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2024 (1) TMI 1133 - AT - Income TaxCapital gain computation - reselling of asset - Stamp Duty Valuation - year of transfer - AO had received an information that assessee has sold an immovable property whose sale value did not match with the Stamp Duty Valuation vis- -vis shown by the assessee - addition made with the aid of Section 50C(1) HELD THAT - As per Section 50C and its first proviso if an assessee has received a consideration or such consideration has accrued to the assessee on sale of a capital assets/ building is less than the value adopted or assessed for the purpose of charging Stamp Duty on such transaction then full sale consideration would be deemed equal to the amount on which Stamp Duty has been charged. In this present case assessee has purchased a plot at Indirapuram Gaziabad and sale deed was executed in favour of the assessee. Later on assessee sold this plot for a consideration as received by the assessee through Bank Draft. The assessee has further executed Power of Attorney in favour of Shri Manoj Kumar Sharma who resold this plot on 18th November 2011 to one other. Therefore in the hands of the assessee the Stamp Duty Valuation ought to have been determined in the year 2000 and not 2011. Gaziabad Development Authority must have executed the Conveyance Deed in favour of the assessee more than the value determined by the Registering Authority for the purpose of Stamp Duty. Therefore a deeming sale consideration cannot be assumed in the hands of the assessee in A.Y. 2011. The proviso appended to Section 50C duly protects the assessee from considering the Stamp Duty value as full sale consideration in the hands of the assessee in 2011. Therefore both the authorities have erred in computing the alleged long-term capital gain in the hands of the assessee. We allow this ground and delete the addition made by AO. Decided in favour of assessee.
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