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Income Tax Appellate Tribunal, RANCHI
Before: SHRI N.S.SAINI & SHRI PAVAN KUMAR GADALEDr. R.N.Mahto Principal, vs ITO, Ward-2(4),Ranchi
1 ITA No.22/Ran/2016
IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI
BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No.22/Ran/2016 A.Y. : 2010-2011 Dr. R.N.Mahto Principal, vs ITO, Ward-2(4),Ranchi RTC High School, Buti, Ranchi PAN No. : ABEPM 6987 D Respondent (Appellant) .
Assessee by : Shri M.K.Choudhary, Advocate Revenue by :Shri A.K.Mohanty, JCIT Date of Hearing : 22.05.2018 Date of Pronouncement : 30.05.2018 O R D E R Per Pavan Kumar Gadale, JM: This is an appeal filed by the assessee against the order of CIT(A),
Ranchi, dated 30.10.2015, for the assessment year 2010-11, wherein the
assessee has raised the following ground :-
WHETHER the Assessing Officer was justified in making additions of Rs.2786704/- as income from capital gains ignoring all the facts related with the transfer of land without consideration as donation to the RTC B.Ed. college and without applying the facts of the case and legal provisions.
Brief facts of the case are that the assessee is a firm derives income
from salary and has filed return on 30.04.2010 showing total income at
Rs.1,01,742/- including income from house property, other sources etc.
The return of income was processed u/s.143(1) of the Act and selected for
2 ITA No.22/Ran/2016 scrutiny under CASS. Subsequently notice u/s.142(1) & 143(2) of the Act
to the assessee was issued. In compliance the AR of the assessee
appeared from time to time and filed the relevant documents. The AO on
perusal of the documents produced by the assessee, made additions
under the heads salary, income from other sources and capital gain and
assessed the total income at Rs.30,10,490/- and passed order u/s.143(3)
of the Act, dated 28.12.2012.
Aggrieved by the assessment order, the assessee has filed an
appeal with the CIT(A). In the appellate proceedings ld. AR of the
assessee argued the grounds and reiterated the submissions and ld.CIT(A)
having considered the findings and the submissions of the assessee dealt
on the disputed issues and confirmed the addition made under the head
capital gains of Rs.27,86,704/- and partly allowed the appeal of the
assessee.
Aggrieved by the order of CIT(A), the assessee has filed an appeal
before the Tribunal.
Before us, ld.AR submitted that the CIT(E) erred in confirming the
action of AO in respect of sale deed where the AO has not considered the
submissions in respect of the execution of sale deed. Ld. AR further
submitted that the transfer of land to the B.Ed. College was made on three
dates as per the sale deeds duly registered showing the value of land. The
AR further submitted that there was no transaction of money with regard to
3 ITA No.22/Ran/2016 the transfer of land and the land was agricultural land on which no capital
gains was leviable and prayed for allowing the appeal.
Contra, ld. DR relied on the order of lower authorities.
We have heard the rival submissions and perused the material on
record. Prima facie, the sole crux of the disputed issue is that the assessee
is associated with trust and the assessee has executed a sale deed in
respect of three immovable properties and it was also submitted that the
assessee is also a member of GAVS which runs High School and B.Ed.
College in Ranchi. The assessee has given some land to GAVS on lease
and as per the requirement of the National Council for Teachers Education
(NCTE), the property was registered by the registered sale deed in favour
of the institution. The institution has considered that the assessee has
executed the sale deed in respect of immovable property and the property
has been considered in the books of accounts. The disputed issue arises
as the AO treated the sale of land and determined capital gains and made
addition. Ld.AR submitted before us that the assessee has executed the
sale deed but there is no consideration received and also supported with
the paper book explaining that there is a direction of NCTE and also
managing committee has mentioned that there is no consideration will be
paid to the assessee in this regard. But the facts remain that the sale deed
has not been cancelled and the question of actual income should be
considered. In the present case the ld.AR could not substantiate that the
sale deed is wrongly executed but the prima facie fact remains that the
4 ITA No.22/Ran/2016 sale deed cannot be overlooked and the sale deed is a registered
document of the State Government and is accepted in the eyes of law.
Therefore, grounds taken by the assessee with respect to not considering
the sale consideration cannot be accepted. Accordingly, we are in
conformity with the action of AO as well as CIT(A) and we are not inclined
to interfere with the order of CIT(A) and upheld the same and dismiss the
ground raised by the assessee.
In the result, appeal of the assessee is dismissed. 8.
Order pronounced in the open court on 30/05 /2018
Sd/- Sd/- (N.S.SAINI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi, Dated 30/05/2018 Prakash Kumar Mishra , Sr. Ps Copy of the Order forwarded to : 1. The Appellant –
The Respondent –
The CIT(A) concerned 4. CIT , concerned 5. DR, ITAT, Ranchi 6. Guard file.
BY ORDER, //True Copy// SR.PS, ITAT, RANCHI