Commissioner Of Income Tax vs. Shri Madan Mohan Joshi

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ITA/84/2013HC Madhya Pradesh15 October 2014Bench: HON'BLE SHRI JUSTICE RAJENDRA MENON2 pages
For Petitioner: Sanjay LalFor Respondent: Advocate General
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the concurrent orders of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal were tenable. The Tribunal found that the Collector's guidelines were primarily for the purpose of stamp duty recovery. Crucially, the AO had rejected the valuation report of the Government valuer without providing any reasons. The appellate authorities, after considering the material on record, found the Government valuer's report to be reasonable and in accordance with the law. The Tribunal concluded that the discretion exercised by the appellate authority and the reasons provided for accepting the valuation report at Rs. 50/- per sq. ft. constituted a finding of fact arrived at after due exercise of power and consideration of available material. Therefore, no justification existed for reconsideration under Section 260-A of the Income Tax Act.

What were the facts?

The assessee, an individual, filed a return of income for Assessment Year 2008-09. The case was selected for scrutiny, and notices under Section 143(2) and 142(1) were issued. The Assessing Officer (AO) made additions to the assessee's income, specifically regarding capital gains on a property. The AO computed the land value based on Collector's guidelines dated 01-04-1981, rejecting the valuation of Rs. 50/- per sq. ft. provided by a Government-registered valuer. The Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT) concurrently accepted the Government valuer's report, finding the Collector's guidelines to be for stamp duty purposes and noting that the AO rejected the valuer's report without providing reasons. The revenue has filed an appeal against these concurrent orders.

What were the issues?

1. Whether the Tribunal erred in law and on facts by accepting the valuation report of the Government valuer at Rs. 50/- per sq. ft. and rejecting the valuation based on Collector's guidelines for the purpose of computing capital gains, despite the AO's rejection of the valuer's report. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the concurrent findings of the lower appellate authorities indicate that the assessee relied on the Government valuer's report. Revenue's Contention: The revenue's appeal is based on the premise that the concurrent orders of the CIT(A) and the ITAT are not tenable. The revenue likely argued that the AO's rejection of the valuer's report and reliance on Collector's guidelines was justified, and the appellate authorities erred in interfering with this finding.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

ITA NO.84/2013 15/10//2014 Shri Sanjay Lal, learned counsel for the appellant.

This is a revenue appeal under Section 260-A of the Income Tax Act,1961, calling in question the tenability of concurrent orders passed by the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal, Indore, The assessee is an individual and has filed return of income for the assessment year 2008-09. The case was selected for scrutiny and notice under section 143(2) was issued by the Income Tax Officer on 08-09-2009, consequently notice under section 142(1) was also issued. The Assessing Officer passed an order of assessment and thereafter made certain additions in the matter of assessment. In was found that the applicant has not paid capital gain on certain property. While making assessment of capital gain the Assessing Officer computed the value of the land based on the collector guidelines issued on 01-04- 1981 and rejected the valuation claimed by the applicant based on the Govt. registered valuer, who showed the rate of the land at Rs.50/- per sq.ft. The Commissioner and the Appellate Tribunal have found that the Collector's guidelines are only guidelines issued for the purpose of recovery of stamp duty where the Govt. valuer has valued the land at Rs.50/- per sq.ft.. While rejecting the report of the Govt. valuer, no reason is given and finding the valuation report of the Govt. valuer to be reasonable in accordance with law, the Commissioner and the Appellate Tribunal have recorded concurrent findings accepting the report of the Govt. valuer. The discretion exercised by the appellate authority and the reasons given by them for accepting the valuation report submitted by the Govt, valuer showing the valuation at Rs.50/- per sq.ft. Is a finding of fact arrived at on due exercise of power and the discretion available with the appellate authority and after considering material available on record, no justification has been been made, which warrants reconsideration in the proceeding under section 260-A of the Income Tax Act. Accordingly, finding no ground made out for indulgence into the matter, this appeal stands dismissed. (RAJENDRA MENON) (SANJAY YADAV) JUDGE JUDGE hsp

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