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2022 (11) TMI 1368 - ITAT DELHIAddition made enhancement of capital gain u/s 50C - adjustment u/s 143(1) - as argued addition made u/s 50C(1) of the Act can not fall within the ambit of adjustment provided u/s 143(1)(a) - HELD THAT:- Sub-section (1) to section 50C cannot be considered in isolation. By making an adjustment of the nature contemplated under subsection (1) to section 50C, that too, by CPC, the Department takes away a valuable statutory right given to the assessee to object to the value determined by stamp valuation authority. Therefore, such type of adjustment, in my considered opinion, cannot be made u/s 143(1)(a) of the Act. This is so because, at the stage of processing of return u/s 143(1)(a), if such an adjustment is made, the assessee does not get an opportunity to object, as per section 50C(2) of the Act. More so, when conditions of the 1st and 2nd proviso to section 143(1)(a) are not complied. Therefore, hold that the addition made by CPC under section 50C(1) of the Act by way of adjustment u/s 143(1)(a)(ii) is unsustainable. Accordingly, delete the addition. Disallowance of benefit of brought forward losses of earlier years - assessee’s claim of set off and carry forward of loss was rejected by Commissioner (Appeals), since, he did not find merit in assessee’s ground contesting the addition made u/s 50C(1) - HELD THAT:- While deciding ground No. 1 and 2 of assessee’s appeal I have deleted the addition made under section 50C(1) of the Act. Therefore, the reasoning of learned Commissioner (Appeals) in disallowing assessee’s claim of loss has become redundant. Hence, Assessing Officer is directed to allow assessee’s claim of loss in accordance with law.
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