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TMI Blog2011 (3) TMI 1677X X X X Extracts X X X X X X X X Extracts X X X X ..... rming the order u/s.143(3) of the Act passed by the ITO(OSD)-I, making addition to the extent of ₹ 16,34,700/- on account of alleged unexplained investment u/s.69 of the Act and hence liable to be quashed. 2. The ld.CIT(A) has failed to observe that the addition made by the AO is solely based on the valuation adopted by the stamp duty valuation authority and hence, the addition derived by the AO for the difference between the consideration paid for the purchase of the immovable property being open plot of land and value of the said property for purpose of stamp duty, without establishing that the property was under valued in the document of purchase and not recorded in the books of accounts, and hence, the addition made u/s.69 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment (hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provisions of sub-section (1), where (a) the assessee claims before any Assessing Officer that the value adopted or assessed **or assessed or assessable by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer ; (b) the value so adopted or assessed or assessed or assessable by the stamp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eming provision is applicable for the purpose of section 48. It is a settled law that any deeming provision is to be strictly interpreted. A deeming provision provides for certain presumptions and such presumption cannot be extended beyond the scope of deeming provision. If the statute makes section 50C applicable for the purpose of section 48, then the deeming provision of section 50C cannot be applied in respect of other sections of the Income Tax Act. We find that similar view is taken by the ITAT, Ahmedabad Bench in the case of ITO Vs. Harley Street Pharmaceuticals Ltd., 38 SOT 486 (Ahd) wherein the ITAT held as under: In the instant case, the Assessing Officer had applied this provision of section 50C for the computation of unexpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp duty would not ipso facto substitute the actual sale consideration as being passed on to the seller by the purchaser in the absence of any admissible evidence. The Assessing Officer is obliged to bring on record positive evidence supporting the price assessed by the State Government for the purpose of stamp duty. The view of the Tribunal is clear from pain 7 of its order, which reads thus:- From a plain reading of this provision, it emerges out that the value adopted or, assessed by any authority of a State Government for the purpose of payment of stamp duty in respect of land or building or both, shall for the purpose of section 48 be deemed to be the full value of the consideration received or accruing as a result of transfer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be justified. Learned 1st Appellate Authority has appreciated the facts and circumstances in right perspective. We do not find any error in the impugned order on this ground. Thus, the ground of appeal raised by the revenue is rejected. 3. Having heard the learned counsel, we are of the considered view that view taken by the Tribunal while accepting the order of the CIT Appeals) does not suffer from any legal infirmity. 6. The facts of the assessee case are identical. In this case also the AO had made addition simply on the basis of stamp duty valuation. No evidence of receipt of money by the assessee over and above the sale consideration shown is brought on record. We therefore respectfully following the above decision of the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that the assessee could not furnish confirmations of these creditors. However, the assessee had furnished copies of account of these persons for the year under consideration as well as the preceding and subsequent years which showed that there was transaction with those parties and part payment was made in the immediately preceding year as well as subsequent year. The CIT(A) with the following findings deleted the addition: From the copies of the letters addressed to the AO it is clearly seen that the Assessee had not only furnished copies of the ledger accounts of the said five parties in her books, copy of bank account of the Assessee with The Surat People's Co-op Bank was also furnished, to show that in the immedi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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