED MARKET SUCH AS MARKET FOR SHARE OR FOR OTHER COMMODITIES LIKE SUGA R, CLOTH, ETC. IN ORDER TO ARRIVE AT A VALUATION IN RESPECT OF THE PROPERTY, T HERE MUST NECESSARILY BE A CERTAIN ELEMENT OF GUESS. BUT THE GUESS MUST BE BAS ED ON CERTAIN FACTS AND ACCORDING TO CERTAIN PRINCIPLES WHICH WOULD IN THE FACTS AND CIRCUMSTANCES OF EACH CASE BE AS FAIR AS POSSIBLE TO THE REVENUE AS WELL AS TO THE ASSESSEE IN TRYING TO IMAGINE REASONABLY AND INTELLIGIBLY THE P RICE WHICH WAS EXPECTED TO BE FETCHED IF IT WAS POSSIBLE TO SELL THE PROPERTY IN QUESTION ON THE RELEVANT VALUATION DATA. IN THE PRESENT CASE THERE IS NO BAS IS AS PER RECORD TO ADOPT VALUE OF RS.4304 PER SQ. FT. THEREFORE, THE AO IS D IRECTED TO APPLY VALUE RS.11,46,035/- AND REVISE THE ASSESSMENT ORDER. 3.0 APPEAL IS ALLOWED. THUS, THE CWT(A) HAS ELABORATELY DEALT WITH THE ISS UE AND GIVEN A REASONED ORDER. THE LD. DR COULD NOT POINT OUT ANY MISTAKE I N THE ORDER OF THE CWT(A), SO AS TO TAKE CONTRARY VIEW. THEREFORE, THERE IS NO NEED TO INTERFERE WITH THE SAME. HENCE, APPEAL FILED BY THE REVENUE IS DISMISS ED. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH OCTOBER, 2018 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 18/10/2018 KRK/R.N 5 WTA NO. 01/RPR/2018 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT PRIVATE SECRETARY RAIPUR BENCH, RAIPUR