ACIT, New Delhi v. M/s. Panipat Properties Pvt. Ltd., New Delhi

ITA 4404/DEL/2010 | 2006-2007
Pronouncement Date: 25-10-2013 | Result: Dismissed

Appeal Details

RSA Number 440420114 RSA 2010
Assessee PAN AAACP1154B
Bench Delhi
Appeal Number ITA 4404/DEL/2010
Duration Of Justice 3 year(s) 24 day(s)
Appellant ACIT, New Delhi
Respondent M/s. Panipat Properties Pvt. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 25-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 25-10-2013
Date Of Final Hearing 23-10-2013
Next Hearing Date 23-10-2013
Assessment Year 2006-2007
Appeal Filed On 01-10-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.4404/DEL/2010 4404/DEL/2010 4404/DEL/2010 4404/DEL/2010 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2006 2006 2006 2006- -- -07 0707 07 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -14(1) ROOM NO.41 14(1) ROOM NO.41 14(1) ROOM NO.41 14(1) ROOM NO.415 5 5 5 C.R.BUILDING I.P. ESTATE C.R.BUILDING I.P. ESTATE C.R.BUILDING I.P. ESTATE C.R.BUILDING I.P. ESTATE NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S PANIPAT PROPERTIES PVT.LTD. M/S PANIPAT PROPERTIES PVT.LTD. M/S PANIPAT PROPERTIES PVT.LTD. M/S PANIPAT PROPERTIES PVT.LTD. 15 1515 15 TH THTH TH FLOOR MOHANDEV BUILDING FLOOR MOHANDEV BUILDING FLOOR MOHANDEV BUILDING FLOOR MOHANDEV BUILDING 13 1313 13- -- -TOLSTOY MARG TOLSTOY MARG TOLSTOY MARG TOLSTOY MARG NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : PAN : PAN : PAN : AAACP1154B. AAACP1154B. AAACP1154B. AAACP1154B. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. Y.KAKKAR SR.DR. RESPONDENT BY : MS. ANJU GOEL CA. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER OF LEARNED CIT(A)-XVII NEW DELHI DATED 26 TH JULY 2010 FOR THE AY 2006-07. 2. THE ONLY GROUND RAISED BY THE REVENUE READS AS UNDE R:- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(A) ERRED IN DELETING THE ADDITION OF RS.17 68 396/- MADE BY THE ASSESSING OFFICER TO THE ASSESSEES INCOME OF CAPITAL GAIN DUE TO ASSESSEES FAILURE TO PROVE GENUINENESS OF EXPENSES TO THIS EXTENT CLAIMED AS COST OF IMPROVEMENT OF THE CAPITAL ASSET. 3. THE FACTS OF THE CASE ARE THAT DURING THE ACCOUNTI NG YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION THE ASSESSEE HAS SHOWN INCOME OF ` 2 24 13 804/- FROM LONG TERM CAPITAL GAINS. THE WORKING OF THE SAME WAS AS UNDER:- ITA-4404/DEL/2010 2 PARTICULARS F.Y. OF PURCHASE/ ADDITION AMOUNT COST INFLATION INDEX ACQUISITION COST PURCHASE SALE PURCHASE COST OF PROPERTY 1992-93 61 00 000 223 497 1 35 95 067 PAID TO LAND & DEVELOPMENT OFFICE 1992-93 3 65 458 223 497 8 14 496 ADDITION TO BUILDING 1992-93 38 737 223 497 86 333 ADDITION TO BUILDING 1993-94 8 02 475 244 497 16 34 550 ADDITION TO BUILDING 1994-95 3 55 594 259 497 6 82 356 PAID TO LAND & DEVELOPMENT OFFICE 1995-96 22 987 281 497 40 657 STAMP DUTY FOR PROPERTY REGISTRATION 1997-98 4 88 000 331 497 7 32 737 TOTAL 81 73 251 1 75 86 196 LESS - SALE VALUE OF PROP ERTY 4 00 00 000 PROFIT ON SALE OF PROPERTY (LONG TERM CAPITAL GAIN) 2 24 13 804 4. THE ASSESSING OFFICER ACCEPTED THE COST OF ACQUISITIO N. HOWEVER WITH REGARD TO COST OF IMPROVEMENT HE PARTLY ACCEPT ED THE SAME AND ACCORDINGLY RE-WORKED OUT THE LONG TERM CAPITAL GAI N OF ` 2 49 50 096/- AS UNDER:- TOTAL SALE CONSIDERATION RS.4 00 00 000/- LESS I. INDEXED COST OF ACQUISITION RS.1 35 95 067 /- II. INDEXED COST OF IMPROVEMENT RS.14 54 537/- RS.1 50 49 904/- LONG TERM CAPITAL GAIN RS.2 49 50 096 /- 5. ON APPEAL BEFORE THE LEARNED CIT(A) HE DELETED THE ADDITION TO THE CAPITAL GAINS WITH THE FOLLOWING FINDING:- 2.4 I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF LD.A R AND PERUSED THE ASSESSMENT ORDER PASSED BY THE AO. IT I S SENT THAT THE APPELLANT HAS DISCLOSED THE VALUE OF THE PROPERTY AS CLAIMED IN THE BALANCE SHEET OF RESPECTIVE ITA-4404/DEL/2010 3 ASSESSMENT YEARS. I FIND FORCE IN THE SUBMISSIONS OF THE LD.AR THAT THE APPELLANT HAS BEEN CLAIMING THE VALUE OF THE PROPERTY IN THE BALANCE-SHEETS OF RESPECTIVE ASSESSMENT YEARS WHICH ARE AVAILABLE ON THE RECORD. THEREFORE CALLING FOR THE PROOF IN RESPECT OF VERY OLD EXPENSES WHICH TH E APPELLANT WAS NOT SUPPOSED TO MAINTAIN AND MAKING DISALLOWANCE ON THAT BASIS WAS NOT JUSTIFIED. IN VIEW O F THE ABOVE THE ADDITION OF RS.17 68 396/- MADE BY THE AO CANNOT BE SUSTAINED. HENCE THE SAME IS DELETED. GROU ND OF APPEAL IS ALLOWED. 6. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES AN D THE FACTS OF THE CASE WE DO NOT FIND ANY INFIRMITY IN THE ORD ER OF LEARNED CIT(A). THE ASSESSMENT YEAR UNDER CONSIDERATION IS 2005-06 AND TH E COST OF IMPROVEMENT IN THE BUILDING WAS DURING THE FY 1992-9 3 TO 1997-98 I.E. EARLIER YEARS. THE SAME WAS DULY DEBITED TO THE ASSESSEES BOOKS OF ACCOUNT AND THE ACCOUNTS OF ALL THE EARLIER YEARS WERE AUDITED. THAT ASSESSMENT OF ALL THE EARLIER YEARS HAS BEEN COMPLETED IN WHICH THE ADDITION TO THE BUILDING AS SHOWN BY THE ASSESSEE IS DULY ACCEPTED. NOW AFTER A CONSIDERABLE TIME GAP IN THE YEAR UNDE R CONSIDERATION THE ASSESSING OFFICER CANNOT DISPUTE THE CORRECTNESS OF TH E COST OF IMPROVEMENT DEBITED IN THE ASSESSEES BOOKS OF ACCOUNT I N THE EARLIER YEARS AND WHICH IS ACCEPTED BY THE REVENUE IN THOSE YE ARS. IN VIEW OF THE ABOVE WE UPHOLD THE ORDER OF LEARNED CIT(A) IN THIS REGARD AND DISMISS THE APPEAL FILED BY THE REVENUE. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED . DECISION PRONOUNCED IN THE OPEN COURT ON 25 TH OCTOBER 2013. SD/- SD/- ( (( (A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 25.10.2013 VK. ITA-4404/DEL/2010 4 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -14(1) ROOM 14(1) ROOM 14(1) ROOM 14(1) ROOM NO.415 NO.415 NO.415 NO.415 C.R.BUILDING I.P. ESTATE NEW DELHI. C.R.BUILDING I.P. ESTATE NEW DELHI. C.R.BUILDING I.P. ESTATE NEW DELHI. C.R.BUILDING I.P. ESTATE NEW DELHI. 2. RESPONDENT : M/S PANIPAT PROPERTIES PVT.LTD. M/S PANIPAT PROPERTIES PVT.LTD. M/S PANIPAT PROPERTIES PVT.LTD. M/S PANIPAT PROPERTIES PVT.LTD. 15 1515 15 TH THTH TH FLOOR MOHANDEV BUILDING FLOOR MOHANDEV BUILDING FLOOR MOHANDEV BUILDING FLOOR MOHANDEV BUILDING 13 1313 13- -- -TOLSTOY MARG NEW DELHI. TOLSTOY MARG NEW DELHI. TOLSTOY MARG NEW DELHI. TOLSTOY MARG NEW DELHI. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR