9911796707
TMI Blog2013 (3) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 Total Profit - Rs. 1,28,400 ii) The Assessing Officer during the course of assessment proceedings asked the assessee to furnish the complete details of the transactions. The assessee furnished the relevant details. Assessing Officer observed that as the sale consideration received by the assessee was less than the guideline value fixed by the State Government for stamp duty for registration of sale deeds. Assessing Officer asked as to why the business profit should not be worked out on the basis of value determined for the stamp duty purposes as in section 50C of the Act. iii) The assessee while stating that section 50C of the Act is not applicable to business profits submitted that the sales were made at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax (A) further observed that there is no material or evidence on record to show that the assessee has received excess sales consideration. The sales were to unrelated parties. He observed that the addition could not be sustained merely on the basis of conjectures and suspicious. He further noted that section 50C is also not applicable to business profits. Ld. Commissioner of Income Tax (A) further observed that the assessee's case was fully covered by the decision of the ITAT, Mumbai in the matter of Inderlok Hotels Private Limited vs. I.T.O. (2009) 122 TTJ 145. In this case in a similar matter, it was held that the value determined by the stamp duty authorities can be adopted only for computing capital gains but ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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