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2014 (1) TMI 1625 - ITAT DELHIValuation of property u/s 50C - determination of capital gain on sale of land and building -CIT(A) has taken in to account circle rate which is ₹ 24,00,000/- and not the rate adopted by the parties at ₹ 64,10,000/- - Held that:- Section 50C is a deeming provision and ostensibly involve creation of an additional tax liability on the assessee and, therefore, notwithstanding the presence of the expression ‘may’ in section 50C(2)(a), the AO in this case ought to have referred the matter to the valuation officer for ascertaining the value of the capital asset in question. The order of the Commissioner (Appeals) was thus held to be set aside and the AO was directed to adopt the course mentioned in section 50C(2)(a) and thereafter proceed to determine capital gain on sale of land and building. Respectfully following this decision of K.K. Nag Ltd. vs. ACIT [2012 (6) TMI 184 - ITAT PUNE ] on an identical issue under almost similar facts, we while setting aside the orders of the authorities below on the issue direct the AO to adopt the course mentioned in section 50C(2)(a) and thereafter, proceed to determine capital gain on sale of the properties in question after affording opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes. Penalty u/s 271(1)(C) - CIT(A) deleted the penalty - Held that:- Valuation of property for stamp duty purposes was rebuttable issue hence in order to prove concealment or furnishing of inaccurate particulars, AO had to establish that “on money” had changed hands or that substantial evidence / material was available to prove that the assessee had filed inaccurate particulars of income. It is an established proposition of law that before invocation of penal provisions laid down u/s 271(1)(c) of the Act, the AO had to establish beyond doubt that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee while claiming the turned down relief resulting in the above addition on the basis of which penal proceedings have been initiated. Also because the addition on which penalty in question has been imposed has been set aside in the above appeal to the file of the AO for fresh consideration in view of the provisions laid down u/s 50C of the Act, the present penalty does not stand. - Decided against revenue.
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