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TMI Blog2015 (12) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 2008-09 on 28-09-2008 declaring taxable income of Rs. 1,03,290/-. The assessee sold land at Igatpuri on 18-04-2007. The assessee had 50% share in the said land. The remaining 50% share was owned by Poonamchand Brijlal Rawat. The said land was purportedly sold for a consideration of Rs. 4,80,000/- (50% share of assessee Rs. 2,40,000/-). The land was allegedly purchased (50% share) for Rs. 15,752/- on 21.12.1990. The indexed cost of acquisition of land at the time of sale was determined at Rs. 47,689/- (50% share). Thus, the Long Term Capital Gain arising to the assessee from the sale of land was computed at Rs. 1,92,311/-. The assessee purchased a residential flat for Rs. 6,48,020/- on 22-11-2007 and claimed exemption u/s. 54F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In spite of repeated notices neither the assessee nor his authorized representative has appeared before us. It seems that the assessee is not keen to defend his appeal either in person or through any of his Authorized Representatives. We are constrained to decide the appeal on the basis of materials available on record. 4. Shri Santosh Kumar representing the Department vehemently supported the order of Commissioner of Income Tax (Appeals) in confirming the penalty. The ld. DR submitted that the assessee had furnished inaccurate particulars with respect to sale of property at Igatpuri. The Assessing Officer during assessment proceedings had furnished a valuation certificate from the Dy. Registrar, Igatpuri showing the value of land at Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time lag of 3 years. During these 3 years, the value of property has appreciated substantially. 6. We observe that the addition has been made by invoking the provisions of section 50C. It is a well settled law that penalty cannot be levied on the additions based on assumptions, estimations and by invoking deeming provisions. It is an undisputed fact that the assessee has disclosed the sale transaction of land in his return of income and has even computed Long Term Capital Gain thereon. The assessee had computed Long Term Capital Gain on the basis of sale consideration stated in sale deed, whereas, the Assessing Officer has determined Long Term Capital Gain on the basis of valuation certificate submitted by the assessee for the year 2010. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 9,00,824/- being difference between the sale consideration as per sale agreement and the valuation made by the Stamp Valuation Authority. Thus, the addition has been made by the AO by applying the provisions of section 50C of the Act. It is evident from the assessment order that the AO has not questioned the actual consideration received by the assessee but the addition is made purely on the basis of deeming provisions of the Income Tax Act, 1961. The AO has not given any finding that the actual sale consideration is more than the sale consideration admitted and mentioned in the sale agreement. Thus it does not amount to concealment of income or furnishing inaccurate particulars of income. It is also not the case of the revenue that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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