2017 (8) TMI 850 - AT - Income Tax

Capital Gains - Determination of total sales consideration of the lease rights allotted in the land - applicability of provisions of the Section 50C - issue of cost of acquisition (COA) of residential plots - Held that - AO has completed the assessment u/s. 144/147 of the Act. Further find force in the contention of the Ld. Counsel of the assessee that Ld. CIT(A) has not fully adjudicated the grounds of appeal and also not considered the Written Submissions filed before him and decided the issue against the assessee without considering the same. I further find that assessee has filed the small Paper Book containing pages 1 to 101 in which he filed the copy of written submissions before the ITAT, copy of documents filed with CIT(A) i.e. written submissions (including supporting documents/ annexures); copy of assessment order in case of Sh. Rishipal; documents in relation to share holding (copy of shareholding pattern, joint and individual bank statement). Ld. CIT(A) while considering the appeal of the assessee has not considered the documentary evidences filed by the assessee before him and also not commented upon the written submissions in his impugned order. In view of the above, it is of the considered opinion, that the aforesaid documents needs to be examined at the level of the AO, therefore, in the interest of justice, set aside the issue in dispute to the file of the AO to consider the same, afresh under the law, after giving adequate opportunity of being heard to the assessee and after appreciating the documents filed in the shape of Paper Book, as aforesaid. Assessee is also directed to fully cooperate with the AO and did not take any unnecessary adjournment.

Issues Involved:
Consolidation of appeals against separate orders of the Ld. CIT(A) for the asstt. year 2008-09 due to identical issues. Adjudication on grounds raised by the Assessee regarding the order under section 250 of the Income Tax Act, 1961. Determination of total sales consideration of lease rights allotted in the land. Consideration of main submissions made by the Assessee regarding the issue of cost of acquisition (COA) of residential plots. Evaluation of decisions of various courts in favor of the Assessee. Calculation of COA of leasehold rights in plots sold by the Assessee. Assessment of COA of residential plots based on the price of agricultural land. Adjudication on the share of the Assessee in residential plots sold. Examination of documents and written submissions not fully considered by the Ld. CIT(A).

Detailed Analysis:

1. Consolidation of Appeals: The ITAT Delhi consolidated the appeals filed by different assesses against separate orders of the Ld. CIT(A) for the asstt. year 2008-09 due to identical and common issues involved, ensuring convenience in the adjudication process.

2. Adjudication on Grounds Raised: The Assessee challenged the order under section 250 of the Income Tax Act, 1961, arguing that it was unjust and should be quashed. The ITAT Delhi noted that the Ld. CIT(A) did not fully adjudicate the grounds raised by the Assessee, leading to a decision against the Assessee without considering written submissions.

3. Determination of Sales Consideration: The dispute regarding the determination of the total sales consideration of lease rights allotted in the land was raised. The Assessee contended that the calculation should not be based on the provisions of the LT. Act, 1961, but as per the provisions of the Income Tax Act, 1961.

4. Evaluation of Main Submissions: The Assessee argued that the Ld. CIT(A) did not consider the main submissions regarding the issue of cost of acquisition (COA) of residential plots, leading to an incorrect decision. The ITAT Delhi found merit in this contention and directed a fresh examination by the AO.

5. Consideration of Court Decisions: The Assessee highlighted the failure to consider decisions of various courts in their favor during the appeal process. The ITAT Delhi noted this argument and emphasized the importance of giving due consideration to relevant legal precedents.

6. Calculation of COA of Leasehold Rights: The dispute over the calculation of the cost of acquisition of leasehold rights in plots sold by the Assessee was raised. The ITAT Delhi reviewed the arguments and directed a reevaluation by the AO based on the fair market value at the time of allotment.

7. Assessment of COA of Residential Plots: The ITAT Delhi examined the method used by the Ld. CIT(A) to determine the COA of residential plots, emphasizing the need for a more accurate calculation based on relevant factors rather than estimated values.

8. Adjudication on Share of Assessee: The issue of the share of the Assessee in residential plots sold was raised. The ITAT Delhi directed a proper adjudication on this matter in accordance with the provisions of the law.

9. Examination of Documents and Submissions: The ITAT Delhi acknowledged the documents and written submissions not fully considered by the Ld. CIT(A) and set aside the issues to the file of the AO for a fresh examination, ensuring adequate opportunity for the Assessee to present their case.

Conclusion:
The ITAT Delhi allowed all 03 appeals of the assesses for statistical purposes, emphasizing the importance of a thorough examination of all relevant documents and submissions in the adjudication process.

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