M/s. Vijay Industries Corporation, Kolkata v. ITO, Ward - 36(4), Kolkata, Kolkata

ITA 2064/KOL/2010 | 2006-2007
Pronouncement Date: 04-01-2011

Appeal Details

RSA Number 206423514 RSA 2010
Bench Kolkata
Appeal Number ITA 2064/KOL/2010
Duration Of Justice 1 month(s) 19 day(s)
Appellant M/s. Vijay Industries Corporation, Kolkata
Respondent ITO, Ward - 36(4), Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 04-01-2011
Appeal Filed By Assessee
Bench Allotted SMC
Tribunal Order Date 04-01-2011
Assessment Year 2006-2007
Appeal Filed On 15-11-2010
Judgment Text
SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA () BEFORE . . . . . . . . ) [BEFORE HONBLE SRI D. K. TYAGI JM] ! ! ! ! / I.T.A NO. 2064/KOL/2010 '#$ %&' '#$ %&' '#$ %&' '#$ %&'/ // / ASSESSMENT YEAR : 2006-07 M/S. VIJAY INDUSTRIES CORPORATION -VS- INCOME-TAX OFFICER WD-36(4) KOLKATA (PA NO.AADFV 0357 Q) ()* / APPELLANT ) (+)*/ RESPONDENT ) FOR THE APPELLANT: SRI J. KAUSHIK FOR THE RESPONDENT : SRI PIJUSH KOLHE / ORDER THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF THE LD. CIT(A) KOLKATA DATED 19.08.2010 FOR THE ASSESSMENT YEAR 2 006-07 ON THE FOLLOWING SOLE GROUND : 1. FOR THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN UPHOLDING THE LONG TE RM CAPITAL GAIN ON SALE OF LAND OF RS.1 99 333/- TAKING BY THE INCOME-TAX OFFICER INST EAD OF RS.42 333/- UNDER THE PROVISION OF SUB-SECTION 2 OF SECTION 50C OF THE I. T. ACT 1961. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE S OLD TWO PLOTS OF LAND FOR TOTAL CONSIDERATION OF RS. 1 LAC. WHILE COMPUTING THE CA PITAL GAINS THE ASSESSEE TOOK THE VALUE FOR THE PURPOSE OF STAMP DUTY AT RS.1 25 000/-. HOWEVE R ON PERUSAL OF THE SALE DEED THE ASSESSING OFFICER FOUND THAT THE VALUE FOR THE PURPOSE OF STA MP DUTY WAS ACTUALLY RS.2 82 000/-. BEFORE THE ASSESSING OFFICER THE STAND OF THE ASSESSEE WAS THAT THE PLOTS WERE OCCUPIED BY LOCAL RESIDENTS AND SO THE VALUE TAKEN BY THE STAMP VALUA TION AUTHORITY WAS FAR MORE THAN THE FAIR MARKET VALUE. THIS EXPLANATION WAS NOT ACCEPTED BY THE ASSESSING OFFICER AS THE ASSESEE HAS NOT DISPUTED THE VALUE TAKEN BY THE STAMP VALUATION AUTHORITY IN ANY APPEAL OR REVISION AND SUBSTITUTED THE FIGURE OF RS.2 82 000/- AS TOTAL SA LE CONSIDERATION APPLYING THE PROVISION OF SECTION 50C OF THE ACT. BEFORE THE LD. CIT(A) THE ASSESSEE REITERATED THE SAME SUBMISSIONS AS WERE MADE BEFORE THE ASSESSING OFFICER BUT THE ACTI ON OF THE ASSESSING OFFICER WAS CONFIRMED BY THE LD. CIT(A). BEFORE ME THE LD. COUNSEL FOR T HE ASSESEE SUBMITTED THAT BEFORE THE INCOME-TAX OFFICER THE ASSESSEE DISPUTED THE VALUAT ION TAKEN BY THE ASSESSING OFFICER BY SUBMITTING AS UNDER : 4)A) DURING THE YEAR THE CLIENT FIRM HAS SOLD IMMO VABLE PROPERTY BEING ALL THAT DANGA LAND PRESENT CONVERTED WITH BASTU LAND WITH A STRUC TURE CONTAINING BY ESTIMATION AN 2 AREA OF 4 KATHA 2 CHATTACK 41 SQ. FT. OR 6/9/10 DE CIMAL MARE LYING AND SITUATED AT VILLAGE AND MOUZA KATLIA P.S DOMJUR DISTRICT HOWR AH AT A CONSIDERATION PRICE OF RS. 1 LAKH THE SAME HAS BEEN VALUED BY STAMP VALUATION AUTHORITY AT RS.2 82 000/-. . B) THE SAID IMMOVABLE PROPERTY WAS OCCUPIED BY THE LOCAL RESIDENTS AND WAS USED BY THEM AS SOCIAL AND SPORTS CLUB. THIS FACT CAN BE V ERIFIED INDEPENDENTLY BY YOUR GOODSELF BY DIRECTING ON THE SPOT ENQUIRY. C) THE CLIENT FIRM CLAIMS THAT THE VALUE ADOPTED BY THE STAMP VALUATION AUTHORITY UNDER SUB-SECTION 1 OF SECTION 50C OF THE I. T. ACT EXCE EDS THE FAIR MARKET VALUE OF THE PROPERTY AS ON THE DATE OF TRANSFER. D) THE CLIENT VEHEMENTLY OPPOSES THE VALUE ADOPTED BY THE STAMP VALUATION AUTHORITY BE DEEMED TO BE THE FULL VALUE OF THE CONSIDERATION FO R THE PURPOSE OF SECTION 48 OF THE I. T. ACT 1961. PLACING RELIANCE ON THESE SUBMISSIONS THE LD. COUNS EL FOR THE ASSESSEE ARGUED THAT AS PER THE PROVISION OF SUB-SECTION (2A) OF SECTION 50C THE A SSESSING OFFICER SHOULD HAVE REFERRED THE MATTER TO THE VALUATION CELL WHICH WAS NOT DONE BY HIM. HE THEREFORE PRAYED THAT NECESSARY DIRECTION MAY KINDLY BE GIVEN TO THE ASSESSING OFFI CER. 3. ON THE OTHER HAND THE LD. DR RELIED ON THE ORDE RS OF THE LOWER AUTHORITIES AND URGED BEFORE THE BENCH TO CONFIRM THE SAME. 4. AFTER HEARING THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSING THE MATERIAL AVAILABLE ON RECORD I FIND FORCE IN THE CONTENTION OF THE LD. C OUNSEL FOR THE ASSESSEE THAT SINCE THE ASSESEE HAD DISPUTED THE VALUE ADOPTED BY THE STAMP VALUATI ON AUTHORITY THE ASSESSING OFFICER SHOULD HAVE REFERRED THE MATTER TO THE VALUATION CELL. IN VIEW OF THIS THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION THAT FO R VALUATION OF THE PLOTS THE MATTER BE REFERRED TO THE VALUATION CELL AND AFTER OBTAINING VALUATION REPORT THE CAPITAL GAIN BE RECOMPUTED. THEREFORE THE APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- . . (D. K. TYAGI) JUDI CIAL MEMBER ( - - - -) )) ) DATED : 4TH JANUARY 2011 %./ '#01 '2% JD.(SR.P.S.) 3 3 +''4 54&6- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT M/S. VIJAY INDUSTRIES CORPORATION C/O S RI R. P. SHARMA ADVOCATE 19D MUKTARAM BABU STREET KOLKAT A-700 007 2 +)* / RESPONDENT : ITO WARD-36(4) KOLKATA. 3 . ' # / THE CIT KOLKATA 4 . ' # ( )/ THE CIT(A) KOLKATA 5 . %=' +'# / DR KOLKATA BENCHES KOLKATA 4 +'/ TRUE COPY #>/ BY ORDER ? 1 /DEPUTY REGISTRAR .