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TMI Blog2018 (10) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the assessment years. During the previous year relevant to the assessment year under consideration, the assessee alongwith another sold immovable property vide Sale Deed No.454/2012 and derived sale consideration of Rs. 16 Lakhs to her share. The capital gain arising on the sale of property worked out to Rs. 2,26,250/- and including the share income from partnership of Rs. 6,316/-, the total income for the year under consideration is Rs. 2,32,566/- which is below the taxable limit. Therefore, the assessee did not file the return of income for the assessment year under consideration. The Assessing Officer issued a notice u/s. 148 of the Income Tax Act [Act] on 03-02-2015 on the ground that the Long Term Capital Gain arising out of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T Act for invoking the provisions of Sec.50C of the I.T.Act. 3. The learned Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing officer in determining the sale consideration at Rs. 36,30,000/- as against the actual sale consideration of Rs. 16 lakhs. 4. The learned Commissioner of Income-Tax (Appeals) ought to have considered the detailed explanation submitted before him and ought to have directed the Assessing Officer to adopt the sale consideration at Rs. 16 lakhs. 5. The learned Commissioner of Income-Tax (Appeals) ought to have seen that the provisions of Sec.50C are applied and the sale Consideration was adopted at Rs. 36,30,000/- without reference to the valuation cell and that therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er argued that even though there is a taxable income under the provisions of Section 50C of the Act, assessee did not file the return of income till such time the notices are issued. 8. In reply, Ld.AR contended that without considering the capital gains u/s. 50C, the income is below the taxable limit and assessee has no tax liability. 9. Considered the rival submissions and material on record. The assessee worked out the capital gain arising on the sale of property at Rs. 2,26,250/- whereas the AO determined the long term capital gains at Rs. 22,56,250/- by invoking section 50C. , which was confirmed by the CIT(A). We notice that similar issue came up for consideration before the coordinate bench of this Tribunal in the case of M/s. Amar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, in our opinion, the manner laid down under the Wealth-tax Act has to be followed for the purpose of ascertaining the notional value of the property for the purpose of computing capital gain as provided under sec. 50C of the Income-tax Act".
9.1. Respectfully following the above decision, we direct the AO to refer to the Valuation Officer to determine the fair market value u/s 50C(2). Accordingly determine the capital gain after giving proper opportunity of being heard to the assessee. Therefore, the impugned order is set aside and AO is directed to redo assessment de-novo.
10. In the result, appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced in the open court on 26th October, 2018 X X X X Extracts X X X X X X X X Extracts X X X X
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