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TMI Blog2023 (5) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... the property within 3.5 months and it cannot fetch the price as deemed by the AO on the strength of stamp duty valuation, AO should have referred it to the Valuation Cell. CIT(Appeals) has erred in observing that since the assessee has not asked the AO to refer the valuation of this property to the Valuation Cell, therefore, there was no necessity at the end of the AO to determine the fair market value u/s 50C(2) of the Income Tax Act. Quasi judicial authorities are being respected not on account of their power to legalise the injustice on technical ground but because they are capable of removing injustice and is expected to do so. Once the fact was brought to the notice of ld. AO that this property was purchased for a sum of Rs.2.38 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In other words, the grievance of the assessee relates to computation of income on account of sale of a house property with the help of section 50C of the Income Tax Act. 3. Brief facts of the case are that the assessee has filed its return of income electronically on 29.03.2015 declaring total income of Rs.7,73,200/-. The case of the assessee was selected for scrutiny assessment and a notice under section 143(2) was issued and served upon the assessee. The ld. Assessing Officer while making an addition of Rs.1,10,21,820/- made the following discussion:- During the course of assessment proceedings it is observed from the sale deed that the sale consideration of the property sold on 30.05.2012 is Rs.2,80,00,000/- . But as per the repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1,10,21,820/-} is added to total income. 4. Appeal to the ld. CIT(Appeals) did not bring any relief to the assessee. 5. Before us, ld. Counsel for the assessee raised threefold of submissions. In his first-fold of submission, it was contended that the assessee has purchased its landed property on 19.01.2012 for a consideration of Rs.2,38,00,000/-. It was sold on 30.05.2012 for a consideration of Rs.2,80,00,000/-. The property was kept by the assessee for a period of less than 3.5 months. The stand of the assessee was that the capital gain is not being claimed by the assessee on account of sale of this property, rather it was in the nature of adventure in the trade or business hence section 50C is not at all applicable. 6. In h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta. 9. We have duly considered the rival contentions and gone through the record carefully. Section 48 has a direct bearing on the controversy in hand, therefore, we take note of the relevant part of this section, which reads as under:- Mode of computation:- 48. The income chargeable under the head Capital gains shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely: (i) expenditure incurred wholly and exclusively in connection with such transfer; (ii) the cost of acquisition of the asset and the cost of any improvement thereto; (iii) in case of specified entity referred to in sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer: Provided that where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer: Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than the value adopted or assessed by any authority of a State Government for charging the stamp duty, then such valuation determined by such State Government would be deemed to be the full value of consideration. In other words, stamp duty valuation will be adopted as a full value of the consideration as prescribed in section 48 of the Income Tax Act. 13. However, sub-clause (2) of section 50C further provides that if an assessee claims that the value adopted or assessed by the stamp valuation authority exceeds the fair market value of the property as on the date of transfer, then the ld. Assessing Officer may refer the valuation of the capital asset to the Valuation Officer. The moment assessee pointed out that it has sold the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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