9911796707
TMI Blog2017 (11) TMI 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... AO. AO therefore, not justified to adopt the value other than as adopted by the Stamp Duty Authorities As per the provision of section 50C only assessed value by the Stamp Duty Authorities is to be considered for the purpose of sale consideration of property if the consideration shown in agreement to sale In doing so, less than the Stamp Duty Authorities valuation. In view of these facts and circumstances, and respectfully following the decision of Co-ordinate Bench [ 2011 (4) TMI 643 - ITAT, AHMEDABAD] we do not find any fault or infirmity in the order of Id. CIT (A), fair same is upheld. Consequently, appeal of the revenue is dismissed. - I.T.A No.2836/Ahd/2013 - - - Dated:- 22-11-2017 - SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER Assessee by : Shri Kushal N. Gheewala, CA Revenue by : Shri Anil Dhaka, Sr. D. R ORDER 1. This appeal filed by the Revenue is directed against the order of Learned Commissioner of Income-tax (Appeals)-l, Surat [in short the CIT(A) ] dated 04.09.2013 pertaining to Assessment Year 2009-10, which in turn has arisen from the order dated 30.12.2011 passed by the Deputy Commissioner of Income-Tax,Circl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 but it was well before the date of registration of document. Therefore, the AO calculated jantri price at Rs. 5,81,80,500 [ in 16623 sq. mtr *3500 per sq.mtr] as on date of registration of document on 25.07.2008. So difference between document rate and jantri rate comes to Rs. 5,29,44,500. The AO also noted that during purchase of said property market rate as per jantri rate was Rs. 85,54,250 as valued by stamp duty authority on which the assessee had paid Stamp duty Of Rs. 6,25,061 as per challan No. 326 dtd. 01.06.2006. Thus, the AO observed that the assessee has shown less purchase price as well as less sale price as per market rate. In view of these facts, the AO was of the view that when sale took place in year 2008-09, hence, jantri year 2008-09 has to be adopted. The State Government had given an immunity of lower stamp duty valuation to people who had purchased stamp paper before 31.03.2008 and registered in year 2008-09. However, that immunity cannot be extended to applicability to section 50C of the Act as it was meant for limited benefit to stamp duty payment. The AO also rejected the value adopted at the rate of Rs. 450 per sq.mtr by Valuation Officer to whom the AO r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. The Id. Sr. DR submitted that the jantri rate on the date of registration of property i.e. 25.07.2008 was more than the stamp duty valuation adopted on the basis of stamp duty rate before 31.03.2008. Hence, the value assessable on the date of registration of sale deed should be adopted as per provisions of section 50C of the Act. Therefore, the AO was correct in taking valuation based on prevalent market rate and stamp duty rate. 6. Per contra, the learned counsel for the assessee submitted that the provision of section 50C are not applicable in the instant case, as the sale consideration shown by the assessee is equal to stamp duty valuation done and accepted by the Stamp Duty Authorities. The learned counsel for the assessee further brought to our notice that the AO in his remand report dtd. 27.06.2013 (PB-107-108) has stated that market value of the property is much below the consideration amount mentioned in the agreement dtd. 29.03.2008 registered on 25.07.2008 wherein the AO stated as the copy of agreement is perused and the specific details in this regards were called for from the Office of Sub Registrar, and it is gathered that the consideration amount mentioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are applicable to A.Y. 2010-11, hence, these are not applicable for the year under consideration. The learned counsel for the assessee had relied in the case of Hasmukhbhai M. Patel v. ACIT Circle -1(1) Baroda [ 2011] 12 taxmann.com 300 (Ahd) of Co- ordinate Bench of which relevant para-5 is extracted hereunder: 5. We have carefully considered the rival submissions and perused the material placed before us. Section 50C of the Income-tax Act as it stood at the relevant time reads as under: 50C. Special provision for full value of consideration in certain cases. - (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. From the above, it is evident that for applicability of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer. We direct the Assessing Officer to verify the value actually adopted or assessed by the stamp valuation authority for the purpose of payment of stamp duty in respect of transfer of the land during the year under consideration. The value adopted/assessed by the stamp valuation authority shall be considered for the purpose of computing capital gain as per section SOC of the IT Act. Accordingly, the Ground Nos. 1, 2 and 3 as well as additional ground of the assessee's appeal are allowed as above. 8. The facts of the instant case are similar. There is no dispute regarding sale consideration . The dispute regarding the rate adopted on the basis of information collected from Stamp Duty Authorities with regard to various rates which were adopted for the purpose of payment of stamp duty in respect of transfer of property in various area. On the basis of such information, The AO worked out the value of land sold and adopted the same for the purpose of stamp duty made taken the same for the purpose of computing capital gain. In our opinion, this exercise is to be made by the AO Stamp Duty Authorities and not by the AO. The AO therefore, not justified to adopt the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
