DCIT Circle-1(3),, Ahmedabad v. Shri Chirag Dashrathbhai Patel,, Ahmedabad

ITA 1933/AHD/2017 | 2014-2015
Pronouncement Date: 27-05-2021 | Result: Dismissed

Appeal Details

RSA Number 193320514 RSA 2017
Assessee PAN ADQPP3433P
Bench Ahmedabad
Appeal Number ITA 1933/AHD/2017
Duration Of Justice 3 year(s) 8 month(s) 29 day(s)
Appellant DCIT Circle-1(3),, Ahmedabad
Respondent Shri Chirag Dashrathbhai Patel,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 27-05-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 27-05-2021
Last Hearing Date 19-03-2020
First Hearing Date 24-03-2020
Assessment Year 2014-2015
Appeal Filed On 28-08-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI MAHAVIR PRASAD JUDICIAL MEMBER & SHRI WASEEM AHMED ACCOUNTANT MEMBER) [THROUGH VIRTUAL COURT] ITA. NOS: 1933 & 1966/AHD/2017 (ASSESSMENT YEARS: 2014-15 & 2012-13) THE DY. COMMISSIONER OF INCOME TAX CIRCLE-1(3) AHMEDABAD SHRI CHIRAG DASHRATHBHAI PATEL 8/B NAVDEEP APARTMENT NR. C.U.SHAH COLLEGE ASHRAM ROAD AHMEDABAD-380014 PAN NO. ADQPP3433P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MOHD. USMAN CIT/DR RESPONDENT BY:SHRI MUKESH PATEL & JIGAR PATEL A.R. ( )/ ORDER DATE OF HEARING : 16-03-2021 DATE OF PRONOUNCEMENT : 27-05-2021 PER MAHAVIR PRASAD J.M. 1. THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (HEREINAFTER CALLED CIT(A)) ORDER NO. CIT(A)- 10/ACIT. CIR 1(3)/10705/2016-17 ORDER DATED 28/06/2017 ARISING OUT OF ITA NOS. 1933 & 1966/AHD/2017 . A.YS. 2014-15 & 2012-13 2 ASSESSMENT ORDER DATED 28/12/2016. REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE BY THE A.O. ON ACCOUNT OF UNDISCLOSED INCOME U/S. 69B OF THE ACT OF RS. 4 04 33 918/-. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS HAVING INCOME FROM SALARY AND RENT FROM MADHAV EDUCATION TRUST AND FROM PARTNERSHIP FIRM. THE ASSESSEE RECEIVES RENTAL INCOME FROM MADHAV EDUCATION TRUST IN RESPECT OF SCHOOL BUILDING AND OTHER AMENITIES. DURING THE ASSESSMENT YEAR 2012-13 LD. A.O. REFERRED CASE TO DISTRICT VALUATION OFFICER FOR VALUATION OF PROPERTY U/S 142A OF THE ACT AND THE DVO SUBMITTED VALUATION REPORT ON 10.03.2015. BASED ON THE BASIS OF FINDING OF DVO ADDITION OF RS. 33 01 27 625/- WAS MADE IN THE ASSESSMENT YEAR 2012-13 IN THE CASE OF ASSESSEE AS UNEXPLAINED INVESTMENT. 3. THEREAFTER ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) WHO GRANTED RELIEF TO THE ASSESSEE ON THE GROUND THAT MERELY ON THE REPORT OF DVO ADDITION CANNOT BE MADE. 4. NOW REVENUE HAS COME BEFORE US STATING THEREIN THAT ORDER OF THE LD. AO SHOULD BE RESTORED. LD. A.R. STATED THAT ORDER OF THE LD. CIT(A) SHOULD BE UPHELD. 5. ON THE OTHER HAND LD. D.R. RELIED ON THE ORDER OF ASSESSING OFFICER. 6. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMPUGNED ORDER AND HEARD BOTH THE PARTIES. NOW QUESTION BEFORE US IS THAT WHETHER ASSESSING OFFICER CAN REFER MATTER TO THE DVO WITHOUT HAVING ANY COGENT MATERIAL BEFORE HIM TO ASCERTAIN TO FAIR MARKET VALUE OF THE PROPERTY. ITA NOS. 1933 & 1966/AHD/2017 . A.YS. 2014-15 & 2012-13 3 7. IN OUR CONSIDERED OPINION THERE HAS TO BE SOME MATERIAL IN POSSESSION/CONSIDERATION OF LD. A.O. BEFORE REFERRING MATTER TO THE DVO FOR VALUATION U/S 142A OF THE ACT AND SIMILAR VIEW HAS BEEN TAKEN BY HONBLE DELHI HIGH COURT IN THE MATTER OF CIT VS. SADHNA GUPTA WHEREIN IT IS HELD THAT IT IS WELL SETTLED LAW THAT UNLESS AND UNTIL THERE IS SOME OTHER EVIDENCE TO INDICATE THAT EXTRA CONSIDERATION OF FLOWED IN THE TRANSACTION OF PURCHASE OF PROPERTY THE REPORT OF THE DVO CANNOT FORM THE BASIS OF ANY ADDITION ON THE PART OF THE REVENUE. 8. AS WE CAN SEE IN THIS PRESENT CASE THERE WAS NO ANY CORROBORATIVE EVIDENCE OTHER THAN THE DVO REPORT WITH THE LD. ASSESSING OFFICER FOR MAKING AN ADDITION SO IN SUCH CASE ADDITION CANNOT BE MADE. WE DO NOT FIND ANY AMBIGUITY IN THE ORDER PASSED BY THE LD. CIT(A) AND IN OUR CONSIDERED OPINION LD. CIT(A) HAS PASSED DETAILED AND REASONED ORDER AND SAME DOES NOT REQUIRE ANY KIND OF INTERFERENCE AT OUR END. 9. IN THE RESULT BOTH THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 27- 05- 2021 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 27/05/2021 RAJESH COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AHMEDABAD