Supporting evidence cannot be regarded as additional evidence before CIT(A)

ACIT Vs Shri M.K. Ajat Shatru (ITAT Delhi)

It has been contended by the revenue that the Ld. CIT(A) erred in law in admitting additional evidence by way of certificate from the Divisional Commissioner without giving any opportunity to the AO. He submitted that it would be seen from the revenues record itself, i.e. from the paper book filed by the revenue in the case of Shri M.K. Ajatshatru Singh that the AO had obtained a report from the Tahsildar and is dated 28.03.2006, (Pg. 114 of DPB) wherein he had reported the value of land at Rs. 30 lacs per kanal in the year 1998, when the fair market value had substantially fallen on account of insurgencies and terrorist activities, which shows that the fair market value of land as adopted by registered valuer at Rs. 8.80 lacs per kanal as on 01.04.1981 was supported by the evidence on record. It is thus incorrect to suggest that the learned CIT(A) had admitted any additional evidence by way of certificate from the Divisional Commissioner without giving any opportunity to the AO, since in the opinion of the AO the fair market value had far exceeded the fair market value of the land as on 01.04.1981. He thus submitted that no additional evidence had been filed by the assessee. In fact, such an evidence is only supporting evidence as held by the Tribunal in the case of Suresh Kumar Gupta vs. ITO reported in 14 TTJ 470. In fact, on the contrary it would be seen that the AO had himself made an application before the appellate proceedings in the case of Shri M.K. Ajatshatru Singh (Pg. 33 – 35) wherein he had prayed for the admission of additional evidence, when he contended that the facts in the instant case are identical to the facts of Dr. Karan Singh and others.

Ld. Senior Counsel for the assessee submitted that this ground has been raised in the case of Shri. Ajatshatru Singh, Dr. Karan Singh and Late Smt. Yasho Raja Laxmi. He submitted that in so far as the case of Shri. Ajatshatru Singh is concerned, from the perusal of the order of the ld CIT(A) dated 18.03.2003, it would be seen that he has held that though the Divisional Commissioner in his certificate dated 17.01.2003 has estimated the value around 5-6 lakhs per kanal, however if the lower value is also adopted, then also there would be no capital gain. In fact from the concluding para of the order of the ld CIT(A), it would be seen that he has accepted the fair market value based on the report of valuer which was filed during the course of the assessment proceedings. Hence, the report of the Divisional Commissioner was merely in the nature of the supporting evidence and cannot be regarded as additional evidence.

FULL TEXT OF THE ORDER OF ITAT DELHI

ITA.No.263/ASR/2003 filed by the Revenue is directed against the order dated 18.03.2003 of the Ld. CIT(A), Jammu (HQ at Amritsar) relating to the A.Y. 1998­99. ITA.No.267/ASR/2007 filed by the Revenue is directed against the order dated 21.03.2007 of the Ld. CIT(A), Jammu (HQ at Amritsar) relating to the A.Y. 1998-99. The assessee filed C.O.No.43/ASR/2007 against the appeal filed by the Revenue. ITA.No.268/ASR/2007 filed by the Revenue is directed against the order dated 22.03.2007 of the Ld. CIT(A), Jammu (HQ at Amritsar) relating to the A.Y. 1998­99. The assessee filed C.O.No.44/ASR/2007 against the appeal filed by the Revenue. ITA.No.269/ASR/2007 filed by the Revenue is directed against the order dated 22.03.2007 of the Ld. CIT(A), Jammu (HQ at Amritsar) relating to the A.Y. 1998-99. The assessee filed C.O.No.45/ASR/2007 against the appeal filed by the Revenue. Since common issues are involved in all these appeals and cross objections, therefore, these were heard together and are being disposed of by this common order.

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