SRI JANMEJOY LENKA,BHUBANESWAR vs. ITO, WARD-3(3), BHUBANESWAR

आयकर अपीऱीय अधिकरण, “एस.एम.सी” न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER आयकर अपीऱ सं./ITA No.486/CTK/2017 (नििाारण वषा / Assessment Year :2014-2015) Sri Janmejoy Lenka, Vs. The ITO, Ward-3(3), Plot No.41C, Jayadurga Nagar, Bhubaneswar Bhubaneswar-751006 स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No. : AAJPL 0732 B (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. निर्ााररती की ओर से /Assessee by : None राजस्व की ओर से /Revenue by : Shri D.K.Pradhan, DR सुनवाई की तारीख / Date of Hearing : 28/12/2017 घोषणा की तारीख/Date of Pronouncement 29/12/2017 आदेश / O R D E R This is an appeal filed by the assessee against the order of the CIT(A)-2, Bhubaneswar, dated 21.8.2017. 2. The sole issue involved in this appeal is that the CIT(A) erred in confirming the addition of Rs.29,59,473/- on the basis of values given by Sub-Registrar-IV, Ghaziabad, UP to calculate their stamp duty and the learned ITO not referred to any authority for proper valuation of the property and made addition under Long Term Capital Gain. 3. Brief facts of the case are that the AO observed that the assessee has shown sale consideration of Rs.70 lakhs for sale of the property and the assessee claimed deduction u/s.48 of the Act of Rs.65,61,071/- as cost of improvement. The AO observed that information u/s.133(6) of the Act was called from the Sub-Registrar-IV, Ghaziabad, UP under whose jurisdiction the property was sold and he vide letter dated 08.11.2016 has stated that the fair market value of the property under consideration was

2 ITA No.486/CTK/2017 Rs.96,10,000/- as on the date of transfer and stamp duty of Rs.6,73,000/- was paid during registration of the said property. Therefore, the AO treated Rs.96,10,000/- as the full value of consideration u/s.50-C of the Act, 1961 as against the claim of the assessee Rs.70,00,000/- and thereby made addition of Rs.32,06,461/- to the income of the assessee. 4. The assessee before the AO as well as the CIT(A) contended that the fair market value of the property was Rs.70,00,000/- and the stamp duty value was much higher than the fair market value of the property and, therefore, the matter should be referred to the DVO for his valuation. The AO as well as the CIT(A) did not accept this plea of the assessee and the addition made by the AO was confirmed by the CIT(A) in appeal. 5. The AR of the assessee has filed adjournment petition and the bench was of the view that the appeal can be disposed off without the assistance of AR of the assessee after considering the materials available on record and the submissions of the DR. Therefore, the bench proceeded to hear and dispose off the appeal of the assessee ex-parte qua the assessee after rejecting the adjournment petition. 6. The DR relied on the orders of the lower authorities. However, on a query of the bench as to why the matter was not referred to the DVO when the assessee claimed that the fair market value of the property in question was determined by the Sub-Registrar-IV, Ghaziabad, UP at Rs.96,00,000/- was much higher than the fair market value of the property, the DR could not submit any reply.

3 ITA No.486/CTK/2017 7. In the above background of the case, I am of the considered view that in the interest of rendering substantial justice, the matter should be restored back to the file of AO to adjudicate the issue of determination of Long Term Capital Gain on the property afresh after obtaining the valuation report from the DVO and allowing reasonable and proper opportunity of hearing to the assessee. I, therefore, set aside the orders of lower authorities and remand the matter back to the file of AO to readudicate the issue afresh in the light of the discussion made hereinabove after allowing reasonable and proper opportunity of hearing to the assessee. Thus, the appeal of the assessee is allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 29/12/2017. Sd/- (N. S. SAINI) ऱेखा सदस्य / ACCOUNTANT MEMBER कटक Cuttack; ददनांक Dated 29/12/2017 प्र.कु.मम/PKM, Senior Private Secretary आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : 1. Appellant- Sri Janmejoy Lenka, Plot No.41C, Jayadurga Nagar, Bhubaneswar-751006 2. प्रत्यथी / The Respondent- ITO, Ward-3(3), Bhubaneswar 3. आयकर आयुक्त(अपील) / The CIT(A), आयकर आयुक्त / CIT 4. निभागीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, कटक / DR, ITAT, Cuttack 5. आदेशािुसार/ BY ORDER, गार्ड फाईऱ / Guard file. 6. सत्यापपत प्रतत //True Copy// (Senior Private Secretary) आयकर अपीऱीय अधिकरण, कटक / ITAT, Cuttack