TMI Blog2015 (12) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The addition has been made by invoking deeming provisions of section 50C. In our considered view in assessment proceedings the provisions u/s. 50C can be invoked for making addition, however penalty cannot be levied on the basis of such deeming provisions. The Department cannot presume that there is a concealment or inaccurate particulars are furnished. There must be independent finding. Once, the assessee has furnished the explanation, the onus shifts on the Revenue to prove that the explanation furnished by assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (50% share). Thus, the Long Term Capital Gain arising to the assessee from the sale of land was computed at ₹ 1,92,311/-. The assessee purchased a residential flat for ₹ 6,48,020/- on 22-11-2007 and claimed exemption u/s. 54F against the Long Term Capital Gain from the sale of his share in land at Igatpuri. In scrutiny assessment proceedings, the Assessing Officer invoked the provisions of section 50C and determined the total sale value of land at Igatpuri at ₹ 21,39,000/-, 50% share of the assessee being ₹ 10,69,500/-. The assessee furnished valuation certificate obtained from the office of Dy. Registrar, Igatpuri dated 04-12-2010 (based on stamp valuation) in respect of land determining the value at ₹ 18,94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted 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 ₹ 18,94,000/-, whereas, the assessee had disclosed the sale price of the land at ₹ 4,80,000/-. The Assessing Officer rightly invoked the provisions of section 50C for determining Long Term Capital Gain. The assessee accepted the same and paid ₹ 60,900/- as tax along with the interest u/s. 234B and 234D of the Act. Since, the assessee had accepted the addition and has paid tax and interest thereon, the penalty has been rightly levied. The ld. DR prayed for dismissing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputed 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. The addition has been made by invoking deeming provisions of section 50C. In our considered view in assessment proceedings the provisions u/s. 50C can be invoked for making addition, however penalty cannot be levied on the basis of such deeming provisions. The Department cannot presume that there is a concealment or inaccurate particulars are furnished. There must be independent finding. Once, the assessee has furnished the explanation, the onus shif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax 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 the assessee has failed to furnish the relevant record as called by the AO to disclose the primary facts. The assessee has furnished all the relevant facts, documents/material including the sale agreement and the AO has not doubted the genuineness and validity of the documents produced before him and the sale consideration received by the assessee. Under these facts and circumstances, it cannot be said that the assessee has not furnished cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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