TMI Blog2012 (8) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... e sec. 50C itself is not applicable qua the facts of the instant case, there is no other provision in the Act which could govern the peculiar circumstances in hand. Therefore, we hold that the CIT (A) has not committed any irregularity in deleting the addition, made by the AO - Decided against the Revenue - ITA No. 6427/M/2010 - - - Dated:- 15-6-2012 - SHRI G.E. VEERABHADRAPPA, AND SHRI S.S. GODARA, JJ. Appellant by : Shri Pravin Varma Respondent by: Shri Prakash K Jotwani O R D E R PER S.S. GODARA, J.M: This revenue s appeal has been preferred against the order of Ld. CIT (A) dated 24.6.2010 for Assessment Year 2007-08. 2. From the grounds raised, the only substantive ground reads as under: The Ld. CIT (A) has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73.93 crores. In assessment order dated 31.12.2009, AO calculated long term capital gain as Rs. 70,57,31,976/-. 6. The assessee preferred appeal before the Ld. CIT (A) who has accepted its arguments by observing as under: I have duly considered the submissions of the AR and material on record. It is noticed that the property in question was transferred by an agreement on stamp paper of Rs. 6,00,000/- but was not registered. I find that the appellant entered into an agreement for sale of property in January, 2000 with Dhanvarsha Marking Pvt. Ltd. for carrying development of the property. The agreement was terminated for want of non-development and the Dhanvarsha Marking Pvt. Ltd. filed case in the High Court against the appellant. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 59 has held that legal fictions are only for a definite purpose and they are limited to the purpose for which they are created and should not be extended beyond the legitimate field. Similar view has been reiterated by the Hon ble Supreme Court in the case of CIT vs. Mother India Refrigeration Industries (P) Ltd. (1985) 155 ITR 711. The value of similar other property valued by stamp duty authority cannot be adopted under section 50C to substitute the sale value of the property under consideration. The application of section 55dA by which the Assessing Officer got the property valued and adopted the report of the DVO as the sole basis for making impugned addition was wholly invalid. The onus was on the revenue to establish that the sale c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee) containing fair market value of land as on 1.4.1981 (per approved valuer) @ Rs. 66.90 lacs and submitted that in the said computation, the assessee had declared full value of consideration as Rs. 3.45 crores. Thereafter, he has referred to findings in DVO report at page no.118 wherein, it has been stated that assessee could not be served notice due to non-availability of postal address and reasons for computation of plot s value as Rs. 73.93 crores. 7.1. In the light thereof, the learned DR has submitted AO had arrived at conclusion of under valuation by assessee in computing the long term capital loss in question after making enquiry. Per learned DR, in upsetting the findings of the AO, the Ld. CIT (A) has erred in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for valuation. 10. Therefore, learned AR has refereed to case law as well i.e. ITA No. 6320/M/2010 in the case of ACIT vs. Munson Textiles, ITAT Mumbai, order dated 3.2.2012; 122 TTJ (Lucknow) 515 Carlton Hotel (P) Ltd. vs. ACIT and Navaneet Kumar Thakkar vs. ITO (298 ITR 42) (Jd) wherein it has been held that in the absence of a registered instrument of transfer of property, sec. 50C of the Act cannot be invoked. The learned AR has also made us to peruse the agreement in question which is at page no. 122 to 143 of the paper book in this regard to clarify that the same is not a registered instrument of transfer. 11. Relying on the said material, learned AR has vehemently contended that since the agreement in hand is unregistered and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hotel etc. (supra) had rightly held that sec. 50C of the Act is not applicable in cases of unregistered agreements, operative part of the same reads as under: One of the relevant ingredients for invoking section 50C is that there is a payment of stamp duty in respect of transfer of capital asset being land or building or both. The event which precedes adoption of valuation done by stamp valuation authority is the registration of a sale recording transfer of capital asset for which there is a payment of stamp duty. Payment of stamp duty is required only when transfer of capital asset is registered under the Registration Act. If payment of stamp duty for the purposes of the transfer is not required, then there is no occasion to look into ..... X X X X Extracts X X X X X X X X Extracts X X X X
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