PARIMAL SOMNATHBHAI PANDIT,AHMEDABAD vs. ITO, WARD-3(2)(4), AHMEDABAD

This appeal has been preferred by the assessee against the order of Ld. CIT(A)-3/ITO Ward-3(2)(4)/354/2017-18 dated 12.12.2018 arising out of assessment order dated 27.12.2017 and assessee has taken following grounds:

Facts of the case are that during the year under consideration assessee has purchased non-agriculture plot situated at Mouje Bopal, Block No. 355/A for a consideration of Rs. 41,40,000/- as per sale deed executed in the office of the Sub Registrar (Ahmedabad-9), Bopal (Reg. No. 2154/2014). Against the said property, assessee has paid stamp duty of Rs. 2,62,500/-. In view of the above, the market value (jantri rate) of the property in question was obtained from Sub Registrar, (Ahmedabad-9), Bopal by issuing notice u/s. 133(6) of the Act. In response, Sub- Registrar (Ahmedabad-9), Bopal vide letter dated 24.11.2017 reported the market value of the property at Rs. 53,54,300/- as against Rs. 41,40,000/- shown in the sale deed. In view of the above, as per order sheet entry dated 30.11.2017, AR of the assessee was asked as to why the provisions of section 56(2)(vii) should not be applied in this case and he was requested to furnish his reply, if any, by 06.12.2017. As no such reply was received by this office by that date, a notice u/s. 142(1) dated 07.12.2017 was issued to the assessee mentioning the above facts and fixing the hearing on 13.12.2017. In response, assessee vide submission dated 26.12.2017 stated as under:-

We have gone through the relevant record and impugned order the appellant contention is that as per the Land Revenue 7/12 Document records the Area of Land at Block No. 355/A, F.P. No. 84/1 Sub Plot No. 6 is 363 square Meter at Boapl, Ahmedabad. There has been a cutting of 15 meters on Plot No. 6 according to the AUDA T.P. Road Scheme, which resulted in 75 square meter cutting on Block No. 355/A in Plot No. 6, Bopal, Ahmedabad. AT the time of preparation of Stamp Duty document the area of land is considered 363 Square Meter instead of 288 square meter (i.e. 363 square meters less 75 square meters cutting Somnathbhai Pandit vs. ITO] A.Y. 2015-16 - 4 - as per the T.P. Scheme) because the Land Revenue records are not updated as the new AUDA T.P. Road Scheme. As per the sale deed made by the transferor Mr. Parimal Somanth Pandit transferred the property at a consideration of Rs. 41,40,000/- which was based on land available to use after the cutting as per the New AUDA T.P. Road Scheme which is 288 square meter only. But to execute the transaction without any further delay the transferor and transferee agreed to pay the Stamp Duty on the total Plot area of 363 Square meter though the actual Plot area transferred was 288 square meter only. Even though Construction permission on this plot given by the Ahmedabad Municipal Corporation the authority for the same, is of 288 Square meters only. The appellant has submitted a copy of construction plan showing the plot area as per record is 363 Square meter and plot area as per site (after deduction) 288.00 Square meter. However, the AO has made addition of Rs. 12,14,300/- by invoking the provision of sec. 56(2)(vii). The appellant wanted to execute the sale deed as soon as possible and doesn’t want to be part of any legal proceeding and stamp duty was paid with bona fide intention.

Ld. AR contention is that at the time of preparation of stamp duty document the area of land was considered 363 square meter instead of 288 square meter that is 75 square meter was gone for town plan scheme purpose and land revenue were not updated as per the new AUDA T.P. Road Scheme for rectification of this mistake is long time consuming process and seller and buyer were both in hurry for the agreement of the above said land, though, payment was made as per Stamp Valuation Authority for 363 Somnathbhai Pandit vs. ITO] A.Y. 2015-16 - 5 - square meter but actual position of 288 square meter has been taken by the appellant.

In the interest of the justice we set-aside this matter to the file of the Ld. AO to visit the site and make the measurement of plot and will also verify the land acquisition documents of 75 square meter by the authorities for town planning scheme. Though, appellant has also filed a copy of the Plan passed by the order wherein sized of the plot is 288 square meter is mentioned.

Thus, we direct the AO to make physical verification of the plot and verify above said documents and thereafter, will decide matter in accordance with law.

In the result, appeal filed by the assessee is allowed for statistical purpose.