The ACIT, Circle-3,, Baroda v. Shri Kishorbhai D Prajapati, Baroda

ITA 1766/AHD/2013 | 2009-2010
Pronouncement Date: 27-09-2016 | Result: Dismissed

Appeal Details

RSA Number 176620514 RSA 2013
Assessee PAN AAQPT6390Q
Bench Ahmedabad
Appeal Number ITA 1766/AHD/2013
Duration Of Justice 3 year(s) 3 month(s) 9 day(s)
Appellant The ACIT, Circle-3,, Baroda
Respondent Shri Kishorbhai D Prajapati, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 27-09-2016
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 27-09-2016
Date Of Final Hearing 20-09-2016
Next Hearing Date 20-09-2016
Assessment Year 2009-2010
Appeal Filed On 17-06-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI N. K. BILLAIYA ACCOUNTANT MEMBER AND SHRI S. S. GODARA JUDICIAL MEMBER. ITA NOS.1765 /AHD/2013 (ASSESSMENT YEAR:2009-10) THE ASSTT. COMMISSIONER OF INCOME-TAX CIRCLE RACE COURSE CIRCLE BARODA E-3 3 RD FLOOR AAYKAR BHAVAN BARODA 390007 APPELLANT VS. SHRI DHARAMSHIBHAI N PRAJAPATI A-3 RAJLAKSHMI SOCIETY NEW SAMA ROAD BARODA 390002 RESPONDENT PAN: AAQPT6390Q & ITA NOS.1766/AHD/2013 (ASSESSMENT YEAR:2009-10) THE ASSTT. COMMISSIONER OF INCOME-TAX CIRCLE RACE COURSE CIRCLE BARODA E-3 3 RD FLOOR AAYKAR BHAVAN BARODA 390007 APPELLANT VS. SHRI KISHORBHAI D PRAJAPATI A-3 RAJLAKSHMI SOCIETY NEW SAMA ROAD BARODA RESPONDENT PAN: ACQPP5957K ITA NO.1765 & 1766/AHD/2013 (DHARAMSHIBHAI N PRAJAP ATI & KISHORBHAI D. PRAJAPATI)) A.Y. 2009-10 - 2 - /BY REVENUE : SHRI K. MADHUSUDAN SR. D.R. / BY ASSESSEE : NONE /DATE OF HEARING : 20.09.2016 /DATE OF PRONOUNCEMENT : 27.09.2016 ORDER PER S. S. GODARA JUDICIAL MEMBER THESE TWO REVENUES APPEALS FOR A.Y.2009-10 FILED IN CASE OF DIFFERENT ASSESSEES ARISE AGAINST SEPARATE ORDERS OF THE CIT( A)-II BARODA DATED 31.03.2013 AND 28.03.2013 IN CASES NO.CAD/II-273 & 271/11-12; RESPECTIVELY IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT 19 61; IN SHORT THE ACT. 2. A PERUSAL OF THE CASE FILES REVEALS THAT REVENUE S SOLE SUBSTANTIVE GROUND IDENTICAL IN THE TWO APPEALS SEEKS TO REVIVE SHORT TERM CAPITAL GAIN ADDITION OF RS.1 67 77 940/- IN EACH ASSESSEES CASE AS MADE BY THE ASSESSING OFFICER IN ASSESSMENT ORDERS PASSED ON 29.11.2011. 3. WE COME TO RELEVANT FACTS. BOTH THESE ASSESSEES CO-PURCHASED THE IMPUGNED CAPITAL ASSET IN THE NATURE OF A PARCEL OF LAND AT RS NO.607/A SAYAJIPURA VILLAGE DISTRICT BARODA ALONG WITH 5 OT HER CO-VENDEES FOR A GROSS AMOUNT OF RS.18LACS. THESE VENDEES AMENDED THE PURC HASED DEED ON 15.07.2006 SEEKING TO EXCLUDE TWO OF THEM FROM THE ARRAY OF PURCHASERS FOR NOT BEING FARMERS. THESE PARTIES ARRIVED AT AN UNDERST ANDING ON 16.07.2006 TO DETERMINE THE SHARE OF THE OUTGOING PURCHASERS TO 1 4 & 12% TO BE REALIZED AT THE TIME OF SALE OF LAND. THE REMAINING 5 CO-PURCHASER S SOLD THIS LAND ON 16.10.2008 FOR RS.7 68 63 000/-. THESE ASSESSEES D ECLARED THEIR RESPECTIVE SHARE IN SALE PRICE AS RS.1 36 34 800/- AND RS.1 09 16 400/-. THE ASSESSING ITA NO.1765 & 1766/AHD/2013 (DHARAMSHIBHAI N PRAJAP ATI & KISHORBHAI D. PRAJAPATI)) A.Y. 2009-10 - 3 - OFFICER INVOKED SECTION 50C OF THE ACT. HE SOUGHT CONCERNED SUB-REGISTRARS OPINION. THIS AUTHORITY INTIMATED SALE PRICE OF TH E CAPITAL ASSET IN QUESTION TO BE RS.8 56 89 700/-. THE ASSESSING OFFICER EXPRESSED AGREEMENT WITH THE SAME. HE REDUCED PURCHASED PRICE TO RS.18LACS TO ASSESS E ACH OF THE TWO ASSESSEES BEFORE US QUA 1/5 TH SHARE OF THE REMAINING SUM OF RS.8 38 89 700/- COM ING TO RS.1 67 77 940/- TO MAKE THE IMPUGNED SHORT TERM CA PITAL GAIN ADDITION IN THEIR HANDS. 4. THE ASSESSEES PREFERRED SEPARATE APPEALS. THE C IT(A) ALLOWED BOTH CASES BY FOLLOWING OBSERVATIONS ON IDENTICAL LINES. 3.3.1. I HAVE CONSIDERED THE FACTS OF THE CASE AND THE SUBMISSIONS OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. I HAVE ALSO PERUSED THE REPORT OF THE DVO DATED 15.02.2013. THE APPELLANT HAS ALSO SUBMITTED COPY O F THE REPORT ON 19.03.2013. AS PER THE SAID REPORT VALUATION OF THE PROPERTY IS E STIMATED AT RS.1 55 64 925/- AS AGAINST THE DECLARED VALUE OF RS.1 53 72 600/- BY T HE APPELLANT. THUS THERE IS ONLY MEAGER DIFFERENCE BETWEEN THE TWO FIGURES. THIS IS IN CONTRAST TO THE FIGURE OF SALE TAKEN BY THE ASSESSING OFFICER AT RS.1 67 77 940/-( 1/5 TH SHARE OF THE ASSESSEE AFTER REDUCING THE PURCHASE COST OF RS.18 00 000/-FROM TH E SALE VALUE OF THE LAND AS PER THE VALUE ADOPTED FOR THE PURPOSE OF THE STAMP DUTY I.E . RS.8 56 89 700/-). THEREFORE THE CORRECT FIGURE OF SALE AS PER ASSESSING OFFICER SHO ULD HAVE BEEN RS.1 71 37 940/- (RS.8 56 89 700/- DIVIDED BY 5) AND RS.1 67 77 940/ - WAS THE VALUE OF STCG AS PER THE COMPUTATION OF THE ASSESSING OFFICER SINCE AS PER THE REPORT OF DVO THERE IS NEGLIGIBLE DIFFERENCE IN THE SALE VALUE OF THE LAND FROM THE VALUE DECLARED BY THE APPELLANT THE VALUE ADOPTED BY THE ASSESSING OFFIC ER U/S. 50C HAS TO BE IGNORED. THUS THE ADDITION MADE UNDER THIS HEAD IS DIRECTED TO BE DELETED. 5. WE HAVE HEARD BOTH THE PARTIES REITERATING THEIR RESPECTIVE STANDS. THERE IS HARDLY ANY DISPUTE LEFT BY NOW THAT THERE ARISES ONLY A MEAGER DIFFERENCE BETWEEN SALE PRICE (S) DECLARED AND THAT ESTIMATED BY THE DVO I.E. RS.1 53 72 600/- & RS.1 55 64 924/-;RESPECTIVELY. THE CIT(A) CONCLUDES IN THESE CIRCUMSTANCES THAT THIS VARIATION IS VERY MUC H NEGLIGIBLE ONE AS AGAINST THAT TAKEN IN ASSESSMENT ORDER. THE REVENUES ARGU MENTS FAIL TO REBUT THIS FACTUAL POSITION. WE HOLD THIS PECULIAR FACTUAL BA CKDROP THAT THE IMPUGNED ISSUE OF VALUATION OF THE CAPITAL ASSET SOLD IS PURELY A FACTUAL ONE HAVING ITS OWN INTRICACIES BASED ON LOCATION NATURE OF THE PROPER TY AND OTHER SURROUNDING ITA NO.1765 & 1766/AHD/2013 (DHARAMSHIBHAI N PRAJAP ATI & KISHORBHAI D. PRAJAPATI)) A.Y. 2009-10 - 4 - FACTORS. LD. DEPARTMENTAL REPRESENTATIVE DOES NOT PRODUCE ANY MATERIAL ON RECORD SUPPORTING THE REVENUES CASE THAT THE VALUE OF THE CAPITAL ASSET SOLD HAS IN ANY CASE BEEN UNDER PRICED. WE FIND NO REASON A CCORDINGLY TO INTERFERE IN THE CIT(A)S APPEAL FINDING IN BOTH CASES. 6. THESE TWO REVENUES APPEALS ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 27 TH DAY OF SEPTEMBER 2016. SD/- SD/- (N. K. BILLAIYA) ( S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 27/09/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ --. . /0 / DR ITAT AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0