ITO, KOTA vs. MANJU DEVI MODI, KOTA

PER SHRI KUL BHARAT, JM.

This Appeal by the Revenue is directed against the order of Ld. CIT (A),

Rawatbhata Road, Kota dated 24/02/2016 pertaining to A.Y. 2010-11.

The Revenue has raised the following grounds of appeal:-

“On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in:-

made u/s 50C of the Income-Tax Act, 1961.

2 ITA No. 440/JP/2016. Smt. Manju Devi Modi, Kota.

the assessment u/s 147/144/143(3) of the Income Tax Act, 1961 vide order dated

30.03.2014. While framing the assessment the Assessing Officer made addition of

Rs. 76,82,000/- by invoking the provision of u/s 50C of the Act. Aggrieved by this,

the assessee preferred an appeal before Ld. CIT(A), who after considering the

submissions allowed the appeal.

made in the written brief and supported the order of the Ld. CIT(A).

and gone through the order of the authorities below. Ld. CIT(A) has given a finding

of fact by observing as under:-

“As the matter was pending before the Rajasthan Tax Board, Ajmer, the AO should have waited till the decision of Rajasthan Tax Board, Ajmer and revised the assessed income after determination of value in such appeal/reference. (iv) The property in question was a plot without any construction and the same was not converted into a commercial plot. As there was no construction on the plot, the nature of property could not be decided on the basis of its actual user also. Valuation by changing the user of plot was apparently not correct. (v) In my opinion, the value assessed u/s 50C is the value assessed at the time of registration and is the value certified u/s 54 by the Stamp Valuation Authority. The value assessed by Collector (Stamps), Tax Board etc. falls in the category of “value as so revised in such appeal or revision or reference” [this phrase is taken from section 155(15)].

3 ITA No. 440/JP/2016. Smt. Manju Devi Modi, Kota.

Subsequently, the Rajasthan Tax Board vide their order dated 07/04/2014 have set aside the order of the Collector (Stamps) and aksed him to pass the order afresh after giving the parties opportunity of being heard, and physical inspection etc of the property in question. This fact was in the notice of the A.O. as can be seen in his remand report dated 06/02/2015, wherein the mentioned that the assessee has file a petition u/s 154 for revision of the value in view of the Rajasthan Tax Board order dated 07/04/2014 and sought directions of CIT(A) on referring the matter to the Valuation officer in view of the pendency of the appeal. Hence it was not a new fact or evidence. Under the circumstances, the very basis on which action u/s 148 was taken also does not survive the test of legality. Even on the merits of the case, considering the above, it can be held that for the purposes of section 50C, the value of property as assessed by Stamp Valuation Authority (in this case Dy. Registrar, Kota-II) is the correct value as on date. The subsequent valuation on appeal or revision or reference is to be dealt u/s 155(15). Therefore, the value assessed by Dy. Registrar, Kota-II at Rs. 59,50,000/- should have been taken as value u/s 50C. It is open to the AO to take recourse to the provisions of section 155(15) in case there is any upward revision by the Collector (Stamps) after his decision in compliance of the directions of the Rajasthan Tax Board, Ajmer. Considering the above, the AO is directed to delete the addition of Rs. 76,82,000/- based on the assessment order dated 31/03/2014 passed u/s 147/144/143(3). This ground of appeal is treated as allowed.”

6.1 During the course of hearing, Ld. Counsel for the assessee drew our attention

to Section 155(15) of the Act. As per this provision a capital gain arising from the

transfer of a capital asset, being land or building or both, is computed by taking the

full value of the consideration received or accruing as a result of the transfer to be

the value adopted or assessed by any authority of a State Government for the

4 ITA No. 440/JP/2016. Smt. Manju Devi Modi, Kota.

purpose of payment of stamp duty in accordance with sub-section (1) of section

50C, and subsequently such value is revised in any appeal or revision or reference

referred to in clause (b) of sub-section (2) of that section, the Assessing Officer shall

amend the order of assessment so as to compute the capital gain by taking the full

value of the consideration to be the value as so revised in such appeal or revision or

reference; and the provision of section 154 shall, so far as may be, apply thereto,

and the period of four years shall be reckoned from the end of the previous in which

the order revising the value was passed in the appeal or revision or reference. Since

Ld. CIT(A) has kept such recourse open to the Assessing Officer. Therefore, we do

not see any reason to interfere into the finding of the Ld. CIT(A), same is hereby

affirmed. This ground of revenue’s appeal is dismissed.

Sd/- Sd/- ( HkkxpUn½ ( dqy Hkkjr) ( BHAGCHAND) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated: 26/09/2017 Pooja/ आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

5 ITA No. 440/JP/2016. Smt. Manju Devi Modi, Kota.