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2013 (3) TMI 465 - ITAT DELHIDifference in sale price of plots as undisclosed profit - Assessee has returned business income from sale of plots & the sale consideration received by the assessee was less than the guidelines value fixed by the State Govt. for stamp duty for registration of sale deeds - CIT(A) deleted the addition - Held that:- Finding ourselves in agreement with the CIT (A) that section 50C is not applicable to business profits. AO has not found any mistake in the books of accounts submitted by the assessee. Assessee has further submitted that a number of comparative sales instances and the assessee's returned rate is in the same range. Assessee has also submitted valuation report by the registered valuer. As AO has not brought on record any instances of comparative sales whereby the sale consideration received was more than that reflected by the assessee. In this regard, assessee's counsel reliance upon the Commissioner of Income Tax I Versus M/s. Thiruvengadam Investments Pvt, Ltd [2012 (5) TMI 145 - ALLAHABAD HIGH COURT] is also germane wherein held that when the property was treated as business asset and not capital asset there was no question of invoking section 50C. Also see C.I.T. vs. Kan Construction & Colonizers P Ltd. (2012 (5) TMI 145 - ALLAHABAD HIGH COURT ) held that section 50C would have no application when it was a case of transfer of plot which was stock in trade and the income from such transaction was treated as business income. No infirmity in the order of the CIT(A) - in favour of assessee.
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