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TMI Blog2019 (3) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee as income from other sources - CIT-A has deleted the whole addition as AADHAR card or Voter identification has been given by those persons - HELD THAT:- There is no concrete finding about the difference between the agricultural produce. He also did not examine the facts that how the persons of such a small mean could have given the rent in advance to the assessee. He also did not gave any finding that the amount of rent paid by the other person is out of borrowings and what could have been the sources of borrowing by that person to pay such a huge rent to the assessee. He merely believed the written submission of the assessee for deleting the addition. Therefore, we do not find that on the facts stated by the learned assessing officer the addition deserves to be deleted. We further fully agree with DR that the learned assessing officer should have made the addition as unexplained credit u/s 68 but the learned assessing officer under the mistake has made the addition as income from other sources. We are not concerned with it and now we cannot correct it also. No infirmity in the order of AO in treating the above income as income from other sources and certainly n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 50C of the act. Therefore for plot number 76 the learned AO adopting the sale consideration of INR 10398843 computed the short-term capital gain of INR 9 740081 against short-term capital loss disclosed by the assessee of INR 1 58762. With respect to plot number 76C the AO adopted the net sale consideration under section 50 C of INR 1 0090624 and computed shortterm capital gain of INR 9 563617 against short-term capital loss shown by the assessee of INR 2 7009/ . The learned assessing officer also noted that the assessee has shown the agricultural income as rent received from agricultural land from two different parties. On examination of both the parties, the learned AO noted that they are not capable of proving that they have paid the rent pointing out many infirmities. Therefore, the agricultural land rent shown by the assessee of INR 2,200,000 was assessed by the learned assessing officer as income from other sources. Consequently the assessment under section 143 (3) of the income tax act was passed on 31/3/2014. On appeal before the learned assessing officer both these additions are deleted and therefore the revenue is in appeal before us against both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the provisions of section 50C and calculated the short-term capital gain in respect of the above properties and made an addition of INR 19303658/ . 6. Assessee approached The Commissioner of Income Tax Appeals 14, New Delhi against the order of the AO. The learned CIT A passed an order on 24/9/2015. The learned CIT A held that provisions of section 50C are not applicable in case of the assessee because (I) the learned under consideration is not categorized as industrial land as per the land records of the government of Delhi on the date of the sale therefore the rate applied by the AO of the industrial area are not applicable to agricultural area (II) the area in which the appellant had sold land in April/May 2010 is still not notified as industrial area and various conditions to be fulfilled by the occupants are still not complied with therefore it cannot be called as an industrial area (III) the learned AO has referred to the notification dated 23/3/2015 which could not be applied for the sale of land in April and May 2010 . (IV) assessee transferred the property in question by executing an agreement which was not registered with the registering authority a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 50 C and stated that decision relied by CIT (A) are prior to amendment and does not apply to the AY in this appeal. e. learned assessing officer is not required to bring anything more on record other than the difference between the fair market value as per the circle rate and the net sale consideration shown by the assessee. f. Sub divisional magistrate does not have any authority to state that land as agricultural land and which land as industrial land. She otherwise stated that it is not the dispute that whether the land is agricultural or not but the real dispute is what is the fair market value of that particular property for the purpose of the circle rate. Therefore she stated that the deletion of the addition of INR 1 9003658 made by the learned CIT A ignoring the provisions of section 50C of the act is not sustainable in law. 8. We have carefully considered the contentions of the learned senior departmental representative as well as perused the orders of the lower authorities. Admittedly, the assessee has sold two plots of land where the sale consideration has not been substituted with the circle rate. The learned AO adopted the circle rate of the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (1) of section 16A of that Act. 92 [ Explanation 1 ]. - For the purposes of this section, Valuation Officer shall have the same meaning as in clause ( r ) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). 93 [ Explanation 2.- For the purposes of this section, the expression assessable means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.] (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed 93 [or assessable] by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed 93 [or assessable] by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.] Therefore, even if the document is not registered with the registering authority, the sale price is required to be substituted with the fair market value, if it is more than the sale consideration declared by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was also submitted the details of lease money received from the parties as well as the agricultural produce details. The learned assessing officer examined the parties from whom the assessee has received lease rent. Based on the statement the learned assessing officer came to conclusion that such persons were very poor and cannot pay such a huge sum in advance to the assessee. They also denied in their statement that they have given any advance to the assessee. There was difference in the produce which assessee is claiming and those persons are stating. The learned assessing officer has concluded that such person did not have any capacity to pay such a huge amount of money to the assessee as advance money. They do not have any knowledge of agricultural. The statement of another person was also recorded who did not reply to many things such as his regular monthly income , type of crops and time of crop cultivated. Such person also stated that he has paid a sum of INR 1,000,000 to the assessee in instalment from borrowed money but did not disclose the source of such borrowings . He did not have any bank account and did not reply to any questions related to agricultural activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mently supported the order of the learned assessing officer and stated that both the persons from whom the rent has been received have been examined by Ao, both of them have been found not the persons of adequate means. She further stated that there is a difference between the agricultural produce claimed by the assessee and stated by those persons. It was further claimed that they have denied the agricultural income earned by them of such a nature and has also denied as advance to the assessee. She also stated that the learned CIT A has deleted the whole addition only based on the proof of those persons about their identity. She stated that the assessee has received the money of INR 2,200,000 as agricultural land, which does not show any genuineness of the receipt of such a huge rent when those persons have not earned any money out of this agricultural land. She further stated that when the agricultural activities are not done on that particular land or it is so small that it cannot generate such a kind of revenues, the whole claim of the assessee of receiving such a huge rent is devoid of any merit. She further stated that though the assessing officer has made the addition as i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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