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TMI Blog2021 (5) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... value. The assessing officer has simply borrowed the finding of CIT(A)-IV, Surat, without seeing its relevance or reference and applied the fair market value on the assessee s land. No addition under section 50C can be made in absence of any evidence. In our view the ld. Commissioner (Appeals) has passed a reasoned and detailed order after considering all the facts, which we affirm. - Decided against revenue. - I.T.A No.1678/Ahd/2017, CO. No.01/SRT/2021 in ITA No.1678/AHD/2017 - - - Dated:- 19-4-2021 - Shri Pawan Singh, Judicial Member And Dr Arjun Lal Saini, Accountant Member For the Assessee : ShriTinish Mody CA For the Revenue : Smt. Usha Shorte Sr-DR ORDER PER PAWAN SINGH, JUDICAL MEMEBR: 1. This appeal by revenue and Cross Objection therein by assessee are directed against the order of Commissioner of Income-tax (Appeals)-2, hereinafter referred as ld. Commissioner (Appeals), Surat, dated 06.04.2017 for assessment year (AY) 2008-09. The revenue has raised ground following grounds of appeal; (1) Whether, on the facts and circumstances of the case and in law, ld CIT(A) was justified in deleting the additions made u/s 50C amounting to ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 50C at the rate of ₹ 5000/- per square meter. The rate of land was adopted on the basis of order of CIT(A)-IV, in Appeal No. CAS-IV/100-106/2008-09 dated 12th October 2009 in respect of land at Survey No. 227,Bhestan, Surat for AY 2006-07 in case of Shri Kaushik Sureshbhai Reshamwala. On the basis of aforesaid rate adopted by CIT(A)-IV, the assessing officer worked out short-term capital gain (STCG) of ₹ 1.61 Crore. On the basis of reasons recorded the assessing officer issued notice under section 148 dated 23.01.2015 on the assessee. 4. On receipt of the notice under section 148, the assessee filed its objections vide objection dated 30th November 2015, objecting to the reopening. In the objections the assessee stated that the said property is held by assessee jointly along with other co-owners, having share of 21.75%. During the regular course of assessment, the assessee furnished all the details with regard to purchase and the expenses incurred for converting the land into non-agriculture (NA) purpose and the expenses incurred including development expenses and the fees of Surat Municipal Corporation (SMC). The assessee claimed that all the expenses were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to Survey No. 227, Bhestan Surat, wherein he had estimated the rate of land @ ₹ 5000/- per square meter. On perusal of that said appellate order the learned CIT(A) IV, Surat in CAS-IV/100-106/2008-09 in Kaushik Sureshbhai Reshamwala, he find that in the said case a survey was conducted under section 133A on various entities regarding cash payment and cheque payment pertaining to the sale of land and that on the basis of such material, the learned CIT(A)- IV, Surat, had adopting the fair market value @ ₹ 5000/- per square meter. However, the assessing officer (in this case) has not given any finding nor conducted any inquiries that the land sold by assessee can be equated on the same rates. No physical inspection has been done; no finding on location of the land, size of the plot has been given. If this land is adjoining to the assessee s land, which could be one of the bases for comparing the rates, has also not been carried out by the assessing officer. The composition of two pieces of land being located in the same area which may be spreading in several kilometer is an absolutely absurd and fallacies comparison. It was further held that by no stretch of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i (207) 292 ITR 624 (Mad), decision of Ahmedabad Bench in Chetanbhai Prahaldbhai Gami Vs. ITO (ITA No. 2082/Ahd/2013) dated 19.07.2019 and CBDT Circular No.014(XL-35) dated 11.04.1955 and decision of this Bench in case of late Shri Mohanlal Ambelal Desai through L/h Alka Mohanlal Desai ITA No. 1570/AHD/2015 dated 15.12.2020. 9. On the other hand the ld. Sr DR for the revenue supported the order of the assessing officer. The ld DR for the revenue submits that the case laws relied by the ld AR for the assessee are based on different facts. 10. We have considered the rival submissions of the parties and have seen the orders of the lower authorities. The assessing officer reopened the case on the basis of AIR information as well as on the basis of order of ld. CIT(A)- IV Surat(supra), wherein he estimated the rate of land in Survey No. 227, Bhestan Surat, @ ₹ 5000/- per square meter. Though the assessee objected about the applicability of similar rate in case of assessee. The assessing officer after rejecting the objection of the assessee applied the similar rate in case of assessee and estimated the value of sale consideration in respect of share of the assessee and worked ..... X X X X Extracts X X X X X X X X Extracts X X X X
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