Smt. Jayanti Rani Das, Kolkata v. ITO, Ward 2(4), Asansol

ITA 257/KOL/2009 | 2001-2002
Pronouncement Date: 14-01-2011

Appeal Details

RSA Number 25723514 RSA 2009
Assessee PAN AFPPD3583H
Bench Kolkata
Appeal Number ITA 257/KOL/2009
Duration Of Justice 1 year(s) 10 month(s) 19 day(s)
Appellant Smt. Jayanti Rani Das, Kolkata
Respondent ITO, Ward 2(4), Asansol
Appeal Type Income Tax Appeal
Pronouncement Date 14-01-2011
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 14-01-2011
Date Of Final Hearing 22-03-2010
Next Hearing Date 22-03-2010
Assessment Year 2001-2002
Appeal Filed On 24-02-2009
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL A BE NCH : KOLKATA [BEFORE HONBLE SHRI D. K. TYAGI JM AND HONBLE SH RI C. D. RAO AM] ITA NO. 257 (KOL) OF 2009 : ASSESSMENT YEAR : 2001 -02 SMT. JAYANTI RANI DAS -VS.- INCOME TAX OFFICER/WARD-2(4) KOLKATA [PAN : AFPPD 3583 H] ASANSOL. [APPELLANT] [RESPONDENT] APPELLANT BY : SHRI R. N. RAM RESPONDENT BY : SHRI S. C. JA IN PER C. D. RAO A.M. THE ASSESSEE HAS FILED THIS APPEAL FOR AS SESSMENT YEAR 2001-02 AGAINST THE ORDER OF THE LD. CIT(A) ASANSOL DATED 05.12.2008. THE ONLY ISSU E RAISED BY THE ASSESSEE IN THIS APPEAL IS RELATING TO COMPUTATION OF LONG TERM CAPITAL GAIN O N THE SALE OF HOUSE PROPERTY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE WA S IN POSSESSION OF SAID HOUSE PROPERTY SINCE 1971. THE SAID PROPERTY HAS SOLD BY THE ASSES SEE DURING THE PREVIOUS YEAR RELEVANT TO ASSESSMENT YEAR 2001-02 FOR A CONSIDERATION OF RS.5 .00 LAKHS. WHILE COMPUTING THE CAPITAL GAINS THE ASSESSEE HAS ADOPTED THE COST OF THE SAID AT RS.5.00 LAKHS AND AFTER INDEXATION ASSESSEE COMPUTED LONG TERM CAPITAL GAINS AT RS.4 7 9 700/-. NOW CONTENTION OF THE ASSESSEE IS THAT WHILE CALCULATING LONG TERM CAPITAL GAIN ASSE SSEE HAS NOT TAKEN THE MARKET VALUE OF THE PROPERTY AS ON 01.04.1981 AND THEREAFTER THE COST O F INFLATION INDEX ON SUCH FAIR MARKET VALUE SHOULD BE ADOPTED WHILE CALCULATING LONG TERM CAPIT AL GAIN. HOWEVER THE ASSESSING OFFICER HAS ASSESSED LONG TERM CAPITAL GAIN AT RS.4 79 700/- AN D THE LD. CIT(A) HAS ALSO CONFIRMED THE SAME. 3. AGGRIEVED BY THIS NOW THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING BEFORE US LD. COUNSEL AP PEARING ON BEHALF OF THE ASSESSEE HAS SUBMITTED THAT ALTHOUGH THE ASSESSEE BY IGNORANCE A ND INTRICACY OF INCOME-TAX LAWS WRONGLY COMPUTED HER LONG TERM CAPITAL GAIN WITHOUT TAKING INTO CONSIDERATION THE FAIR MARKET VALUE AS ITA NO. 257/KOL/20 09 2 ON 01.04.1981. THE DUTY IS CAST ON THE REVENUE AUT HORITIES ALSO TO TAKE FAIR MARKET VALUE AS ON 01.04.1981 WHILE GIVING COST INFLATION AND WHILE CA LCULATING CAPITAL GAINS. HOWEVER THE SAME HAS NOT BEEN CONSIDERED BY THE REVENUE AUTHORITIES. HE FURTHER CONTENDED THAT THE ASSESSEE IS NOT LIABLE TO PAY TAX IF THE REVENUE HAS ADOPTED TH E VALUE AS ON 01.04.1981 AND SUBSEQUENTLY ENHANCED THE SAME BY COST OF INFLATION INDEX. NO CA PITAL GAINS WILL ARISE IN THIS CASE. HE FURTHER RELIED ON SEVERAL CASE LAWS ON THE RATIO THAT DUTY IS CAST ON THE REVENUE TO ASSESS THE INCOME OF THE ASSESSEE AS PER THE ACT. IN THIS CASE THE REVEN UE HAS NOT COMPUTED THE CAPITAL GAINS AS PER LAW. HE REQUESTED TO SET ASIDE THE ORDERS OF THE RE VENUE AUTHORITIES AND DIRECT THE ASSESSING OFFICER TO RECOMPUTE THE CAPITAL GAINS AS PER LAW. 5. ON THE OTHER HAND THE LD. DEPARTMENTAL REPRESEN TATIVE RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF THE MATERIAL AVAILABLE ON RECORD WE ARE OF THE CONSIDERED VIEW THAT THOUGH T HE ASSESSEE HAS WRONGLY COMPUTED LONG TERM CAPITAL GAINS THE ASSESSING OFFICER IS DUTY BOUND TO RECOMPUTED THE INCOME OF THE ASSESSEE AND LONG TERM CAPITAL GAINS SHOULD BE CALCULATED BY APP LYING PROVISIONS OF SECTION 55(2)(B)(I) READ WITH 2 ND PROVISO TO SECTION 48 OF THE INCOME TAX ACT. THERE FORE IN THE INTEREST OF JUSTICE WE SET ASIDE THE ORDERS OF THE REVENUE AUTHORITIES ON THIS ISSUE AND REMIT BACK TO THE FILE TO THE ASSESSING OFFICER TO RECOMPUTE THE LONG TERM CAPITA L GAIN AS PER LAW AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14. 01. 2011. SD/- SD/- [ D. K. TYAGI ] [ C. D. RAO ] JUDICIAL MEMBER ACCOUN TANT MEMBER DATED : 14. 01. 2011. ITA NO. 257/KOL/20 09 3 COPY FORWARDED TO THE - 1. SMT. JAYANTI RANI DAS C/O. ASHISH KUMAR DAS 150/1 6 KABI NABIN SEN ROAD KAJI PARA DUM DUM NAGER BAZAR KOLKATA-700 028. 2. INCOME TAX OFFICER/WARD-2(4) PARMER BUILDING G.T. ROAD ASANSOL. 3. CIT(A)- (4) CIT- 5. D.R. I.T.A.T. KOLKATA. [TRUE COPY] BY ORDER DEPUTY/ASSISTANT REGISTRAR (KKC) I .T.A.T. KOLKATA.