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TMI Blog2021 (7) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... ate which is less than 10%. Mumbai bench of the Tribunal in the case of M/s John Flower (India) Pvt. Ltd. [ 2017 (1) TMI 1682 - ITAT MUMBAI ] while considering an identical issue has deleted the addition made by the AO u/s 50C on the ground that such difference is less than 10% of the stamp duty valuation. Since the difference between circle rate and the actual sale consideration in the instant case is about 7.7% of the circle rate, which is less than 10% of the stamp duty valuation, therefore, respectfully following the decision of the Mumbai Bench of the Tribunal, hold that the ld.CIT(A) was not justified in sustaining the addition made by the AO. Accordingly, the order of the CIT(A) is set aside and the grounds raised by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty was paid by the purchaser worked out to ₹ 59,78,115/-. The assessee has accounted for as its income at ₹ 19,30,600/- being 35% of ₹ 55,16,000/-. The AO, therefore brought to tax an amount of ₹ 1,61,740/- being 35% of the difference of ₹ 4,62,115/-. In appeal, the ld. CIT(A) upheld the action of the AO by observing as under:- 3.2. I have carefully considered the assessment order and written submission filed by the Ld. AR. It is seen that the appellant sold certain properties forming part of stock in trade. The properties were sold at a price which happened to be less than the stamp duty value. The stamp value required to be paid for registration of sale of properties was accepted and paid by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value of consideration which has been adopted or assessed by the stamp valuation authority for the purpose of computing the capital gains. Regarding the Ld. AR's submission that the AO should have referred the valuation of the property to the valuation officer, the said section does not make reference mandatory. The legislature has used the word 'may' which indicates that the AO may make a reference to the valuation officer. However, the appellant s case is covered by the provisions of sub-section-1 of section 43CA. Therefore, there was no need for the AO to refer the valuation of the property to the valuation officer. Hence, the contention of the appellant are rejected. In view of the above discussion I am of the considered o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. (supra), the addition sustained by the CIT(A) should be deleted. 5. The ld. DR, on the other hand, relied on the order of the AO and the ld.CIT(A). 6. I have considered the rival arguments made by both the sides , perused the orders of the AO and the CIT(A) and the paper filed on behalf of the assessee. I have also considered the various decisions cited before me. I find, the AO, in the instant case, made addition of ₹ 1,61,740/- being 35% of the difference of ₹ 4,62,115/- on account of sale of flat sold by M/s Techmen Buildwell (P) Ltd. for ₹ 55,16,000/- as against the circle rate of ₹ 59,78,115/-. I find, the ld.CIT(A) sustained the addition made by the AO the reasons of which have already been repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation in respect of Plot in survey No. 22 and 42 is less than the stamp valuation it is ₹ 33,48,284/- which is less than 10% of the stamp duty valuation of the said plot. Therefore, in view of the ratio of the decisions relied on by the assessee, the assessee should succeeded in its appeal. The Jaipur Bench in the case of Smt. Sita Bai Ketan (Supra) held as under:- 4.2 We have heard rival contentions and perused the material available on record. We find that the Hon ble coordinate Bench in ITA No. 15431PN/2007 in the case of Rahul Constructions Vs. DCIT (Supra) has held as under:- We find that the Pune Bench of the Tribunal in the case of Asstt. CIT vs. Harpreet Hotels (P) LTd. Vide ITA No. 1156- 1160/Pn/2007 and relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Authority and declared by the assessee is less than 10%. Therefore, respectfully following the decision of the Hon ble Coordinate Bench, we hereby direct the AO to adopt the value as declared by the assessee. This ground of the assessee is allowed . 8. Therefore, respectfully following the said decision we direct to AO to adopt the valuation of sale consideration as declared by the assessee. The additions made by the Assessing Officer u/s. 50C is deleted and as grounds raised by the assessee are allowed. 8. Since the difference between circle rate and the actual sale consideration in the instant case at ₹ 4,62,115/- is about 7.7% of the circle rate, which is less than 10% of the stamp duty valuation, therefore, respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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