9911796707
TMI Blog2015 (6) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... aised multiple Grounds of Appeal, but essentially the grievance is against an addition of Rs. 42,79,000/- made by the Assessing Officer on account of long term capital gain. Briefly put, the facts are that the appellant is a company registered under the provisions of the Companies Act, 1956 and it owned a piece of land bearing Survey No.30/3, 31/1 & 2A admeasuring 52,527.04 sq.mts in village Vadgaonsheri, Tal. Haveli, Pune. The appellant company entered into a single joint venture agreement dated 18.12.2003 with M/s IT Citi Infopark Pvt. Ltd. with a desire of developing the property on the terms and conditions contained therein. The said agreement was registered with the Registering Authority on 19.12.2003. Further, the assessee also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be taken at Rs. 4,80,00,000/- as against Rs. 4,37,21,000/- adopted by the assessee. In the consequent assessment finalized u/s 143(3) r.w.s 147 of the Act, the consideration has been adopted at Rs. 4,80,00,000/- thereby leading to an addition of Rs. 42,79,000/- on account of enhanced long term capital gain. 4. The basis of such addition is the mention of Rs. 4,80,00,000/- as the consideration in Index No.II annexed to the single joint venture agreement dated 18.12.2003 while registering the same on 19.12.2003. In the Index No.II, the consideration has been stated to be Rs. 4,80,00,000/- whereas the value assessed by the registering authority for the purpose of stamp valuation of property is stated at Rs. 4,37,20,550/-. On this basis, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same was valued at Rs. 4,37,20,550/- by the registering authority for the purposes of stamp duty valuation. It was pointed out that though in-effect the stamp duty was paid with respect to the value of Rs. 4,80,00,000/-, so however, the same was not the consideration stated in the said agreement. In-fact, it was only in the addendum to the single joint venture agreement dated 10.5.2004 that the consideration had been mentioned which is with reference to the market value of the said property, i.e. at Rs. 4,37,20,550/- as assessed by the stamp valuation authority. The Ld. Counsel also explained that since stamp duty was to be incurred by other concern, the assessee did not object to the payment of higher stamp duty on the basis of value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for the purposes of stamp duty in respect of such transfer. Section 50C of the Act provides that where the consideration received or accruing as a result of transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, then the value so adopted or assessed or assessable shall, for the purposes of section 48 of the Act, be deemed to be the full value of consideration received or accruing as a result of such transfer. Quite clearly, shorn off other details, section 50C of the Act is triggered only in a situation where the consideration received or accruing as a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is received or accruing as a result of the transfer to the assessee is Rs. 4,37,20,550/- or Rs. 4,80,00,000/-. To our mind, considering the contents of the agreements and also the books of account of the AOP, copies of which have been placed on record, it is evident that the consideration accruing to the assessee as a result of such transfer is Rs. 4,37,20,550/- qua its impugned contribution to AOP by way of land. Even at this stage, the Revenue contends that invoking of section 50C of the Act is justified, inasmuch as stamp duty for the transfer envisaged in the agreement dated 19.12.2003 has been paid with respect to the value of Rs. 4,80,00,000/- as mentioned in the Index-II and, therefore the amount of Rs. 4,80,00,000/- is deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority for the purposes of stamp duty. 10. The controversy can also be looked at from other angle. Even if we were to go along with the Revenue to say that since the stamp duty has been paid with reference to the value of Rs. 4,80,00,000/- and therefore, the amount of Rs. 4,80,00,000/- should be taken as the value adopted or assessed or assessable by any authority of a State Government for the purpose of stamp duty contained in section 50C of the Act, even then section 50C is not applicable. In his connection, sub-section (2) of section 50C provides that where an assessee claims before an Assessing Officer that the value adopted or assessed or assessable by stamp valuation authority exceeds the fair market value of the property as on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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