ITA Nos. 153 and 154/CTK/2012 (Assessment Year: 1998-99 to 1999-00). Case: Shyam Sundar Poddar (HUF), Sambalpur Vs ITO, Ward 2(1), Sambalpur [Alongwith ITA Nos. 155 and 160/CTK/2012 (A. Y. 1998-99), ITA Nos. 156, 157 and 158/CTK/2012 (A. Y. 1999-00)]. ITAT (Income Tax Appellate Tribunal)
| Case Number | ITA Nos. 153 and 154/CTK/2012 (Assessment Year: 1998-99 to 1999-00) |
| Judges | Shri K.K. Gupta, A.M. and Shri K.S.S. Prasad Rao, J.M. |
| Issue | Income Tax Act, 1961 - Sections 143(3), 154, 254 |
| Judgement Date | November 09, 2012 |
| Court | ITAT (Income Tax Appellate Tribunal) |
Order:
(Cuttack Bench)
1. Issue as well as facts being common, all these appeals filed by the respective assessees for the respective Assessment Years noted against each in the cause-title, were heard together and are being disposed of by this common order for the sake of convenience and brevity. These appeals have been preferred by the respective assessees against the orders of the learned CIT(A) confirming the orders of the Assessing Officer rejecting their petitions u/s. 154 of the Income-tax Act, 1961 for rectification of the assessment orders passed by the Assessing Officer u/s. 143(3)/254, wherein the Assessing Officer computed the capital gain on sales of cut and polished diamonds by taking the initial cost of raw & uncut diamonds as declared by the assessee for VDIS purpose by misinterpreting the decision of the ITAT, Special Bench, Cuttack at Kolkata in the case of Hiralal Lokchandani v. ITO in ITA No. 555/CTK/2002 dt. 17.11.2006, wherein, the ITAT, Special Bench has restored the matter to the file of the Assessing Officer with a direction to recompute the capital gain after considering the valuation report of rough diamonds as basis for determining fair market value of raw and uncut diamond as on 1.4.1981, which order required to have been followed by the Assessing Officer in the case of the present assessees, as directed by the Tribunal in their respective appeals. On appeal, the learned CIT(A) confirmed the action of the Assessing Officer and hence, the assessees have filed the present appeals before the Tribunal.
2. The learned Counsel of the assessee submitted that the Assessing Officer while passing the impugned assessment orders ought to have followed the direction of the Tribunal to decide the issue in the light of the decision of the Special Bench in the case of Hiralal Lokchandani v. ITO (supra). He submitted that the specific direction given by the ITAT, Special Bench in the said case, is as follows:
21. In view of above factual/legal position in our opinion, it would meet the ends of justice if the order of the lower authorities on this point is set aside and matter is restored back to the file of A.O. The assessee is directed to produce the valuation report of raw and uncut diamond before the A.O. Thereafter the A.O. will re-compute the capital gain after considering such valuation report as basis for determining fair market value of raw and uncut diamond as on 1.4.1981. The A.O. will allow adequate opportunity to the assessee while giving...
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