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TMI Blog2020 (8) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, rather it would be appropriate to adopt the actual market value of the property taking into consideration of the litigation involved in the property, which is nothing but the actual sale consideration received by the assessee. Therefore,hereby direct the Ld. AO to compute the capital gains in the hands of the assessee based on the actual sale consideration received by the assessee of ₹ 7,56,250/-. Claim of deduction u/s. 54F - Even before us at this stage, the assessee has not produced any evidence to prove that she had invested in another residential house property. Claim of the assessee that she had invested in residential house property by way of payment through cheque to her spouse alone will not establish that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g total income of ₹ 12, 83,434/- and agricultural income of ₹ 50,000/-. Initially, return of income was processed U/s. 143(1) of the Act on 18/7/2007. Subsequently the case of the assessee was reopened because it was revealed that the sale consideration disclosed in the return of income towards the sale of her immovable property was lesser than the SRO value. 4. During the course of scrutiny assessment proceedings, it was observed by the Ld. AO that the assessee had sold her land consisting of 359.16 sq. yds. and 1153.33 sq. yds. in Survey No. 25, Medipalli Village, for an amount aggregating to ₹ 7,56,250/-. It was further revealed that the value adopted for the purpose of stamp duty toward the registration of the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hminarayana Reddy and Sri Jukku Veeranarayana Reddy all sons of Sri Jukku Ranga Reddy. The first Sale Deed Document No.468 was made in respect of 359.16 sq. yards for a consideration of ₹ 3.78 lakhs and the second Sale Deed in respect of back portion of land vide doc No.12832 for 1153.33 sq. yards. the land is situated at Medipally village in Ghatkesar Mandai. Sale consideration in respect of both the Sale Deeds worked out to ₹ 7.56 lakhs and the value on which stamp duty was paid ₹ 16,54,500/-. 5. We submit that the property sold under Sale Deeds originally purchased in the year 1992 vide two separate Sale Deeds dt.14.5.1992 17.12.1992 and the Sale Deeds were executed by GPA on behalf of original vendors. At the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above gram panachayat area. 4.1 However, the Ld. AO rejected the submission of the assessee by stating that, there was no scope to adopt the actual sale value received by her by virtue of section 50C of the Act because the assessee has not challenged the valuation before the Stamp Valuation Officer while registering the property. Accordingly, the Ld. AO invoked the provisions of section 50C of the Act and adopted the SRO value as the sale consideration viz., ₹ 16,54,500/- for the purpose of computing the capital gain in the hands of the assessee. Further, the Ld. AO denied the claim of exemption U/s 54F of the Act because the assessee had failed to furnish evidence for the investment made in the acquisition of another residenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate to remit the matter back to the Ld. AO in order to obtain the valuation report from the Ld. DVO as it will cause great inconvenience to the assessee. Further, from the facts of the case it is apparent that the sale value declared by the assessee is only 46% of the SRO value of ₹ 16,54,500/- (₹ 7,56,250 X 100 / 16,54,500). Since the property sold by the assessee is a litigated property, I am of the considered view that the market value of the property cannot exceed the actual sale consideration received by the assessee of ₹ 7,56,250/-. Hence, I do not find it appropriate to adopt the SRO value for the purpose of computation of the capital gains in the hands of the assessee, rather it would be appropriate to adopt t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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