9911796707
TMI Blog2024 (11) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... et in those circumstances, the net consideration is deemed to have been applied for charitable purposes to the extent consideration is utilized. Net consideration is defined in explanation (iii) meaning the full value of the consideration received or accruing as a result of the transfer of the capital asset. Therefore, there is no provision under section 11 (1A) to substitute the net consideration with full value of the deemed consideration. Section 50 C of the act applies only for the purposes of computation of capital gain under section 48 of the act. Provisions of section 48 of the act does not apply to a charitable trust in view of provisions of section 11 (1A) of the act, so far as the facts of this assessee are concerned. Though assessee has relied upon several judicial precedents to support its case that in case of a charitable trust provisions of section 50 C does not apply, but even on the facts of the present case also we do not find that there should have been any addition on account of stamp duty value of the property in assessment year 2018-19, when the property is transferred in assessment year 2016 17 and revenue has accepted the same by framing an assessment order u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mumbai have not considered the claim of the appellant that the provisions of Section 50C are not applicable in case of charitable trusts whose income is computed under Section 11.12 and 13 of the Income tax Act, 1961. The learned CIT(Exemptions), Mumbai have set aside all the decisions passed in the previous years and have not made any mention about this point in the order under Section 263 of the Income Tax Act 1961. 3. The learned CIT(Exemptions), Mumbai has erred on facts and in law in taxing the same Income twice i.e., the same amount of Rs 52,52,52,525/-in AY 2017-18 as well as in AY 2018-19 which is against the principles of Taxation as it amounts to double taxation. The learned CIT(Exemptions). Mumbai have not shown caused appellant to know the reason why it was considered in AY 2017-18 4. Such other consequential reliefs as the facts and circumstances demand. 03. The brief fact of the case shows that the assessee is a trust who e-filed its return of income for A.Y. 2018-19 on 29.09.2018 declaring total income at Rs. NIL. The trust is registered u/s. 12A of the Act vide Registration dated 28.01.1976 and the assessee has also claimed exemption under Section11 of the Act. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of ₹ 25,45,91,210/- has been invested against the above capital gain. As the assessee has not furnished the details in the income tax return the cost of purchase was not available. It was further recorded that as per Section 36 of Maharashtra Public Trust Act permission of charity commissioner is mandatory for transfer of the property which is also not available on record. Therefore, show cause notice was issued on 18.01.2024 wherein it was mentioned that assessee sold property for consideration of ₹ 52.52 crores which was assessed by stamp duty authority at ₹ 82,31,00,00/- thus capital gain has resulted of ₹ 29,78,47,975/- is not assessed. Therefore, provisions of Section 263 were invoked. 08. In response to the show cause notice assessee has furnished the reply on 08.02.2024. Assessee submitted that. i. Assessee has already offered the capital gain as the sale deed was executed on 2/12/2016 in AY 2017-18. Copy of computation of total income and ROI was submitted. ii. Sale deed was registered on 17/05/2017 in AY 2018-19, but as sale was already shown in AY 2017-18 same was not shown in AY 2018-19. iii. stamp duty value of ₹ 82.31 crore is higher tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er book containing 199 pages wherein the assessment proceedings communication and reply thereto under Section. 263 of the Act were also made. v. The learned Authorized Representative further relied upon several judicial precedents of the coordinate Benches wherein it has been held that the assessee being a charitable trust, provisions of Section 50C of the Act does not apply. He relied upon the several judicial precedents. 011. Therefore, it was submitted that the order is neither erroneous and nor prejudicial to the interest of the Revenue. It was claimed that the solitary issue for which action u/s. 263 of the Act is taken is only for the reason of substituting sale value by a deemed sales consideration in the case of sale charitable trust by invoking the provisions of Section 50C of the Act. 012. The learned Departmental Representative vehemently supported the order of the learned CIT(E). It was submitted that the learned assessing officer has failed to verify that the sale consideration recorded by the assessee is less than the amount of stamp duty value of the property. Failure to examine the same has made the assessment order erroneous as far as prejudicial to the interest of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,525/-. viii. As the stamp duty value of the above property is found to be of ₹ 823,100,500/ as it was registered on 17/05/2017, the learned assessing officer despite above information did not make any addition of the stamp duty value of the property in the hands of the assessee. ix. The learned assessing officer has categorically referred to the provisions of section 11 (1A) of the act at page number 3 4 of the acts after considering the explanation of the assessee, as assessee has not disclosed the capital gain, made an addition of undisclosed income is of ₹ 525,252,525/ . x. The learned CIT has invoked the provisions of section 263 of the income tax act stating that the learned assessing officer should have taken the deemed sale consideration of ₹ 823,100,500/ and should have examined the applicability of provisions of section 50 C of the act and held that the order passed by the learned assessing officer is erroneous so far as prejudicial to the interest of the revenue. xi. It is apparent that the assessee has offered capital gain in assessment year 2017 18, the property was transferred in that year, property got registered in current assessment year. The capi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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