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2019 (2) TMI 356 - AT - Income TaxPenalty levied u/s 271(1)(c) - addition to capital gain invoking section 50C - difference between market value of the property as per the valuation for stamp duty and the sale consideration - Held that:- The assessee had sold property and derived income from capital gain. As there was a difference between market value of the property as per the valuation for stamp duty and the sale consideration, section 50C was attracted and consequently there was additional capital gain tax of ₹ 1,01,191/- was levied. We find that the assessee has sold the property i.e. land situated in Village Gourangapur, P.S. Bhadreshwar on 06.04.2010 for ₹ 9,00,000/-. The market value as per ADSR for the above property was ₹ 17,81,815/-. AO records that the required report from the valuation cell is not received and that, as the assessment is getting barred by limitation, the assessment is completed. The valuation as per ADSR as obtained by the Valuation Authority, Chandannagar, Hooghly was not referred to the valuation cell. Under these circumstances, we are of the considered opinion that no penalty can be levied u/s 271(1)(c). The assessee has furnished a reasonable explanation. AO has not based the addition after obtaining valuation report from the valuation officer as required by law. In the result, the penalty levied u/s 271(1)(c) of the Act is cancelled. - Decided in favour of assessee.
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