TMI Blog2015 (12) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,21,72,500/-. This section authorizes the AO to deem this amount as an actual sale consideration for the purpose of computing the long term capital gain. However, on a reference to the DVO, the value has been scaled down to ₹ 46,82,000/-. This drastic change in the value itself indicates that it is an estimated figure. The fiction created for computation of capital gain cannot be extended even for visiting the assessee with penalty under section 271(1)(c) of the Act. As far as the invocation of Explanation 1 and 3 attached to section 271(1)(c) is concerned, we find that the assessee has contended before the AO that she had never taxable income throughout her life. She was not well-conversant with the computation of capital gain a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in response to the notice, the assessee has filed her return of income on 5.9.2011 declaring total income of ₹ 82,810/-. The AO has passed assessment order on 16.12.2011 under section 143(3) r.w.s section 147 of the Act. The AO has confronted the assessee as to why value on which stamp duty was paid ought not to be considered as sale consideration. It appears that on a reference made under sub-section 2 of section 50C, the Valuation Officer has reported the value of the land at ₹ 46,82,000/-. The share of the assessee on the sale consideration comes to ₹ 4,68,200/-. On this amount, the AO has computed the long term capital gain of ₹ 4,56,219/-. He issued show cause notice under section 271(1)(c) for furnishing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, concealment of income, etc. (1) The Assessing Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)** ** ** (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation-1 to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT(Appeal); and, (b) where in respect of any fact, material to the computation of tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examine the facts and circumstance of the case. As far as computation of long term capital gain of ₹ 4,56,219/- is concerned, we find that the ld.AO has made this addition by invoking the provision contained in section 50C of the Income Tax Act. The section 50C is a deeming provision which empowers the AO to deem sale consideration equivalent to the amount on which the value has been adopted for the purpose of payment of stamp duty. To our mind, this fiction cannot be extended for visiting the assessee with penalty for concealment of income. It is pertinent to mention here that the stamp duty paid on a sum of ₹ 1,21,72,500/-. This section authorizes the AO to deem this amount as an actual sale consideration for the purpose of co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
