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TMI Blog2016 (11) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... red on facts and in law upholding the assessment order passed by the ld AO without giving reasons for his decision. 4. The learned Commissioner of Income Tax (Appeals) XXIV, Mumbai, has erred on facts and in law by upholding the assessment made by the ld AO where the AO has failed to determine the undisclosed income in accordance with the provisions section 50C of the Income Tax 1961. 5. The learned Commissioner of Income Tax (Appeals) XXIV, Mumbai , has erred on facts and in law by upholding The assessment made by the ld AO as Agricultural Income ,which was made without revealing the recording of subjective satisfaction Enunciated under the relevant provisions, where material found at the time of assessment was used against the appellant. 6. The learned Commissioner of Income Tax (Appeals) XXIV, Mumbai, has erred on facts and in law by upholding the addition as undisclosed income without considering the judicially and not applying the natural justice. 7. The learned Commissioner of Income Tax (Appeals) XXIV, has erred on facts and in law by Penalty u/s271(1)(c) made b the ld AO as justifying in penalty on certain issue of the appellant. 8. The order of the ld Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of appellate proceeding the Ld. AR vehemently protested the application of section 50C of the I.T. Act 1961 and argued that sale consideration shown in sale agreement should be accepted as true and fair consideration of the property." 5. On careful consideration of the arguments of the Ld. A.R. viz-a-viz facts stated in the assessment order, it immensely transpires that there is no force in the arguments of Ld. A.R. The Section sac of the Act states that value assessed by stamp duty Valuation Authority shall for the purpose of section 48 be deemed to be full value of consideration received or accruing as a result of such transfer. Thus by deeming provisions, sale consideration shall be deemed to be as value assessed by stamp duty valuation authority. The validity of this section was upheld by Hon'ble High Courts and in particular Hon'ble High Court of Madras and Hon'ble High Court of Bombay. Therefore, I am of the view that there is no substance in the argument of Ld.AR that section 50C is not applicable in the case of assessee. The non application of Section 50C in the case of assessee amounts to travesty of justice and the parliament. The legislative intention beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 50C was introduced with a view to prevent evasion of tax and under- valuation of the transaction and must be read in that context. The classification made by section sac is in respect of an identifiable group of assesses and is not arbitrary, unreasonable or discriminatory. (K.R. Palanisamy vs. UOI 306 ITR 61 (Mad) followed. The Hon'ble Special Bench of Jurisdictional IT AT Mumbai, had also upheld the applicability of section 50C for depreciable assets/ business assets, in case of ITO vs. United Marine Academy (date of order 25.4.2011) in following words. "There are two deeming fictions created in section 50 and section 50C for computing capital gains on building. While section 50 modifies the 'cost of acquisition' for purposes of section 48, section 50C modifies the term 'full value of the consideration' received or accruing as a result of transfer of the capital asset'. The two deeming fictions operate in different fields and there is no conflict between them. As section 50C was inserted to prevent assessee's indulging in under-valuation, there is no logic why it should not be applied to a depreciable building; (The full text of this judicial pronouncement is pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax and under valuation of the transaction and must be read in that context. The classification made by section 50C is in respect of an identifiable group of assessee and is not arbitrary, unreasonable or discriminatory.(K.R. Palanisamy vs. UOI 306 ITR 61 (Mad) followed." 5.2 In addition the Hon'ble Special Bench of Jurisdictional ITAT Mumbai, has also upheld the applicability of section 50C for depreciable assets/business assets, in the case of ITO vs. United Marine Academy the operative para of the judgement is reproduced below: "There are two deeming fictions created in section 50 and section 50C for computing capital gains on building. While section 50 modifies the 'cost of acquisition' for purposes of section 48, section 50C modifies the term 'full value of the consideration' received or accruing as a result of transfer of the capital asset'. The two deeming fictions operate in different fields and there is no conflict between them. As section 50C was inserted to prevent assessee's indulging in under-valuation, there is no logic why it should not be applied to a depreciable building." 6. We have duly considered the above cited judgments and therefore we are of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural income. On the contrary it immensely establishes that impugned income in form of agricultural income was a money laundering device to camouflage unaccounted income of the assessee under the garb of agricultural income Regarding the argument that in earlier year the said income was accepted by the then AO in assessment u/ s 143(3) is of no consequence. If the concerned AO had not examined the claim properly, there is no bar against the revenue to examine the case a because each year of assessment is independent of the previous years. If it is established that the same facts existed in. preceding year, it is amenable to take remedial action as per law to safeguard the interest of revenue. Accordingly this ground of appeal is rejected and action of AO is upheld (332 ITR 471 Delhi High Court)." 8. After hearing ld. DR and perusal of the record we are of the considered view that although ld. CIT(A) while considering the said issue has granted sufficient time to the assessee to substantiate his arguments by supporting documentary evidence/proof but even inspite of availing opportunities the assessee could not furnish any vital evidences to establish the genuineness of the agric ..... X X X X Extracts X X X X X X X X Extracts X X X X
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