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TMI Blog2025 (3) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessment Year (hereinafter, the 'AY') 2019-20 filed by the assessee is directed against the order dated 22.10.2024 of the Addl./Joint Commissioner of Income Tax (Appeals)-5, Chennai [hereinafter, the 'Addl. CIT(A)']. 2. The assessee, vide two grounds, has raised core issue is that whether the addition/adjustment of Rs. 36,51,250/- made under section 50C(1) of the Income Tax Act, 1961 (hereinafter 'the Act') can fall within the ambit of adjustments provided under section 143(1)(a) of the Act. 3. The relevant facts giving rise to this appeal are that the assessee filed his Income Tax Return (hereinafter, the 'ITR') on 25.10.2019 declaring income of Rs. 62,43,461/-. The assessee has shown Long Term Capital Gains of Rs. 46,23,385/- on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e guideline value of the said property on that date was Rs. 1,94,95,000/-, i.e. the minimum value of that property as fixed by the State Government, at which property can be registered. The said property was sold at Rs. 1,58,43,750/-, which was below the guideline value fixed by the State Government. As per Section 50 C of Income Tax Act, "the sale consideration value must not fall below the stamp duty value determined by the Stamp Value Authority. However, the income tax department allows a slight relief of 10% variation." Further, the capital gain was computed on the basis of actual sale consideration. The facts of the case in the light of the grounds of appeal, statement of facts and the submissions made by the appellant were careful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Malik (supra) has held as under: 5. I have heard the parties and perused the materials on record. The basic issue requiring consideration is, whether the addition made under section 50C(1) can fall within the ambit of adjustments provided under section 143(1)(a) of the Act. It is noticed; the following adjustments can be made while processing the return under section 143(1) of the Act: "Assessment. 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:-- (a) the total income or loss shall be computed after making the following adjustments, namely: - (i) any arithmetical error in the return; (ii) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired 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; 7. 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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