2022 (10) TMI 295 - AT - Income Tax

Capital gain computation - CIT (A) adapting the Jantri value as against taken by assessee in the return of income by applying section 50C - HELD THAT - Assessee at one point states that Sec. 50C is not applicable at the same time saying that it should be applied in consonance to Sec. 48 of the Act, which are contrary to assessee s stand. Therefore, the CIT(A) rightly observed that the assesse filed objection to the sub registrar, therefore provisions of Section 50C (2) of the Act is not applicable and held that the Assessing Officer rightly adopted the jantri rate. As regards to the claim of Section 54 of the Act, the CIT(A) has allowed the said claim. Hence, there is no need to interfere with the findings of the CIT(A). Assessee appeal dismissed.

Summary

Issues:
1. Discrepancy in Jantri value as per Section 50C of the Income Tax Act.
2. Validity of assessment proceedings under Section 147.
3. Application of Section 54 of the Act for LTCG on sale of property.

Analysis:
1. The case involved two assessees filing Cross Objection and Appeal against orders passed by the CIT(A) for different Assessment Years. The primary issue was the disagreement over the Jantri value of a property as per Section 50C of the Income Tax Act. The Assessing Officer made an addition to the Long Term Capital Gain (LTCG) on the sale of a property based on the Jantri rate, which was higher than the value declared by the assessees. The CIT(A) partly allowed the appeal but upheld the addition made by the Assessing Officer under Section 50C.

2. The assessees contended that the entire proceeding under Section 147 was invalid and should be voided. However, the tribunal did not find merit in this argument and proceeded with the assessment based on the issues raised regarding the Jantri value and LTCG.

3. Regarding the application of Section 54 of the Act for claiming exemption on LTCG, the CIT(A) allowed the claim made by the assessees. The tribunal observed discrepancies in the assessees' arguments, where they contested the applicability of Section 50C while also seeking its application in consonance with Section 48 of the Act. The tribunal upheld the CIT(A)'s decision on the application of Section 54 and the adoption of the Jantri rate, dismissing the Cross Objection and Appeal filed by the assessees.

In conclusion, the tribunal dismissed both the Cross Objection and the Appeal, affirming the decisions made by the CIT(A) regarding the Jantri value, LTCG, and the application of relevant sections of the Income Tax Act.