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TMI Blog2013 (12) TMI 605X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 upon any other objective facts and circumstances. 2. In Khoobsurat Resorts Pvt. Ltd. (supra) reference was made to the decision of the Supreme Court in K.P. Varghese Vs. Income-tax Officer [1981] 131 ITR 597 (SC) wherein in the context of amendment to Section 52 and insertion of Sub-section (2) it was held as under:- "This condition of 15% or more difference is merely intended to be a safeguard against the undue hardship which would be occasioned to the assessee if the inflexible rule of thumb enacted in subsection (2) were applied in marginal cases and it has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer. 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 the consideration actually received by the assessee and brings to tax capital gains on the footing that the fair market value of the capital asset represents the actual consideration received by the assessee as against the consideration untruly declared or disclosed by him. This approach in the construction of sub-section (2) falls in line with the scheme of the provisions relating to tax on capital gains. It may be noted that section"52"is not a charging section but is a computation section. It has to be read along with section"48"which provides the mode of computati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 in that regard; that inquiry might extend to analyzing sale or transfer deeds executed in respect of similar or neighbouring properties, contemporaneously at the time of the transaction. Yet, the finding cannot start and conclude with the fact that such stamp duty value or basis is higher than the consideration mentioned in the deed. The compulsion for such higher value, is the mandate of the Stamp Act, and provisions which levy stamp duty at pre- determined or notified dates. In the present case, the revenue did not rely on any objective fact or circumstances; conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the Section"50C"is arbitrary and violative of Article"14"cannot be accepted." 5. In the present case, the first appellate authority and the tribunal have referred to the material produced by the assessee before the Assessing Officer, which included other contemporaneous sale deeds, copy of valuation certificate issued by the registered valuer etc. The said evidence/material was rejected by the Assessing Officer observing that "the value determined by the government authorities is more acceptable than the value determined by the registered valuer". We note that that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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