M S Royal Garden Una v. Ito Una

In The Income Tax Appellate Tribunal Chandigarh Benches Smc Chandigarh Before Ms Diva Singh Judicial Member Ita No 1227 Chd 2017 Assessment Yea R 2007 08 M S Royal Garden Vs The Ito Nichla Tahliwal Una Hp Tehsil Distt Una Hp Pan No Aajfr 7591 L Appellant Respondent Appellant By Shri R R Thakur Respondent By Smt Chander Kanta Sr Dr Date Of Hearing 14 11 2017 Date Of Pronouncement 13 12 2017 Order The Present Appeal Has Been Filed By The Assessee Ass Ailing The Correctness Of The Order Dated 30 05 2017 Of Ld Cit Appe Als Palampur Pertaining To 2007 08 Assessment Year On The Following Grounds 1 That The Ld Commissioner Of Income Tax Appeals H As Wrongly Decided The Appeal Of The Appellant As There Was No Information If Any Co Llected And Must Form A Reasonable Belief To Reopen The Assessment And Addition Made M Ay Kindly Be Deleted 2 That The Ld Commissioner Of Income Tax Appeals H As Wrongly Accepted The Valuation Officers Report Which Is Based On Central Governmen T Rates Applied In Metro Cities The Materials Of Construction Are Available At Cheaper Rates In Himachal Pradesh And Cost Of Construction Is Cheaper The Rates Are Lower Tha N Metro Cities The Addition Made On This Rate May Kindly Be Deleted 3 The Ld Commissioner Of Income Tax Appeals Has Wr Ongly Confirmed The Addition Of Rs 13 69 172 Reported By The Departmental Valua Tion Officer Which May Kindly Be Deleted 2 However At The Time Of Hearing Ld Ar Did Not Make A Ny Submissions In Regard To Ground No 1 And Qua Ground Nos 2 3 Sup Ported By The Residuary Ground 4 It Was His Submission That The Issue M Ay Be Restored Back To The File Of The Ao As In The Subsequent Years O N Similar Set Of Facts And Circumstasnces The Issue Has Been Restored Back T O The File Of The Ao Wherein The Additions Made Relying Upon The Valuation Ofice Rs Estimate Challenged In Appeal Before The Cit A In The Case Of The Assessee Itself Had Been Restored Back For Estimating The Cost Of Construct Ion As Per Pwd Rates Fixed In Himachal Pradesh Copy Of The Order Dated 31 01 20 17 In Ita 1192 Ita 1227 Chd 2017 A Y 2007 08 Page 2 Of 3 1330 Chd 2016 Pertaining To 2008 09 And 2009 10 Asses Sment Year In The Case Of The Assessee Was Filed 2 1 The Ld Sr Dr Had No Objection In The Aforementione D Peculiar Facts Wherein The Judicial Precedent Was Available 3 I Have Heard The Submissions And Perused The Mater Ial Available On Record I Find That In The Facts Of The Assessees Own Case The Coordinate Bench Relying Upon Order Of The Itat Smc Bench In Th E Case Of Shri Nirat Ram V Ito Ita 897 Chd 2017 Dated 26 09 2016 Restored The Issue Back With The Following Observations 9 After Considering Rival Submissions I Am Of The View The Matter Requires Re Consideration In The Light Of Or Der Of Itat Chandigarh Bench In The Case Of Shri Nirat Ram Sup Ra In Which In Para No 4 And 5 It Is Held As Under 4 After Considering Rival Submissions I Am Of T He View That Matter Requires Re Consideration At The Level Of The Assessing Officer The Ld Counsel For The Assesse E Submitted That Pwd Rates Of Himachal Pradesh May Be Applied As Was Argued Before The Authorities Below On The Other Hand Ld Dr Relied Upon Orders Of Authoritie S Below The Assessee Specifically Pleaded Before Ld Cit Ap Peals That He Has Got The Valuation Of The Constructed Po Rtion From Approved Valuer Which Has Not Been Adversely Commen Ted By The Authorities Below The Assessee Also Pleaded B Efore Ld Cit Appeals That Dvo Has Applied All India Rate Of Construction Applicable To Metro Cities He Has Al So Pleaded That In Himachal Pradesh Pwd Has Fixed Lower Rate Of Construction Because Of The Building Material Avail Able At Lower Rates As Compared To The Metro Cities These Submissions Of The Assessee Have Not Been Rebutted By The Ld Cit Appeals In Any Manner The Ld Counsel For Th E Assessee Also Submitted That Valuation Report Submi Tted By Assessee Was Based On Pwd Rates In The Case Of Ci T Vs Raj Kumar Honble Allahabad High Court In 182 Itr 436 Considering The Order Passed By The Tribunal Found That The Tribunal While Fixing The Cost Of Construction Has Taken Into Consideration The Rates To Be Applied For Estimate Of Cost Of Construction Should Be Up Pwd Rates And Not The C Entral Pwd Rates Therefore Reference Was Rejected 5 In The Present Case The Assessee Pleaded That I N Himachal Pradesh Pwd Has Fixed Lower Rates Of Construction Therefore These Were Relevant To Be Considered By The Authorities Below I Therefore Set Aside The Orders Of Authorities Below And Restore T He Matter In Issue I E Estimate Of Cost Of Constructi On To The File Of Assessing Officer With Direction To Re Deci De This Issue Estimating The Cost Of Construction As Per Pw D Rates Fixed In Himachal Pradesh The Assessing Officer S Hall Give Reasonable Sufficient Opportunity Of Being Hea Rd To The Assessee No Other Point Is Argued By Ld Coun Sel For The Assessee The Appeal Of The Assessee Is There Fore Partly Allowed For Statistical Purposes 10 In The Above Case The Assessee Pleaded That In Himachal Pradesh Pwd Has Fixed Lower Rates Of Construction Therefore These Were Relevant To Be Considered By The Authorities B Elow The Matter Was Therefore Restored To The File Of Assessing O Fficer To Re Decide Ita 1227 Chd 2017 A Y 2007 08 Page 3 Of 3 This Issue For Estimating The Cost Of Construction As Per Pwd Rates Fixed In Himachal Pradesh Following The Order In The Case Of Shri Nirat Ram Supra I Set Aside The Orders Of Author Ities Below And Restore The Matter In Issue I E Estimate Of Cost O F Construction To The File Of Assessing Officer With Direction To Re Deci De The Issues Estimating The Cost Of Construction As Per Pwd Rate S Fixed In Himachal Pradesh The Assessing Officer Shall Give Reasonable Sufficient Opportunity Of Being Heard To The Assess Ee No Other Point Is Argued By Ld Counsel For The Assessee Both Th E Appeals Of The Assessee On These Grounds Are Allowed For Statistic Al Purposes 4 Respectfully Following The Precedent The Issue Is Set As Ide Back To The File Of The Ao With An Identical Direction Said Order Was Pro Nounced In The Open Court At The Time Of Hearing Itself 5 In The Result The Appeal Of The Assessee Is Allowed For Statistical Purposes Order Pronounced In The Open Court On 13 12 2017 Sd Diva Singh Judicial Member Poonam Copy To 1 The Appellant 2 The Respondent 3 The Cit 4 The Cit A 5 The Dr Asstt Registrar Itat Chandigarh