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2023 (8) TMI 1282 - AT - Income TaxAddition u/s 50C - difference between the value of property as per Stamp Valuation Authority and as per Government approved valuer - HELD THAT - We find that the difference between the value as per Stamp Valuation Authority and the value as per the Government approved valuer is less than 10% which is within the leverage provided u/s 50C. The third proviso to Section 50C of the Act provides that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and ten per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of Section 48, be deemed to be the full value of the consideration. The case of the assessee finds support from the decision of Sandeep Kumar Poddar Vs. ITO 2023 (3) TMI 666 - ITAT KOLKATA wherein a similar issue has been decided by the assessee. We, therefore, set aside the order of Ld. CIT(A) and direct Ld. AO to delete the addition u/s 50C - Decided in favour of assessee.
Issues:
The only issue raised in the appeal is against the ex-parte order passed by Ld. CIT(A) affirming the addition made by Ld. AO on account of difference between the value of property as per Stamp Valuation Authority and as per Government approved valuer. Summary: The appeal was filed by the assessee against the order of Ld. CIT(A) for the Assessment Year 2012-13, challenging the addition made by Ld. AO on the valuation of a property. The assessee had 1/6th ownership in a property and the market value was assessed at Rs. 5,89,97,915, whereas the consideration received was Rs. 50 lakh. The Ld. AO added Rs. 5,52,757 as the difference between the market value and the value as per the Government approved valuer under section 50C of the Act. After considering the submissions and evidence, it was found that the difference between the values was less than 10%, which is within the permissible limit under section 50C of the Act. Referring to a similar case, the Tribunal decided in favor of the assessee, directing the deletion of the addition made by Ld. AO. The decision was based on the provision that if the value assessed by the stamp valuation authority does not exceed 110% of the consideration received, the consideration shall be deemed to be the full value for the purpose of Section 48. Therefore, the Tribunal allowed the appeal filed by the assessee, setting aside the order of Ld. CIT(A) and directing Ld. AO to delete the addition of Rs. 5,52,757 under section 50C of the Act.
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