Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1827 - AT - Income TaxLTCG on the sale of the property - Applicability of second proviso of Sec. 50C(1) - as submitted by the assessee that as an ‘agreement to sell’ was executed in respect of the property under consideration, therefore, the sale value was to be fixed as per the value therein taken and not as per that adopted by the subregistrar for the purpose of payment of stamp duty - HELD THAT:- As borne from the records that the assessee had claimed before the A.O that the value adopted by the stamp valuation authority exceeded the fair market value of the property under consideration. However, we find that the objection raised by the assessee to the proposed adoption of the circle value/segment rate by the A.O for the purpose of computing the LTCG on the sale of the property was however bypassed by the A.O, who reworked the LTCG by adopting the circle value/segment rate as the deemed ‘sale consideration’. When the A.O despite specific objection raised by the assessee that the value adopted by the stamp valuation authority exceeded the fair market value of the property under consideration, had however failed to refer the matter to the valuation officer for ascertaining the same, therefore, the reworking of the LTCG by him not being in conformity with the mandate of law cannot be accepted. We thus are of a strong conviction that as the very mandate of law prescribed under the statute had whimsically been bypassed by the A.O, therefore, the consequential addition of ₹ 72,00,000/- made by him on the basis of the impugned reworking of the capital gains cannot be sustained, and deserves to be deleted. We set aside the order of the learned CIT(A) and delete the addition made - Decided in favour of assessee.
|