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TMI Blog2023 (9) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, and rightly so, the Government Notification determining the market value of the said property and pass the Assessment Order, the question of reopening the assessment for reasons as recorded would not arise. Amendment in Section 50(C), inserted by the Finance Act, 2016, with effect from 1st April 2017, which 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 purpose of computing full value of consideration for such transfer. Though not raised initially, later in view of the amendment to Section 50(C) appellant had challenged even this determination of capital gains on the grounds that the capital gains should be worked out on the basis of the date of the agreement fixing the amount of consideration and not the date of registration for the transfer of the capital asset and therefore capital gains should be determined on the basis of consideration - The appellate authority accepted petitioners submissions that this amendment should be read t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion adopted for assessment by the State Govt. for stamp duty purposes would be deemed to be the full value of the consideration in cases where the consideration received is less than the value taken by the State Govt. for the stamp duty purpose. In this case, the actual consideration received as indicated in the agreement of sale is Rs. 12.21 crores while the stamp duty valuation is Rs. 31.73 crores. Thus the stamp duty valuation has been taken as the deemed consideration for the purposes of determining the capital gains. Thus the issue whether there could be any reason for the Assessing Officer to believe that income chargeable to tax has escaped assessment and whether there was any failure to disclose facts material to assessment on the part of the petitioner, prima facie appear to be in favour of the petitioner subject to detailed examination at final hearing. 4) Thus, interim relief in terms of prayer clause (c). 5) Mr. Pinto, learned Counsel on behalf of the respondents waives service. 3. No reply affidavit opposing the petition has been filed. The petition came to be listed on 23rd June 2023, 30th June 2023, 7th July 2023, 14th July 2023, 21st July 2023, 28t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Various adjustments were made but what is relevant to this petition is that in view of Section 50(C) of the Act full value of sale consideration for computing capital gain on the sale of the said property was taken at Rs. 31,73,89,000/- being the market value for the purpose of payment of stamp duty as per Notification dated 20th April 2007. Petitioner independently challenged the assessment order and the appeal before the Commissioner of Income Tax (Appeals) (CIT[A]) at the time the petition was filed was still pending. During pendency of this petition, the CIT[A] has dismissed the appeal against which petitioner has filed an appeal on the other aspect before the Income Tax Appellate Tribunal (ITAT). The market value of the said property is not the subject matter of the appeal. 8. Later petitioner received a notice dated 4th January 2013 under Section 148 of the Act proposing to reassess the income of petitioner for the Assessment Year 2006-2007 on the alleged belief that income has escaped assessment within the meaning of Section 147 of the Act. Petitioner was also provided the reasons for reasons to believe. Petitioner filed its objections vide its letter dated 13th Februar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 31,73,89,000/-. 3. Subsequently, during the course of assessment proceedings for A.Y. 2008-09 in this case, it was reported by the Sub-Registrar Office, Uppal, R.R. District, uploaded through the AIR information, that the assessee had sold an immovable property as mentioned supra on 04-05-2007 at the market value of Rs. 179,84,29,000/-. The Sub-Registrar, Uppal, R.R. District, after verifying their records, confirmed that sale deed was executed between the assessee and M/s. Top Notch Infrastructure Pvt. Ltd. at Hyderabad vide Regd. Document No. 5824 of 2007 dated 04-05-2007 for the market value of Rs. 179,84,29,000/-. 3.1 While finalizing the assessment order for A.Y. 2006-07, the AO has computed the capital gains to the assessee considering the ready reckoner/Govt. Value of land to the tune of Rs. 31,73,89,000/- instead of Rs. 179,84,29,000/- as reported by the Sub-Registrar, Uppal, R.R. Dist. 4. Therefore, I have reason to believe that the income of Rs. 148,10,40,000/- has escaped assessment as per section 147 of the Act in A.Y. 2006-07 relevant to F.Y. 2005-06. 5. In view of the above, the assessment passed on 05-02-2010 was under assessed to the tune o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sale Consideration 31,73,89,000 Less : Indexed value of land 1,63,055 Long Term Capital Gain 31,72,25,945 (emphasis supplied) 13. Therefore, the issue of capital gains as regards the said property and application of Section 50(C) of the Act was the subject of consideration of the A.O. while completing assessment. Therefore, there can never be failure to truly and fully disclose material facts. 14. Ms. Goel strongly opposed the petition and submitted that there was an order passed by the Collector on 29th September 2006 holding that the market value of the property was Rs. 179,84,29,000/- and the capital gains should have been worked out on this figure and not on Rs. 31,73,89,000/-. There is no doubt that there was an order passed by the Collector determining the market value at Rs. 179,84,29,000/- for the purpose of stamp duty. But that order was modified by the Revenue Department, Government of Andhra Pradesh which also issued a Notification published in the Andhra Pradesh Gazette determining the value at Rs. 31,73,87,000/-. 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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