ITO, New Delhi v. M/s. Jallandhar Amritsar Tollways Ltd., New Delhi

I.T.A. NO5127 /DEL/10 1/3 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D NEW DELHI) BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER AND SHRI A.K. GARODIA ACCOUNTANT MEMBER I.T.A. NO. 5127/DEL/2010 ASSESSMENT YEAR : 2007-08 ITO JALLANDHAR AMRITSAR TOLLWAYS WARD-4 (1) LTD. P-2 IST FLOOR NEW DELHI. V. GREEN PARK EXTN. NEW DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AABCJ AABCJ AABCJ AABCJ- -- -6270 6270 6270 6270- -- -F FF F APPELLANT BY : SHRIA A.K. MONGA DR. RESPONDENT BY : NONE. ORDER PER A.K. GARODIA AM: THIS IS REVENUE'S APPEAL FILED AGAINST THE ORDER OF LD CIT(A)-VII NEW DELHI DATED 23.9.2010 FOR ASSESSMENT YEAR 2007-08. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER:- 1. THE ORDER OF THE LD CIT(A) IS ERRONEOUS AND CONTRARY TO THE ACTS & LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD CIT(A) HAS ERRED IN DELETING THE ADDITION OF `.17 08 00/- MADE BY THE ASSESSING OFFICER U/S 50C OF THE INCOME TAX ACT 1961. 3. THE LD CIT(A) IGNORED THE FINDING RECORDED BY THE A SSESSING OFFICER AND THE FACT THAT THE ASSESSEE HAD PURCHASED THE LAND IN . I.T.A. NO.5127/DEL/10 2/3 QUESTION AT RATE LOWER THAN THE CIRCLE RATES FIXES BY THE LOCAL AUTHORITIES. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF NOTICE AND HENCE WE PROCEED TO DECIDE THIS APPEAL OF THE REVENU E EX PARTE QUA THE ASSESSEE. 4. THE LD DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORD ER. A SPECIFIC QUERY WAS RAISED BY THE BENCH AS TO HOW THE PR OVISIONS OF SECTION 50C ARE APPLICABLE TO BUYER OF THE PROPERTY. LD DR OF THE REVENUE HAD NOTHING TO SAY. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD DR OF TH E REVENUE AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES B ELOW. WE FIND IT HAS BEEN NOTED BY THE ASSESSING OFFICER THAT THE ASSESSEE CO MPANY HAS PURCHASED A LAND FROM SMT. SUMAN VASANTRAO PANDHE FOR A CONSIDERATION OF `.3.5 LAKHS ON 30.5.2006. IT IS ALSO N OTED BY THE ASSESSING OFFICER THAT THE ASSESSEE COMPANY HAS PAID STAMP DUTY OF `.82 320/- ACCORDING TO WHICH THE CIRCLE RATE OF TH E LAND IN QUESTION WAS `.20.58. THE DIFFERENCE OF THESE TWO AMOUNTS OF `.17. 08 LAKHS WAS ADDED BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF T HE ASSESSEE. THE PROVISIONS OF SECTION 50C OF THE ACT ARE APPLICAB LE IN THE CASE OF THE SELLER OF THE PROPERTY FOR THE PURPOSE OF COMPUT ING CAPITAL GAIN BUT THAT SECTION IS NOT APPLICABLE FOR MAKING ANY ADDITIO N IN THE HANDS OF THE BUYER THE ASSESSING OFFICER HAS TO BRING SOME OTHER MATERIAL ON RECORD TO ESTABLISH THAT ANY CONSIDERATION OVER AND AB OVE THE DECLARED PURCHASE PRICE WAS PAID BY THE ASSESSEE BUYER. A CLEAR FI NDING IS GIVEN BY THE LD CIT(A) THAT THERE IS NO EVIDENCE FOR APPLY ING THE PROVISIONS OF SECTION 69B BECAUSE NO ADVERSE MATERIAL HAS BEEN BROUG HT ON RECORD BY THE ASSESSING OFFICER SUGGESTING THAT ANY PAYMENT BY T HE ASSESSEE BUYER OVER AND ABOVE THE DECLARED PURCHASE PRICE OF THE PROPERTY. . I.T.A. NO.5127/DEL/10 3/3 CONSIDERING ALL THESE FACTS WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF LD CIT(A). 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSE D. 7. ORDER PRONOUNCED IN THE OPEN COURT ON THE DAY OF 11 TH FEBRUARY 2011. SD/- SD/- (I.P. BANSAL) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 11. 2.2011. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. BY ORDER (ITAT NEW DELHI).