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2016 (9) TMI 1568 - AT - Income TaxReopening of assessment u/s 147 - Capital gain computation - reference to the provisions of Section 50C - HELD THAT:- Section 50C(1) specifically provides that where the consideration received qua transfer of land is less than the value adopted by the Stamp Valuation Authority, the value so adopted shall, for the purposes of Section 48, be deemed to be the full value of the consideration received as a result of the transfer. Section 48 of the Act provides the mode of computation of capital gains. A conjoint reading of Sections 50C and 48 of the Act shows that the deeming provisions of Section 50C are only for such computation. That being so, as rightly contended, the valuation adopted by the Stamp Valuation Authority cannot, by itself, be made the basis for reopening the concluded assessment. A mere adoption of higher value of the property by the Stamp Valuation Authority cannot lead to a formation of belief of escapement of income, particularly when the value so adopted is adopted for stamp duty purposes only. It is nowhere the case of the department that the AO had brought on record any tangible material whatsoever to suggest escapement of income, which could have, besides the Inspector’s report, led to the formation of belief of escapement of income. It is trite, as also considered in the case of ‘Income Tax Officer Vs. Shiv Shakti Build Home (P) Ltd.’ [2011 (2) TMI 760 - ITAT, JODHPUR] that there has to be a nexus between the formation of the belief and the alleged escapement of income. In the absence of any positive material brought on the record by the Assessing Officer to suggest escapement of income, no such nexus exists herein. - Decided in favour of assessee.
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