Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (8) TMI 669 - ITAT, DELHIAddition - Capital gain - Agricultural land or capital assets - Assessment u/s 143(3) - Delivery of notice u/s 143(2) - service of notice - The Assessing Officer is expected only to serve notice on the address given in the return of income as the assessment proceedings, if initiated, are to be initiated only at the address given in the return of income unless it is shown that any application for change of address later on was filed. There is no such application filed by the assessee intimating that there was any change of address at the relevant time. - Notice were delivered at address mentioned in the ITR were in time through returned - Assessment u/s 143(3) valid. Sale and purchase of plot - CIT(A) has deleted the addition of Rs. 15,50,000 on the ground that the said transaction was in the nature of purchase and transfer of capital asset by Shri K.S. Gupta and not by the assessee. - Held that: - The transaction was owned by the assessee which was entered into by her through her power of attorney holder. The payments were made by the assessee and the resultant profit was also declared by her in her return of income. The questions which were to be decided by ld. CIT(A) were whether the said income which has been shown by the assessee of a sum of Rs. 50,000 was assessable as business income or it was liable for tax under the head ‘Capital gain’. Secondly, whether the provisions of section 50C were applicable or not? ld. CIT(A) has also held that provisions of section 50C are not applicable on the assessee as the name of the assessee did not appear in the revenue record. Applicability of section 50C - Held that: - if the assessee claims that the value adopted for stamp valuation purposes is in excess of fair market value of the property, then, he may request to the Assessing Officer for the valuation of the said land from the valuation officer and the procedure laid down in section 50C is required to be adopted. In our considered opinion, the case of the assessee falls within the purview of section 50C as the consideration received by the assessee as a result of transfer of the said land is less than the value adopted or assessed by the stamp valuation authority. Business income or short term capital gain - held that: - it has never been shown that the sale and purchase of the property carried on by the assessee was in the nature of business. Therefore, we hold that the said transaction is liable for capital gain.
|