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2021 (1) TMI 675 - AT - Income TaxAddition on account of short term capital gains - CIT-A Applying provisions of Section 50C and considering stamp duty value to be actual consideration - assessee argued that the authorities below have failed to appreciate the fact that the assessee was merely an agent who earned commission and the revenue authorities have failed to appreciate the fact that the assessee had not transferred the land as the owner of the property. He has merely transferred the land as the Power of Attorney holder - HELD THAT - From the registered sale deed furnished by the assessee, it is noticed that the sale deed was executed by one Shri Tejpal Patidar who had entered into agreement to sale with the original land owners namely Shri Shankar Sadhwani S/o Shri Dharmprakash Sadhwani and Shri Bharat Keswani s/o S.K. Keswani. Thus find no mention in this fact in the assessment order, it is also not clear whether the sale deed was placed before the assessing officer. Under these facts, therefore, set aside the impugned order and restore the assessment to the file of the assessing officer for making de novo assessment.
Issues Involved:
1. Validity of assessment u/s. 148 2. Addition of short term capital gains u/s. 50C 3. Application of provisions of Section 50C 4. Justification of not making reference to DVO Validity of Assessment u/s. 148: The appeal was filed against the orders of ld. CIT(Appeals)-3, Bhopal for the assessment year 2007-08. The assessing officer reopened the case under section 147 and framed the assessment under section 143(3). The dispute arose regarding the transfer of land and the capital gains derived from it. The assessing officer considered the land as a capital asset and assessed short term capital gains. The argument of the assessee that the land was transferred as a Power of Attorney holder was not accepted. The assessing officer relied on the stamp valuation for determining the value of the land. Addition of Short Term Capital Gains u/s. 50C: The main issue in the appeal was the addition of short term capital gains amounting to &8377; 12,08,600. The ld. CIT(A) confirmed this addition, rejecting the contentions raised by the assessee. The Tribunal considered the details of the land deals and the sequence of transactions involving different parties. The assessee claimed to have earned only a commission of &8377; 11,400 and argued that no additional income should be attributed. However, the Tribunal observed discrepancies in the assessment order and set it aside for a fresh assessment by the assessing officer. Application of Provisions of Section 50C: The Tribunal noted the application of Section 50C and the consideration of stamp duty value as the actual consideration. The ld. CIT(A) upheld the assessment based on these provisions. The Tribunal, however, found discrepancies in the assessment process and ordered a de novo assessment by the assessing officer. The Tribunal emphasized the need for a proper evaluation of the facts and documents presented by the assessee. Justification of Not Making Reference to DVO: One of the grounds raised was the failure of the ld. CIT(A) to make a reference to the District Valuation Officer (DVO) for valuation purposes. The Tribunal did not find clarity on whether the sale deed was presented before the assessing officer. Due to these uncertainties, the Tribunal set aside the previous order and directed a fresh assessment to be conducted by the assessing officer. In conclusion, the appeal by the assessee was allowed for statistical purposes only, and the assessment was remanded to the assessing officer for a fresh evaluation based on the presented facts and documents.
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