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TMI Blog2015 (6) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... ement at 4,37,20,550/- with the value assessed for the payment of stamp duty, i.e. at 4,37,20,550/- as indicated in Index-II and not the amount of 4,80,00,000/-, on which stamp duty has been paid. Considered in this light, we therefore find that the addition of 42,79,000/- is not justified on the strength of invoking of section 50C of the Act. We accordingly set-aside the order of the CIT(A) and the Assessing Officer is directed to the delete the impugned addition of 42,79,000/-. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of enhanced long term capital gain. 4. The basis of such addition is the mention of ₹ 4,80,00,000/- as the consideration in Index No.II annexed to the single joint venture agreement dated 18.12.2003 while registering the same on 19.12.2003. In the Index No.II, the consideration has been stated to be ₹ 4,80,00,000/- whereas the value assessed by the registering authority for the purpose of stamp valuation of property is stated at ₹ 4,37,20,550/-. On this basis, the Revenue contends that the consideration for the purpose of computing long term capital gain is to be reckoned at ₹ 4,80,00,000/- whereas, as per the assessee it has to correspond to the market value of the property, i.e. ₹ 4,37,20,550/- or the round figure ₹ 4,37,21,000/- as mentioned in the addendum to the single joint venture agreement dated 10.05.2004. 5. Before us, the Ld. Counsel for the assessee submitted that the CIT(A) has wrongly upheld the action of the Assessing Officer in adopting the consideration at ₹ 4,80,00,000/- and that there was no justification for having invoked section 50C of the Act in the present case so as to compute the capital gain with reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower authorities by pointing out that the stamp duty has been paid after considering the value of the property at ₹ 4,80,00,000/- and, therefore, the same is liable to be treated as value of sale consideration adopted by the stamp valuation authority and accordingly, section 50C of the Act has been rightly invoked. 7. We have carefully considered the rival submissions. The controversy in this appeal is primarily driven by invoking of section 50C of the Act which permits an Assessing Officer to disregard the consideration actually received or accruing as a result of transfer by an assessee in preference to the value adopted or assessed or assessable by any authority of a State Government for the purposes of stamp duty in respect of such transfer. Section 50C of the Act provides that where the consideration received or accruing as a result of transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, then the value so adopted or assessed or assessable shall, for the purposes of section 48 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to the value of ₹ 4,80,00,000/- as mentioned in the Index-II and, therefore the amount of ₹ 4,80,00,000/- is deemed to be the full value of consideration for the purpose of section 50C of the Act. On this aspect, we find that section 50C of the Act talks of the value adopted or assessed or assessable by any state Government authority for the purpose of payment of stamp duty in respect of such transfer. In this light, though stamp duty has been paid with respect to the value of ₹ 4,80,00,000/-, so however, it is also evident in terms of the Index-II that the value assessed or assessable by the authority for the payment of stamp duty continues to be ₹ 4,37,20,550/-. The assessee has explained the reasons as to under what circumstances the stamp duty was paid with respect to value of ₹ 4,80,00,000/- and ostensibly consideration was not quantified in the joint venture agreement dated 18.12.2013 executed between the two parties. Therefore, for the purposes of ascertaining the value adopted or assessed or assessable by any authority of a State Government for the purposes of payment of stamp duty as referred to in section 50C of the Act, it is only th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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