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Kody Medical Electronics Ltd. Versus The Assistant Commissioner of Income Tax, Chennai

2016 (5) TMI 348 - ITAT CHENNAI

Adoption of land rate for the purpose of valuation u/s.50C - Held that:- To consider valuation cell letter dt. 10.03.2005 and letter of Registration Department, Sub-Registrar, Adayar dt 24.02.2011 referring guideline value adopted in respect of Vikram Sarabai Instronics Estate, Thirumanmiyur alongwith CD. The guideline value adopted by SRO for the period from 01.04.2003 to 31.07.2007 being ₹ 516/- per sq.ft and present assessment year falls within the above period and there is an increase .....

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n that assessee should be provided with one more opportunity based on the guideline value, valuation report and valuation under Wealth Tax Act and to consider the contents of CD as requested by the assessee in adjudicating the appeal. Therefore, we set aside the order of Commissioner of Income Tax (Appeals) and remit the entire disputed issue to the Commissioner of Income Tax (Appeals) to pass the order afresh based on the above findings and provide adequate opportunity of being heard to the ass .....

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d 250 of the Income Tax Act, 1961 (herein after referred to as the Act ). 2. The assessee has raised the following grounds:- 2. The Commissioner (Appeals) erred in fixing the value of the property (Land & Factory Building) at Dr.Vikram Sarabhai Instronics Estate, Thiruvanmiyur sold on 21.09.2005 as ₹ 1 ,21 ,75,1111- as against the actual sale consideration of ₹ 80,00,000/-. 3. The Commissioner (Appeals) erred in virtually approving the value of the property estimated by the Valua .....

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e judgment of the Allahabad High Court in Dr.lndra Swarup Bhatnagar [(2012) 349 ITR 210 (ALL)] and Ambattur Clothing Co. Ltd [(2010) 326 ITR 245 (Mad)] cited 1 relied on by the Commissioner (Appeals) have no relevance to the fact situation in the present case and are distinguishable. 5. The Commissioner (Appeals) erred in not accepting the detailed objections raised to the land rate estimated by the Valuation Officer in a manner contrary to the sale instances as per the Sub-Registrar's offic .....

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Sq.ft only while the rate at which the appellant sold the land was much more being ₹ 879 per Sq.ft. 7. The appellant submits that in the course of the appeal proceedings the appellant· had requested the Valuation Officer to forward the CD for the period 01.01.2003 to 31.12.2006 furnished by the Sub-Registrar, Adayar, Chennai to the Valuation Officer vide Sub-Registrar's letter dated 24.02.2011 to the Commissioner (Appeals); the CD was not forwarded by the Valuation Officer to th .....

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trading of medical equipments and filed Return of income on 30.11.2006 admitting total income of Rs. .31.89,950/- and return was processed u/s.143(1) of the Act and the case was selected for scrutiny and assessment was completed u/s.143(3) of the Act vide order dated 18.12.2008 accepting long term capital gains admitted by the assessee in the revised computation of income. The ld. Commissioner of Income Tax found the order passed u/s.143(3) of the Act is erroneous and prejudicial to the interest .....

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dered the facts and passed Revision order u/s.263 of the Act in C.No.218(46)/CIT-I/263/2010-11, dt. 16.03.2011 by set asiding the assessment u/sec.143(3) dt. 18.12.2008 and directed the Assessing Officer to refer for the valuation of capital asset and to make fresh assessment in accordance with provisions of Sec. 50C of the Act. The ld. Assessing Officer as per the directions of ld. Commissioner of Income Tax referred to the valuation officer for ascertaining the value. The valuation officer vid .....

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890/- being ₹ 1,254/- per sq.ft adjusted value in comparison with value ₹ 879/- sq.ft offered by the assessee. Aggrieved by the order, the assessee filed an appeal before the CIT(A). 4. In the appellate proceedings, the ld. Authorised Representative argued the grounds of appeal and filed written submissions. Further gave clarifications on the adoption of stamp duty value supported by elaborate submissions by letters dated 06.02.2014 and 17.03.2015 on disputed issue. The ld. CIT(A) co .....

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p Duty Authorities under RTI Act on 28-10-2013, eight years after the transaction took place, and the Authorities replied that the records asked for are not available as the application was filed beyond the retention period of the documents. No purpose is served by summoning the Sub-Registrar or other officials at this juncture, as requested by the appellant, since the documents on which the valuation of property was based are no longer available with the concerned authorities. 4.1.4. The facts .....

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sessee. The explanation offered by the assessee that, as seller, it did not have any locus standi in the proceedings and hence the assessee should not be made to suffer by enhancing the assessment was rejected by the Assessing Officer. In its judgement, the Hon'ble High Court of Madras observed as under: The explanation offered by the assessee before the assessing authority in respect of the deemed value of the two properties was that' while registering, the Sub-Registrar refused to rele .....

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transfer. 4.1.5. Therefore, the Assessing Officer has rightly brought the enhanced value of consideration to tax. Moreover, as observed by the Hon 'ble Allahabad High Court in the case of Commissioner of Income Tax Vs. Dr. Indra Swaroop Bhatnagar (2012) 349 ITR 0210 (All) the report of the DVO is binding on the Assessing Authorities once a reference is made u/s 50C of the Income Tax Act. This is a case where appellant requested for reference to the DVO in the course of proceeding u/ s.263 of .....

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and recalculate the income of the appellant. The appellant's plea on this ground is dismissed Aggrieved by the order, the assessee assailed an appeal before Tribunal. 5. Before us, the ld. AR of the assessee reiterated the submissions of assessment, appellate proceedings and valuation cell. The ld. CIT(A) erred in fixing the value of the property at Rs. .1,21,75,111/- as against original consideration of Rs. .80,00,000/-. The ld. CIT(A)relied on the estimation of the valuation officer as pe .....

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e data in the CD and confirmed the value adopted u/sec. 50C of the Act. The ld. Authorised Representative further submitted that the valuation rate adopted by the assessee being Rs. .879/- per sq.ft for the land, wereas ld. Assessing officer based on the valuation report adopted the land value Rs. .1,254/- per sq.ft and assessed the income. The ld. Commissioner of Income Tax has ignored the grounds and information of the registration department in letter dated 24.02.2011, were the guideline valu .....

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submissions, perused the material on record and judicial decision cited. The only issue in dispute being adoption of land rate for the purpose of valuation u/s.50C of the Act. The assessee has sold the property and offered long term capital gains of Rs. .41,52,340/- for 8535 sq.ft area situated in Vikram Sarabai Instronics Estate, Thirumanmiyur by adopting Rs. .879/- per sq.ft as sale consideration. But on perusal of the sale deed, the registration charges are paid Rs. .10,95,760/- being 9% of .....

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rected the Assessing Officer to adopt the value as per provisions of stamp valuations. In the appellate proceedings, the assessee has requested the ld. Commissioner of Income Tax (Appeals) to call for the CD of SRO for valuation. The ld. Authorised Representative drew our attention to the letter dated 08.02.2014 filed with the Commissioner of Income Tax (Appeals) requesting to call for the CD for adjudicating the appeal. Further to consider valuation cell letter dt. 10.03.2005 and letter of Regi .....

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