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2019 (4) TMI 347 - AT - Income TaxDistress sale - sale of property under pressure - adoption of stamp value u/s 50C as sales consideration for Capital gain computation - assessee is a daughter of a retired army officer - fraudulent registration of same property to another persons who has no right or title over the property - harassment by Revenue and Registration Department of the State Government - HELD THAT:- When the document was executed and registered on 11.06.1997 in favour of the assessee, who is none other than a daughter of an army officer, the very same Sub Registrar has registered another document said to be executed by the very same vendor on 20.07.1999 in favour of Shri I.A.J. Balan, Shri I.P. Andrew Raj, Shri I.S.J. Rozario, Shri I. Francis Jeyaraj and Shri I. Jerome Michael Pushpanathan. Tahsildar is the competent authority for grant of patta. When it was brought to his notice about the fraudulent issue of patta in favour of the third party, the Tahsildar ought to have cancelled the patta immediately and a patta should have been granted in favour of the assessee. Unfortunately, the Tahsildar has not acted on the petition received even from an army officer. Even though a report was said to be prepared, the Tahsildar failed to forward the same to the higher authorities. Circumstances under which the sale deed executed by the assessee through her father Col. V.N. Lingappan is a distress sale. When the property was sold under pressure and this Tribunal is of the considered opinion that adopting guideline value under Section 50C is not called for. Under normal circumstances, this Tribunal would have remitted back the matter to the file of the Assessing Officer for referring the matter to the valuation officer. In this case, we are not doing so since the Assessing Officer himself accepted that the property was sold under pressure. This Tribunal is of the considered opinion that remitting back the matter to the file of the Assessing Officer for the purpose of making reference to the valuation officer would tantamount not only harassing the assessee further but also rubbing the salt on the would again and again. This Tribunal is of opinion that the assessee executed the sale deed, the apparent sale consideration disclosed in the sale deed has to be considered as market value and the same has to be adopted for the purpose of computing capital gain. Hence, this Tribunal is unable to uphold the orders of both the authorities below. Accordingly, orders of both the authorities below are set aside and the addition made by the Assessing Officer is deleted. - Decided in favour of assessee
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