TMI Blog2013 (12) TMI 605X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 29-11-2013 - Sanjiv Khanna And Sanjeev Sachdeva,JJ. For the Petitioner : Mr. Rohit Madan, Sr. Standing Counsel. ORDER This appeal by the Revenue has to be dismissed in view of the judgment of Delhi High Court in Commissioner of Income Tax, Delhi-II Vs. Khoobsurat Resorts Pvt. Ltd. (2012) 10 AD Delhi 87 wherein it has been held that the circle rate as stipulated under Section 50C can become the starting point of an inquiry but cannot be the sole concluding reason to hold that there was understatement of sale consideration. In the case of Khoobsurat Resorts Pvt. Ltd. (supra) the appeal filed by the Revenue was dismissed on the ground that the Assessing Officer had failed to conduct necessary inquiries and rely up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2) is immediately attracted, subject of course to the fulfilment of the condition of 15% or more difference, and the revenue is then not required to show what is the precise extent of the understatement or in other words, what is the consideration actually received by the assessee. That would in most cases be difficult, if not impossible, to show and hence sub-section (2) relieves the revenue of all burden of proof regarding the extent of understatement or concealment and provides a statutory measure of the consideration received in respect of the transfer. It does not create any fictional receipt. It does not deem as receipt something which is not in fact received. It merely provides a statutory best judgment assessment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the transfer. 3. Thereafter, in Khoobsurat Resorts Pvt. Ltd., it was held as under:- 14. This Court is of the opinion that the express provision of Section 50-C enabling the revenue to treat the value declared by an assessee for payment of stamp duty, ipso facto, cannot be a legitimate ground for concluding that there was undervaluation, in the acquisition of immovable property. If Parliamentary intention was to enable such a finding, a provision akin to Section 50-C would have been included in the statute book, to assess income on the basis of a similar fiction in the case of the assessee who acquires such an asset. No doubt, the declaration of a higher cost for acquisition for stamp duty might be the starting point for an inquiry i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Valuation Officer is more than the value adopted or assessed by the stamp duty authority, the Assessing Officer shall adopt the market value as determined by the Stamp duty authority. Thus, a complete foolproof safeguard has been given to the assessee to establish before the authorities concerned the real value. Thus, what is stated in Section 50C as a real value cannot be regarded as a notional or artificial value and such real value is determinable only after hearing the assessee as per the statutory provisions stated supra. There is no indication either in the provisions of Section 50C of Income- tax Act or Section 47A of the Stamp Act or rules made thereunder about the adoption of the guideline value. Hence, the contention that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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