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Shri A.N. Sanjay Versus The Assistant Commissioner of Income Tax

2016 (6) TMI 369 - ITAT BANGALORE

Exemption u/s. 54EC - error of valuation being adopted by the AO u/s 50C - as per assessee AO instead of making a reference to the DVO, the AO himself has adopted the value declared in the Sale Deeds without looking into the assessee contentions with regard to lesser receipt of sale consideration - Held that:- We find that the contentions of the assessee with regard to lesser receipt of sale consideration were not examined by the revenue authorities. Therefore, in the interest of justice, we set .....

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il Kumar, CA For the Respondent : Shri Sunil Kumar Agarwala, Jt. CIT(DR) ORDER Per Sunil Kumar Yadav, Judicial Member This appeal is preferred by the assessee against the order dated 27.07.2015 of the CIT(Appeals)-5, Bengaluru inter alia on the following grounds:- 1. The order of the Commissioner of Income Tax (A) so far as is against the appellant is against law, facts of the case and weight of evidence. 2. The learned Appellate Officer has erred in confirming with the AO the consideration ment .....

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the ld. counsel for the assessee has invited our attention to the assessment order that the AO has noted from the ITS details that assessee has sold the immovable property for ₹ 35 lakhs during the financial year relevant to impugned assessment year and assessee was asked to explain the transaction. In response thereto, it was submitted that assessee jointly owned (1/5th share) and sold immovable property in two parts to different parties for ₹ 81,13,000. The AO has noted from the de .....

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d before the CIT(Appeals). 3. The assessee has filed written submissions before the CIT(Appeals) explaining the receipt of lesser amount. It was also contended that though assessee has raised a dispute with regard to actual sale consideration adopted by the AO, but the AO has not made any reference to DVO to assess the fair market value of the property. Relying upon the assessment order, the CIT(A) confirmed the addition after granting part relief. 4. Now the assessee is before us with the submi .....

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cordance with law in light of the assessee s contentions. 5. The ld. DR simply placed reliance on the order of the CIT(Appeals). 6. Having carefully examined the order of lower authorities, we find that undisputedly the assessee raised an objection to the valuation being adopted by the AO. Instead of making a reference to the DVO, the AO himself has adopted the value declared in the Sale Deeds without looking into the assessee contentions with regard to lesser receipt of sale consideration. The .....

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nd appellant received ₹ 6 lakhs and invested the same in Nabard Bonds and claimed exemption u/s 54EC. (b) The immovable property sold was under litigation. The property was agreed to be sold to one Sri L Mallikarjun (hereinafter referred as agreement holder) and the agreement holder had filed two suits under specific performance clause. The suites were numbered as O.S. No.540911994 and O.S. No.51711996 and cases were being dragged on past many years. The agreement holder had no funds to ma .....

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25 lakhs. The property was sold for ₹ 45 lakh making agreement holder as one of the Vendors. (c) The Karnataka Government has conferred under Rule 7 of the Karnataka Stamp (constitution committee for Estimation of Properties) Rules, 1992 the right for determination of the estimated market value of the immovable properties coming under the jurisdiction of each sub Registry Offices of the State. These are called "Guide Line Value" and Sub Registrar is bound to follow "the sam .....

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Line Value" at ₹ 66.50 lacs + ₹ 14.631akhs = 81.13 lacs. This is the value taken by AO u/s 50C of the I T Act. (d) The appellant has submitted before the A.O that value determined for stamp duty by the registering authority is more than the fair market value on the date of transfer and same must not be taken into consideration for the purpose of determination of sale price. The property was agreed to be sold to the present buyers when the dispute between the owners and agreemen .....

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