TMI Blog2016 (3) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... isclosed investment in the hands of the transferee. It is also a point to mention, that Section 50C does not authorize addition with reference to the stamp value as an amount paid by the purchaser, so as to require him to explain the source thereof. Section 50C has a limited operation for assessment of the vendor and not buyer. Therefore, the reliance of the Assessing Officer on the deeming provisions of section 50C for his inference that the property was purchased for a consideration which is much lower than the market value is not justified when the purchase transactions are recorded on the sale deed which was executed before the Sub-Registrar and the identity of the vendor u/s 69 of the I.T. Act, 1961. The Hon’ble High Court of Gujar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) has erred in law and on facts in deleting the addition of ₹ 5,00,000/- made by the Assessing Officer u/s 69 of the I.T. Act on account of unexplained cash payment. 3. The facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in accepting the plea of the assessee that payment of ₹ 5,00,000/- was made on 30.08.2008 without appreciating the fact that both the parties had admitted before the registrar that payment of ₹ 5,00,000/- in cash had been made by the assessee before the date of registry and this very fact was also mentioned in the sale deed dated 26.08.2008. 4. The order of the ld. CIT(A) is erroneous and is not tenable on facts and in law. 5. The appellant craves l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,00,000/- plus stamp duty of ₹ 3,36,500/-) on being asked about the sources of such an investment by the Assessing Officer, the assessee explained the sources as under: a. Cash ₹ 5,00,000/- b. PO dt. 23.8.08 drawn on Andhra Bank ₹ 13,00,000/- c. Housing loan raised from Andhra Bank Housing Finance ₹ 7,00,000/- d. Out of cash in hand of ₹ 3,40,000/- from prop. business ₹ 3,36,500/- 2.2 Regarding the source of ₹ 5,00,000/-, vide letter dt. 24/11/2011, the assessee submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted the addition and held that the ld. AO was not justified in drawing up an inference that the property was purchased for a consideration which is much lower than the market value, when the purchase transaction are recorded on the sale deed which was executed before the sub-registrar and the identity of the vendor is disclosed. The ld.CIT(A) also held that the ld. AO was not justified in concluding the investment as unexplained u/s 69 of the Income Tax Act. 5. We have gone through the submissions and the paper book filed by the assessee. We have also heard the rival arguments by both the parties. 5.1. We further observe that at page 55 of the paper book, a certificate has been issued by the seller in respect of the cash payment r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration and the value adopted for the purpose of the stamp duty which was deleated by the Tribunal has been upheald. 5.4. On perusal of the assessment order, we find that the ld. AO relied on the deeming provision of section 50C for drawing an inference that the property in question was transacted at the market value and the consideration received by the seller was based on such market value which was not shown in the sale deed for transfer of this property. 5.6. Section 50C is a deeming provision for a limited purpose for computation of income from capital gains in the hands of the transferor. Provisions of section 50C is applicable only for computation of capital gains in real estate transactions in respect to seller only and not fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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