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Facts
The assessee appealed an order passed under Section 154 of the Income Tax Act for AY 2010-11, where the Assessing Officer had recalculated long-term capital gain based on the property's circle rate. The assessee claimed ownership of only an 1/8th share, not 50% as determined, and disputed the applicability of Section 50C, but failed to provide documentary evidence for this claim despite multiple opportunities and repeated non-appearance for hearings.
Held
The Tribunal observed the assessee's consistent non-appearance for hearings and the absence of any documentary evidence to substantiate the claim of 1/8th ownership. Finding no additional material to contradict the findings of the CIT(A), the Tribunal upheld the lower appellate authority's decision.
Key Issues
Whether the re-computation of long-term capital gain under Section 154 by adopting circle rates was correct, and whether the assessee's claim of a 1/8th share in the property (impacting Section 50C applicability) could be accepted without supporting documentary evidence.
Sections Cited
154, 143(3), 50C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHES : E : NEW DELHI
Before: SHRI G.S. PANNU, HON’BLE & SHRI ANUBHAV SHARMA
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE VICE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER Assessment Year: 2010-11 Praveen Gupta, Vs ACIT, Flat No. D-101, 1st Floor, Circle-2, Tower No. D, Caitriona Residential Meerut. Apartment Complex, Ambience Island, NH-8, Gurgaon 122001 PAN: ACJPG4777H (Appellant) (Respondent) Assessee by : None Revenue by : Shri Anshul, Sr. DR Date of Hearing : 08.05.2024 Date of Pronouncement : 08.05.2024 ORDER PER ANUBHAV SHARMA, JM:
The assessee is in appeal against the impugned order dated 30.03.2016 u/s. 154 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) passed by Commissioner of Income Tax (Appeals or hereinafter referred as the Ld. First Appellate Authority) in Appeal against an assessment order dated 02.07.2014 passed by Assistant Commissioner of Income Tax, Circle-2, Meerut (hereinafter referred as the Assessing Officer or in short AO) passed u/s. 154 of the Act, for the Assessment Year 2010-11.
As the case was called for hearing none has appeared for the assessee/applicant. Record shows earlier the appeal was decided ex-parte on 31.01.2019 and subsequently in MA No. 292/Del/2019 by order dated 13.02.2023, the ex-parte order was recalled at the instance of the assessee and at the time of allowing the application the co-ordinate bench had fixed the appeal for hearing on 19.04.2023 which was announced in the court on the conclusion of the hearing. The order in miscellaneous application mentions no notice will be given in this regard. The record shows thereafter on 19.04.2023, none appeared for the assessee, subsequently notices have been issued to the assessee but have been received back un-served, however, on 25.01.2024 and 15.02.2024 Shri Sunil Kumar, CA had put in appearance for the assessee. No more opportunities is justified arguments of ld. DR were heard who has supported the order of ld. Tax Authorities below.
On appreciating the material before us, it comes up that assessment of the assessee was completed u/s. 143(3) of the Act, and subsequently invoking powers u/s. 154 of the Act, by order dated 02.07.2014, the Assessing Officer had recalculated the capital gain by following observations:- Subsequently, it was revealed from the assessment records that the assessee had sold a plot measuring 1362.5 sq. yard i.e. 1139.22 sq. mt. situated at Hill Street, Meerut (Bungalow No.80 Survey No.326). The circle rate of the area of the said property was at Rs.15,000/- per sq. mt. as per the Sub Registrar IV, Meerut. Thus, the valuation of the property as per circle rate was at Rs.1,70,88,300/- (1139.22 x 15,000). Valuation of the assessee's property (half share) is Rs.82,66,705/- (85,44,150 less 1/16 of index cost of acquisition Rs.2,77,445) but while computing the long term capital gain it was worked 2 out as Rs.4,46,985/-. This resulted in short account of capital gain to the tune of Rs.78,19,720/- (82,66,705 - 4,46,985) and the same was liable to be added to the total income of the assessee.
The assessee had challenged the same before the Ld. First Appellate Authority where the appeal was dismissed.
As we go through the impugned order of ld. First Appellate Authority, it comes up that claim of assessee was that he was owner of 1/8 share of the property in question and not of 50% as has been computed in the order u/s.
However, this being a factual aspect was not established by any documentary evidence, in the form of a genuine or original agreement to sell to claim that provisions of section 50C of the Act are not applicable. As there is no other material before us, the findings of ld. CIT(A) deserve no interference.
In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 08.05.2024.