Case Number: ITA 1753/DEL/2020
Appellant: Best Auto Limited, New Delhi
Respondent: DCIT Circle-4(2), New Delhi
Assessment Year: 2013-14
Case Filed On: 2020-10-22
Order Type: Final Tribunal Order
Date of Order: 2023-10-05
Pronounced On: 2023-10-05
This case involves an appeal filed by Best Auto Limited against the DCIT Circle-4(2), New Delhi for the assessment year 2013-14. The appeal, registered as ITA 1753/DEL/2020, was filed on October 22, 2020, and concerns the calculation of long term capital gains and the rectification of an error under section 154 of the Income-tax Act, 1961.
The case was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal (ITAT) on October 5, 2023, with the order pronounced on the same day. The bench comprised Hon’ble President Shri G.S. Pannu and Judicial Member Shri Chandra Mohan Garg.
The primary grounds of appeal were:
The appellant, represented by Advocates Shri Satish Khosla and Shri Manish Malik, argued that the computation of long term capital gains was incorrect and that the authorities below ignored the claim of indexation placed by the assessee in the computation of income and other relevant documentary evidence. The appellant requested that the error in the assessment order be rectified under section 154 of the Act.
The tribunal noted that the authorities below were not correct in dismissing the application of the assessee seeking rectification in the assessment under section 154 of the Act. The tribunal agreed with the contention of the Senior DR that the verification and examination of the working of cost and indexation placed by the assessee in the computation is required to be done by the Assessing Officer.
The tribunal restored the issue to the file of the Assessing Officer for a limited purpose with a direction to allow the cost and indexation of the property sold after verification and examination of the working placed by the assessee in the computation of income, after allowing due opportunity of hearing to the assessee. Accordingly, the grounds of the assessee were allowed for statistical purposes.
The appellant also filed an application on July 13, 2023, seeking admission of additional grounds under Rule 11 of ITAT Rules 1963. The additional ground of appeal was that the CIT(A) erred in relying upon the report of the Departmental Valuation Cell, which was prepared in violation of the principles of natural justice.
The tribunal allowed the additional ground of appeal, noting that the assessee’s grievance regarding the Departmental Valuation Officer’s (DVO) report, prepared in a cryptic manner by only considering the circle rate and ignoring the factual position, required adjudication. The tribunal restored the matter to the file of the Assessing Officer for re-adjudication after calling for a fresh report from the DVO and allowing due opportunity of hearing to the assessee.
In conclusion, both appeals of the assessee were allowed for statistical purposes. The tribunal directed the Assessing Officer to verify and examine the working of the cost and indexation placed by the assessee and to re-adjudicate the issue regarding the DVO’s report after allowing due opportunity of hearing to the assessee.
The tribunal’s order was pronounced on October 5, 2023, by Hon’ble President Shri G.S. Pannu and Judicial Member Shri Chandra Mohan Garg, directing the rectification of the error in the computation of long term capital gain and the re-adjudication of the DVO’s report.
Members:
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Best Auto Limited vs. DCIT Circle-4(2), New Delhi – 2013-14 – Long Term Capital Gain Rectification
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