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TMI Blog2023 (6) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... r US, Judicial Member For the Assessee : Sh. R. S. Singhavi, Adv. Sh. Satyajeet Goel, Adv. For the Revenue : Sh. Ram Dhan Meena, Sr. DR ORDER Dr. B.R.R. Kumar, Accountant Member The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 14.07.2022. 2. The assessee has raised the following grounds of appeal:- 1.1. That on the facts and circumstances of the case, the CIT(A) was not justified in not adjudicating the ground relating to arbitrary adjustment in the Intimation Order passed u/s 143(1)(a) of the Income Tax Act, 1961 as the proposed adjustment is beyond the scope of provisions of section 143(1)(a) of the Income Tax Act, 1961. 1.2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence to DVO is illegal and not sustainable under law. 4. That orders passed by lower authorities are not justified on facts and same are bad in law. Brief facts : 3. The assessee filed return of income on 25.06.2019 declaring total income of Rs. 3,33,25,826/- and has claimed deduction of Rs. 50 lacs u/s 54 EC of the Income Tax Act, 1961. 4. An intimation order u/s 143(1)(a) of the Income Tax Act, 1961 was passed on 02.12.2020 by the CPC wherein an adjustment of Rs.1,81,34,400/- u/s 50C was made by adopting Stamp Duty Valuation as Full Value of Consideration . Further, the CPC Bangalore has also disallowed the benefit of deduction of Rs. 50 lacs claimed by the Assessee of investment in RECL Bonds. 5. Facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return; (ii)an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub- section (1) of section 139; (iv) disallowance of expenditure 97 [ or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under 98 [ section 10AA or under any of the provisions of Chapter VI- A under the heading C.- Deductions in respect of certain incomes , if] the return is furnished beyond the due date specified under sub- section (1) of section 139; o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax, interest or fee is payable by, or no refund is due to, him: Provided further that no intimation under this sub- section shall be sent after the expiry of 99 [ nine months] from the end of the financial year in which the return is made. Explanation.- For the purposes of this sub- section,- (a) an incorrect claim appar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessing Centre (CPC) Bangalore found that in the year under consideration, the assessee had sold an immovable property. It was found that the stamp valuation authority determined the value of the property in excess of the declared sale consideration. Accordingly, invoking the provisions of section 50C(1) of the Income Tax Act, 1961, the CPC made adjustment of Rs. 5,07,000/- to the income of the assessee, being the difference between the declared sale consideration and the value determined by the stamp valuation authority for stamp duty purpose. Though, the assessee contested the aforesaid addition before learned Commissioner (Appeals) however the addition was sustained. 4. I have considered rival submissions and perused the material on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio or fraction; 5. On a conjoint reading of section 143(1)(a)(ii) along with Explanation it becomes very much clear that the addition under section 50C(1) cannot be in the nature of incorrect claim as provided in Explanation to section 143(1)(a)(ii) of the Act. This is so because, section 50C has to be read as a whole and cannot be restricted to sub- section (1) alone. It is fairly well settled, a deeming provision has to be taken to its logical end. Undoubtedly, section 50C is a deeming provision. Though, sub- section (1) of section 50C provides for substituting the stamp duty value as deemed sale consideration in place of the declared sale consideration, however, sub- section (2) carves out an exception by providing that if the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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