SRI NIHAR RANJAN BEHERA,BHUBANESWAR vs. ITO, WARD-2(2), BHUBANESWAR

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ITA 351/CTK/2017Status: DisposedITAT Cuttack17 May 2018AY 2009-104 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) did not provide findings on the assessee's submissions and evidence regarding the property's benchmark value. The matter was set aside and remanded for fresh adjudication.

What were the facts?

The assessee sold land for Rs. 53,72,400. The Assessing Officer treated the entire amount as income due to lack of response from the assessee. The CIT(A) upheld the assessment order without verifying supporting documents.

What were the issues?

Whether the CIT(A) erred in not examining the documentary evidence presented by the assessee regarding the sale consideration of land and whether the matter should be readjudicated.

Which sections of the Income-tax Act were involved?

Section 50C(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK

Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE

For Appellant: Shri S.K.Jena, AR
For Respondent: Shri D.K.Pradhan, DR
Hearing: 17/05Pronounced: 17/05

1 ITA No .351/ CTK/ 2017 Asse ssment Year : 20 09- 201 0

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK

BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No.351/CTK/2017 Assessment Year : 2009-2010

Sri Nihar Ranjan Behera, Vs. ITO, Ward 2(2), At:Plot No.4136, Badagada Bhubaneswar. Village, Badagada Brit Colony, Badagarh, Bhubaneswar. PAN/GIR No.AKYPB 4395 F (Appellant) .. ( Respondent)

Assessee by : Shri S.K.Jena, AR Revenue by : Shri D.K.Pradhan, DR

Date of Hearing : 17/05/ 2018 Date of Pronouncement : 17/05/ 2018

O R D E R Per N.S.Saini, AM This is an appeal filed by the assessee against the order of the

CIT(A)- 1, Bhubaneswar dated 27.6.2017 for the assessment year 2009-

2010.

2.

Ground No.1 of appeal reads as under”

“ For that the impugned order of assessment passed by the Ld. A.O u/s.147 of the Act, to reopen the assessment, is legally impermissible particularly there were no tangible materials available on record in order to reopen the assessment, as such the appellant had no taxable income for the year under appeal. However the Ld. A.O was taken up the reassessment proceeding by basing on the reasons of the erstwhile assessing officer, which is non application of mind on his part. Thus the reopening as well as the impugned assessment order has been incorrectly made by

2 ITA No .351/ CTK/ 2017 Asse ssment Year : 20 09- 201 0

the Ld. A.O, therefore unsustainable and impermissible under law.” 3. No submissions were advanced by ld A.R. of the assessee,

therefore, this ground is dismissed for want of prosecution.

4.

Ground Nos.2 & 3 read as under:

2.

For that despite proper compliance with supporting documents were produced by the appellant before the Ld. CIT (A) during the course of hearing of the first appeal, the Ld. CIT (A) without verifying the same simply up hold the impugned assessment order. The Ld. CIT (A) has given an erroneous conclusion that the land sold by the appellant and the entire consideration amount is subjected to short term capital gain, despite the fact that the land in question is an ancestral agricultural land inherited by the appellant from his deceased father. Further the documents are available with the appellant which established that fraud has been practiced by the purchaser in increasing the value of the land in question at the time of transfer. Therefore, the Ld. CIT (A) is erred in not examine those documents presented by the appellant during the course of hearing of the first appeal. Under such circumstances the orders in the forum below is liable to be set aside for readjudication.

3.

For that in the present case both the Ld. A.O as well as Ld. CIT(A) have not examine the documentary evidences presented by the appellant and without providing proper opportunity the impugned orders have been passed by the authorities below, therefore the orders suffer from non application of mind and violates rules of natural justice, hence impermissible under Law.”

5.

The brief facts of the case are that the Assessing Officer observed

that as per sale deed dated 28.2.2009, the assessee has received

Rs.53,72,400/- from Mr Chelapa Viswanathan as sale consideration of

land bearing Khata No.1494/1762, Plot No.1673, Area Ac.0.242 dec.

Mouza-Bhubaneswar Sahara, Unit No.35, Badagada, Thana No.76 during

the financial year 2008-09. Accordingly, he show caused the assessee.

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Since there was no response from the assessee by providing

corroborative evidence to substantiate his claim, the Assessing Officer

inferred that the assessee had nothing to say and added the entire

amount of Rs.53,72,400/- as income of the assessee under the head

“Long term capital gains”.

6.

Before the CIT(A), the assessee made written submissions, which

are quoted in para 4 of the order of the CIT(A).

7.

The contention of ld A.R. by way of this appeal is that the

documents and evidences which were produced before the CIT(A) and the

arguments of the assessee were not considered by the CIT(A) before

disposing the appeal of the assessee and, therefore, the matter should be

restored back to the file of the CIT(A) for giving his findings on the

evidences and submissions of the assessee.

8.

Ld D.R. had no objection to the above contention of ld A.R. of the

assessee.

9.

After considering the rival submissions and perusing the orders of

lower authorities, we find from the order of the CIT(A) that the assessee

has given Bench Mark Government Valuation rate for Kissam Sarada II for

stamp duty purpose. The assessee contended that the Bench Mark value

of the property in question was Rs.5,32,400/- and the assessee has sold

the same for Rs.6,05,000/-. As the consideration shown was more than

the Bench Mark value as per the provisions of Section 50C(1), no addition

was called for. The CIT(A) has not given his findings on the above

submissions and evidences filed by the assessee. We, therefore, set

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aside the orders of lower authorities and remand the issue back to the file

of the CIT(A) for adjudicating the same afresh after allowing reasonable

opportunity of hearing to the assessee. Thus, the grounds of appeal of

the assessee are allowed for statistical purposes.

10.

Ground Nos.4 and 5 of appeal are general in nature and hence,

requires no separate adjudication.

11.

In the result, appeal of the assessee is partly allowed.

Order pronounced on 17 /05/2018. Sd/- sd/- (Pavan Kumar Gadale) (N.S Saini) JUDICIALMEMBER ACCOUNTANT MEMBER Cuttack; Dated 17 /05/2018 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Sri Nihar Ranjan Behera, At:Plot No.4136, Badagada Village, Badagada Brit Colony, Badagarh, Bhubaneswar 2. ITO, Ward 2(2), The Respondent. Bhubaneswar 3. The CIT(A)-1, Bhubaneswar BY ORDER, 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. SR.PRIVATE SECRETARY //True Copy// ITAT, Cuttack

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