DEEPAK N.JAIN,CHENNAI vs. ITO NON CORPORATE WARD 4(3), CHENNAI

Shri Deepak N. Jain, the assessee, sold a property for which the value adopted for stamp duty was more than the value declared in the sale deed. Based on this information, the Assessing Officer reopened the assessment and after affording opportunity, adopted the value shown in the sale deed as sale consideration and added the difference sum as his income under the head ‘Long Term Capital Gains’. Aggrieved against that order, the assessee filed an appeal before the CIT(A). The ld.CIT(A) dismissed the appeal. Aggrieved against that order, the assessee filed this appeal.

The ld.AR pleaded that the assessee sold an agricultural land situated at village GoI, Ummedabad for Rs.2,51,000/- on 07.05.2014. However, the registration authorities have adopted the stamp duty value at Rs.21,17,544/-. Though it was pleaded before the ld.CIT(A) that the impugned land is agricultural land at Rajasthan, which is not a capital asset within the meaning of Section 2(14) and hence the assessment made by the Assessing Officer is not correct, the ld.CIT(A) without appreciating the facts and circumstances of the case, has dismissed the appeal and hence, he pleaded that the assessee’s appeal be allowed.

Per contra, the ld.DR submitted that the nature of land is not examined by the Assessing Officer, as seen from the assessment order. However, the assessee has taken a plea before the ld.CIT(A) that the impugned land is an agricultural land, the facts of which has not been examined. Therefore, he pleaded that the appeal be upheld on the basis of orders of the lower authorities.

We heard the rival submissions and gone through the relevant material. Since the nature of the land sold is not examined, we deem it fit to remit this issue back to the Assessing Officer for a fresh examination. The assessee shall lay all materials in support of his contention before the Assessing Officer and comply with the requirements of the Assessing Officer in accordance with law. The Assessing Officer is also free to conduct appropriate enquiry as deemed fit, however, he shall furnish due opportunity to the assessee on the materials etc., to be used against the assessee and on due consideration of the assessee’s clarification / explanation shall pass the order in accordance with law.

In the result, the assessee’s appeal is treated as partly allowed for statistical purposes.