SHRI RUPAL BANDI, Indore v. The ITO Ward 3(1), Indore

ITA 418/IND/2014 | 2008-2009
Pronouncement Date: 28-10-2016 | Result: Allowed

Appeal Details

RSA Number 41822714 RSA 2014
Assessee PAN AIPPB1917Q
Bench Indore
Appeal Number ITA 418/IND/2014
Duration Of Justice 2 year(s) 5 month(s) 1 day(s)
Appellant SHRI RUPAL BANDI, Indore
Respondent The ITO Ward 3(1), Indore
Appeal Type Income Tax Appeal
Pronouncement Date 28-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 28-10-2016
Assessment Year 2008-2009
Appeal Filed On 27-05-2014
Judgment Text
RUPAL BANDI ITA NO. 418/IND/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE .. ..!' #$ # !% BEFORE SHRI D.T. GARASIA JUDICIAL MEMBER AND SHRI O.P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 418/IND/2014 ASSESSMENT YEAR: 2008-09 RUPAL BANDI INDORE PAN AIPPB 1917 Q :: APPELLANT VS ITO WARD 1(3) INDORE :: RESPONDENT REVENUE BY SHRI SUDHIR PADLIYA ASSESSEE BY SHRI MOHD. JAVED ! ' #$ DATE OF HEARING 22.9.2016 %&'( #$ DATE OF PRONOUNCEMENT 28.10.2016 * O R D E R PER SHRI D.T. GARASIA JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)I INDORE DATED 31.3.201 4. RUPAL BANDI ITA NO. 418/IND/2014 2 2. THE SHORT FACTS OF THE CASE ARE THAT IN THE RETURN F ILED IN RESPONSE TO NOTICE U/S 148 OF THE ACT THE ASSESSE E UNDER THE HEAD CAPITAL GAIN HAS SHOWN SALE CONSIDERATIO N OF RS.25 01 000/- ON THE SALE OF AGRICULTURAL LAND IN V ILLAGE BICHOLI MARDANA TEHSIL INDORE. THE ASSESSING OFFICER ASKED THE ASSESSEE TO CLARIFY THE VALUE OF THE PROPERTY ASSESSED BY THE STATE GOVT. AUTHORITY I.E. REGISTRAR O F STAMPS INDORE AT RS.65 05 000/- AGAINST THE SALE CONSIDERATION SHOWN BY THE ASSESSEE AT RS.25 01 000/- AS ALSO THE REASON FOR DEPRESSED VALUE OF PROPERTY AND ALSO TO SHOW WHY THE VALUE ASSESSED BY THE REGISTRAR OF STAMPS SHOULD NOT BE TAKEN FOR CALCULATION OF LONG TERM CAPITAL GAIN. IN REPLY THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS RECEIVED SALE CONSIDERATION OF RS.25 01 000/- AND RS.25 00 000/- HAS BEEN DEPOSITED IN RURAL ELECTRIFIC ATION BOND AND AFTER CLAIMING EXEMPTION U/S 54EC THERE IS NO CAPITAL GAIN. ON CONSIDERATION OF THE SUBMISSIONS OF TH E RUPAL BANDI ITA NO. 418/IND/2014 3 ASSESSEE THE ASSESSING OFFICER DID NOT AGREE WITH TH E SAME AND ADOPTED THE VALUE OF SALE CONSIDERATION DETERMINED U /S 50C BY THE REGISTRAR OF STAMPS AT RS.65 05 000/-. 3. FELT AGGRIEVED THE ASSESSEE WENT IN APPEAL TO THE LEARNED CIT(A) AND THE LEARNED CIT(A) IN HIS TURN DID NOT FIND FORCE IN THE APPEAL AND DISMISSED THE SAME. NOW TH E ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SI DES. WE FIND THAT AN IDENTICAL ISSUE HAD COME UP BEFORE THE TRIBUNAL IN THE CASE OF SHRICHAND MAKHIJA S. ITO; ITA N O. 426/IND/2016 AND THE TRIBUNAL VIDE ITS ORDER DATED 8.6.2016 HAS DECIDED THE ISSUE AS UNDER :- THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 19.2.2016 OF THE LEARNED CIT(A)-22 NEW DELHI HAVING CONCURRENT JURISDICTIO N OF CIT(A) INDORE. 2. THE ONLY GROUND TAKEN BY THE ASSESSEE IN THIS APPEAL IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS.3 89 750/- BY INVOKING PROVISIONS OF SECTION 50C OF THE ACT. RUPAL BANDI ITA NO. 418/IND/2014 4 3. BRIEF FACTS OF THE CASE ARE THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE SOLD AGRICULTURAL LAND SITUATED AT VILLAGE TEJPUR GADBADI TEHSIL INDORE WHICH WAS IN THE JOINT NAME OF SHRI PANKAJ MAKHIJA FOR RS.10 79 500/- (MARKET VALUE) ON 6.8.2005 BUT IN THE RETURN OF INCOME THE ASSESSEE HAS TAKEN SALE CONSIDERATION OF RS. 1 50 000/- (1/2 SHARE) FOR THE CALCULATION OF LONG TERM CAPITAL GAI N. AFTER INDEXATION THE ASSESSEE HAS SHOWN RS. 30 475/- AS INCOME FROM LONG TERM CAPITAL GAIN IN T HE COMPUTATION OF INCOME. THE ASSESSING OFFICER WHILE CONSIDERING THE CASE OF THE ASSESSEE CALCULATED THE LONG TERM CAPITAL GAIN ON AGRICULTURAL LAND AT RS.4 20 225/- WHEREAS IN THE COMPUTATION FILED THE ASSESSEE HAS SHOWN THE SAME AT RS.30 475/-. THE ASSESSING OFFICER THEREFORE ADDED RS.3 89 750/- T O THE TOTAL INCOME OF THE ASSESSEE. 4. BEING AGGRIEVED WITH THE ADDITION MADE BY THE ASSESSING OFFICER THE ASSESSEE PREFERRED APPEAL BEFORE THE LEARNED CIT(A). THE LEARNED CIT(A) CONSIDERING THE FACTS OF THE CASE AND THE SUBMISSIONS OF THE ASSESSEE CONFIRMED THE ACTION O F THE ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. BEFORE ME THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING THE ADDITION WITHOUT ANY BASIS. HE SUBMITTED THAT THE ASSESSING OFFICER WHO IS NOT A TECHNICAL EXPERT INSTEAD OF ESTIMATING THE LONG TERM CAPITAL GAIN HIMSELF SHOULD HAVE REFERRED THE MATTER TO TH E DVO FOR VALUATION OF AGRICULTURAL LAND. THE LEARNED COUNSEL FOR THE ASSESSEE ALSO RELIED UPON THE RUPAL BANDI ITA NO. 418/IND/2014 5 DECISION OF THE JODHPUR BENCH OF THE TRIBUNAL IN TH E CASE OF MEGHRAJ BAID VS. ITO; (2008) 114 TTJ (D) 84 1. 6. ON THE OTHER HAND THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE LONG TERM CAPITAL GAIN AS CALCULATED IN TH E CASE BY THEM IS FULLY JUSTIFIED. 7. I HAVE HEARD BOTH THE SIDES. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES I AM OF THE VIEW THAT THE ASSESSING OFFICER WAS NOT AN EXPERT IN CALCULATING THE VALUE OF THE AGRICULTURAL LAND SOLD AND AS SUCH IT WAS INCUMBENT UPON HIM TO REFER THE MATTER TO THE DVO FOR VALUATION OF THE SAME. A SIMILAR ISSUE WAS DECIDED BY JODHPUR BENCH OF THE TRIBUNAL IN THE CASE OF MEGHRAJ BAID VS. ITO; (2008 ) 114 TTJ (D) 841 WHEREIN THE ASSESSING OFFICER WAS DIRECTED TO REFER THE ISSUE TO THE DVO. CONSIDERING THIS ASPECT OF THE MATTER I DIRECT THE ASSESSING OFFICER TO REFER THE MATTER TO THE DVO FOR CALCULAT ION OF THE SALE OF AGRICULTURAL LAND AND ACCORDINGLY COMPUTE THE LONG TERM CAPITAL GAIN THEREON. I ORDER ACCORDINGLY. 5. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THE TRIBUNAL WE DIRECT THE ASSESSING OFFICER TO REFER T HE MATTER TO THE DVO FOR CALCULATION OF THE SALE OF AGRICULTURAL L AND AND ACCORDINGLY COMPUTE THE LONG TERM CAPITAL GAIN THERE ON AFTER PROVIDING THE ASSESSEE REASONABLE OPPORTUNITY OF BEING HEARD. RUPAL BANDI ITA NO. 418/IND/2014 6 THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 28 OCTOBER 2016. SD/- SD/- ( ..!') (..) #$ (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 28 OCTOBER 2016. DN/ RUPAL BANDI ITA NO. 418/IND/2014 7