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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 ..... 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 sale of immovable property situated in Noida for sale consideration of Rs. 1,58,43,750/- as against the circle rate of Rs. 1,94,95,000/- shown in the ITR. The sale consideration and the circle rate as mentioned above of the said property were duly disclosed in the ITR. Keeping in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 carefully considered. In the instant case, the appellant himself has admitted in the statement of facts that the property was sold below the guideline value. Hence, the appeal of the appellant is Dismissed." 4. The Ld. Authorized Representative (hereinafter, the 'AR') contended that once ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onjoint 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 ITA No. 1024/Del./2022 AY: 2019-20 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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