2015 (11) TMI 1445 - AT - Income Tax

Computation of long term capital gains - adoption of the fair market value as on 1st April, 1981 - rectification of mistake - Held that - The common issue was the computation of long term capital gains and for that purpose, adoption of the fair market value as on 1st April, 1981 was necessary. It is noticed that after considering rival contentions, the Tribunal directed the A.O. to refer the valuation to the DVO and to consider the report of the DVO on the cost of acquisition as on 01.04.1981 for computation of capital gains. We find that the very same issue has been raised by the assessee ... though in the Revenue s appeal 1428/Hyd/2012 and this Tribunal after considering the decisions cited by the assessee before us now i.e., the decision of jurisdictional High Court in the case of CIT vs. Ashven Datla in ITTA 2012 (11) TMI 1098 - ANDHRA PRADESH HIGH COURT has held that there was no mistake apparent from record which needs rectification. As can be seen the ITAT has not directed A.O. to adopt value of DVO as apprehended. Various options were given to A.O. to determine the fair market value including the DVO value. Therefore also, we are of the opinion that there is no mistake which require rectification.

Summary

Issues Involved:
1. Maintainability of Miscellaneous Applications (M.As).
2. Directions by the Tribunal regarding the reference to the District Valuation Officer (DVO) for determining the cost of acquisition as on 01.04.1981.
3. Alleged mistake apparent from the record in the Tribunal's order.
4. Binding nature of decisions by Coordinate Benches and jurisdictional High Courts.

Detailed Analysis:

1. Maintainability of Miscellaneous Applications (M.As):
The assessee filed two M.As against the common order of the Tribunal dated 31.07.2013 in ITA.No.1428/Hyd/2012 and ITA.No.1269/Hyd/2012. The Tribunal noted that the assessee had previously filed M.A.No.223/Hyd/2013 in ITA.No.1428/Hyd/2012, which was dismissed on 03.02.2014. The Tribunal held that the second M.A. against the same order is not maintainable and dismissed it accordingly.

2. Directions by the Tribunal regarding the reference to the DVO:
The Tribunal in its order dated 31.07.2013 directed the Assessing Officer (A.O.) to refer the valuation to the DVO and consider the report of the DVO on the cost of acquisition as on 01.04.1981. The assessee contended that this direction was against statutory provisions and the jurisdictional High Court's decision in CIT vs. Ashwin Datla, which upheld the valuation by a Registered Valuer recognized by the Income Tax Department.

3. Alleged mistake apparent from the record in the Tribunal's order:
The assessee argued that there was a mistake apparent from the record in the Tribunal's order, as it did not follow the decision of the jurisdictional High Court in CIT vs. Ashwin Datla and the Coordinate Bench decision in ACIT vs. Sri Narsimha Rao (HUF). The Tribunal, however, found no apparent mistake warranting rectification, emphasizing that the Tribunal's decision considered all relevant contentions and case laws.

4. Binding nature of decisions by Coordinate Benches and jurisdictional High Courts:
The assessee highlighted the binding nature of decisions by Coordinate Benches and jurisdictional High Courts, citing the Supreme Court's decision in Honda Siel Power Products vs. CIT and the Kerala High Court's ruling in CIT v Travancore Titanium Products Ltd. The Tribunal acknowledged these principles but maintained that its previous order did not contain any apparent mistake and thus did not require rectification.

Conclusion:
The Tribunal dismissed both M.As filed by the assessee, reiterating that there was no mistake apparent from the record in its previous order. The Tribunal emphasized judicial discipline and the binding nature of Coordinate Bench decisions but found that its directions to the A.O. to consider the DVO's report, among other factors, were appropriate and did not warrant rectification. The Tribunal's order was pronounced in the open Court on 23.11.2015.