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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 ..... 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. That the action of the Centralized Processing Centre (CPC), in making the adjustment of Rs. 1,81,34,400/- u/s 50C by adopting " Stamp Duty Valuation" as " Full Value of Consideration" without properly appreciating the provisions of section 50C and in total disregard to the Valuation Report is illegal and unjustified. 1.3. That the genuineness of full value of sale consideration being not in dispute, it is not open to consider any adjustment without taking note of proviso to section 50C. 2.1. That on the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue 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 case reveal that the Assessee had sold a property on 05.09.2018 for a sale consideration of Rs. 12,25,00,000/-; however the value adopted by stamp duty authority was Rs. 14,06,34,400/-. Further, the assessee has transacted this property sale transaction after getting the property valued form a registered valuer which has computed the fair market value as Rs. 11,73,02,000 /- and the same being a distress sale is in close proximity to actual sale consideration of Rs. 12,25,00,000/-. The Assessee vide letter dated 17.10.2018 has requested to the Assessing Officer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; or (vi) addition of income appearing in Form 26 AS or Form 16 A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made: Provided also that no adjustment sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar in which the return is made. Explanation.- For the purposes of this sub- section,- (a) " an incorrect claim apparent from any information in the return" shall mean a claim, on the basis of an entry, in the return,- (i) of an item, which is inconsistent with another entry of the same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; (b) the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition was sustained. 4. I have considered rival submissions and perused the material on record. Undisputedly, while processing the return of income filed by the assessee under section 143(1) of the Act, the addition has been made by way of adjustment applying the provision of section 50C(1) of the Act. Contesting the addition, the primary contention of the assessee before me is to the effect that the addition made under section 50C(1) of the Act cannot fall within the ambit of adjustment provided under section 143(1)(a) of the Act. On careful examination of section 143(1) of the Act, i t is noticed that the following adjustments can be made while processing the return under the said provision:- " 6. No doubt, in the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, sub- section (2) carves out an exception by providing that if the assessee objects to the stamp duty value, the valuation has to be referred to the Department Valuation Officer (DVO) and in case the value determined by the DVO is lower than the stamp duty value, the value determined by DVO has to be considered for computing capital gain in terms with sub- section (3) of section 50C. Therefore, sub- section (1) to section 50C cannot be considered in isolation. By making an adjustment of the nature contemplated under subsection (1) to section 50C, that too, by CPC, the Department takes away a valuable statutory right given to the assessee to object to the value determined by stamp valuation authority. 6. Therefore, such type of adj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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