SHIV SINGH,AGRA vs. ITO WARD-6(2), JHANSI
Facts
The assessee's appeal arises from the CIT(A)'s order concerning assessment years 2007-08, involving proceedings under section 143(3) r.w.s. 147 of the Income-tax Act. The appeal challenges the addition made by invoking section 50C, where the actual sale price was significantly less than the stamp duty value.
Held
The Tribunal rejected the assessee's additional legal ground regarding the validity of reopening without Section 151 approval. Regarding the substantive issue, the Tribunal considered that the DVO himself reduced the fair market value of the capital asset, and thus granted partial relief.
Key Issues
1. Validity of reopening of assessment without Section 151 approval. 2. Challenge to the addition made under Section 50C based on sale consideration being less than stamp duty value.
Sections Cited
143(3), 147, 151, 50C, 254(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA No. 157/Agr/2018 Assessment Year: 2007-08
Shiv Singh, Village Sikandarpur, Vs. Income-tax Officer, Poiaghat, Dayalbagh, Agra. Ward 6(2), Jhansi Camp office at Agra. PAN : FSAPS3491E (Appellant) (Respondent) Assessee by Sh. Rajesh Malhotra, C.A. Department by Sh. Shailendra Shrivastava, Sr. DR
Date of hearing 13.02.2025 Date of pronouncement 13.02.2025
ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for assessment years 2007-08, arises against the Commissioner of Income Tax(Appeals)-I [in short the “CIT(A)], Agra’s order in Appeal No.40.CIT(A)-2/Agra/2015-16(OLD) dated 30.11.2017, involving proceedings under section 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties at length. Case file perused.
ITA No.38/Agr/2022
Learned counsel submits at the outset that the assessee has raised
additional legal ground in the instant appeal challenging validity of
reopening without providing him section 151 approval. We note that said
approval is nowhere found in the case records. The assessee’s instant
additional ground rejected in light of NTPC vs. CIT 229 ITR 383 (SC). We
reject the additional legal ground.
Next comes the sole substantive issue on merits. Learned counsel
challenges both the lower authorities’ action invoking section 50C
addition as actual sale prices of Rs.5,00,000/- was very well less than the
stamp price amounting to Rs.21,78,000/- and further reduced by the DVO
to the tune of Rs.16,88,000/-, respectively. All this resulted in impugned
long-term capital gain re-computation forming subject matter of
adjudication before us.
We have given our thoughtful consideration to the assessee’s and
Revenue’s respective submissions. It is suffice to say that the learned
DVO has himself reduced the fair market value of assessee’s capital
asset from stamp price of Rs.21,78,000/- to Rs.16,88,000/-. The
possibility of some distressing factors in the impugned valuation could not
altogether ruled out therefore. That being the case, the tribunal hereby 2 | P a g e
ITA No.38/Agr/2022
exercise its inherent jurisdiction u/s. 254(1) to grant relief of Rs.2,88,000/-
in the fair market value of capital asset assessed by DVO and his
valuation of Rs.16,88,000/- is reduced to Rs.14,00,000/- in very terms.
Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed in above terms. Order pronounced in the open court on13THFebruary, 2025.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 13THFebruary, 2025. *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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