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2016 (9) TMI 13 - ITAT JAIPUR

2016 (9) TMI 13 - ITAT JAIPUR - TMI - Penalty u/s 271(1)(c) - addition u/s 50C on the amount of difference between sale consideration and valuation made by stamp duty authority - Reopening of assessment - Held that:- Coordinate Benches in various decisions starting from Renu Hingorani [2010 (12) TMI 795 - ITAT MUMBAI ] have held that where there is no evidence of receipt of consideration over and above declared by the assessee and the assessment is either completed u/s 143(3) or even u/s 148 bas .....

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The Assessee : Shri G.G. Mundra (C.A.) For The Revenue : Shri G.R. Pareek (JCIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the Revenue against the order of ld. CIT(A)-II, Jaipur dated 30.08.2013 wherein the Revenue has taken the following ground of appeal: Whether on the facts and in circumstances of the case and in law the ld. CIT(A) has erred in deleting the penalty of ₹ 28,00,670/- without appreciating the fact that the assessee voluntarily did not disclosed acc .....

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essment u/s 143(3) of the Act was thereafter completed at returned income of ₹ 64,03,650/-. Subsequently, the ld. AO received information in respect to one of the pieces of land that stamp duty authority valued the property at ₹ 65,20,000/- as against the declared sale consideration of ₹ 23,04,000/- as per sale deed. The ld. AO based on this information issued notice u/s 148 which assessee complied and in the return filed in response to notice u/s 148 the assessee declared sale .....

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sed sale consideration of ₹ 83,46,000/- (Rs. 42,16,000 + 41,30,000) in respect of impunged two pieces of land and penalty proceedings u/s 271(1)(c) for concealment of income was initiated. After considering the submissions of the appellant, the AO held that the appellant has not adopted the sale consideration of the impunged properties as taken by the registration authorities, the higher value was informed on subsequent transaction of the property from another AO and it doesn t matter the .....

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ration and valuation made by stamp duty authority. AOI levied penalty for concealment of income on this addition. As against this, appellant relied upon several decisions in his submission quoted earlier including decision of Bombay ITAT on the issue in the case of Renu Hingorani. Relevant extract of the said order is quoted below: We find that the AO had made addition of ₹ 9,00,824/- being difference between the sale consideration as per the sale agreement and the valuation made by the st .....

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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 ci .....

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licable to the facts of the appellant s case, penalty levied by the AO is deleted. 2.2 During the course of hearing, the ld. AR of the assessee submitted that assessee at the time of filing the original return was not knowing the implications of provisions of section 50C of IT Act and therefore, in the original return, he declared actual sale consideration(s) which he received from said transfers. In course of original assessment completed u/s 143(3) all the documents relating to sale of propert .....

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ation as per sale deed in respect to other piece of land while computing short term capital gain. The explanation submitted by the assessee explaining sale transactions and valuation by stamp authorities was thus correct and bonafide. 2.3 Ld AR further submitted that differential income is only because of deeming provision of section 50C and the AO has not established that such differential consideration is actually received by the assessee or the assessee has concealed the income or furnished i .....

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aipur Bench) • Anita Beniwal vs. ITO Alwar ITA No.743/JP/2012 dt 5.06.2015 (Jaipur Bench) • Sarwan Kumar vs. ITO ITA No. 4379/Del/2009 dt 28.01.2014 (Delhi Bench) • Chimanlal Mani lal Patel vs. Ad. CIT ITA No. 508/Ahmd/2010 dated 22.06.2012 • ACIT vs. Mrs. N. Meenakshi ITA No. 508/Mad/2008 dated 13.02.2009 (Chennai Bench) The appeal order of ld. CIT(A) is by following various judgements of ITAT and High court and the appeal order is detailed and reasoned which deserves to be .....

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ideration and the DLC rates and adopted the difference u/s 50C. However, in this case, once proceedings u/s 143(3) was completed and later on the AO initiated proceedings u/s 147 for escapement of income on account of wrong computation of income furnished by the assessee by ignoring the provisions of section 50C. In response to the notice u/s 148, the assessee filed return and capital gain was computed as per provisions of section 50C. It means the assessee was aware of the provisions of section .....

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essing officer raised specific queries regarding sale of the properties and application of section 50C and all the documents relating to sale and purchase of properties were duly submitted to the Assessing officer and thereafter the Assessing officer accepted the returned income. This shows that the assessee has furnished all the relevant documents and the Assessing officer has relied upon the same documents furnished during the original proceedings while completing the assessment and reassessme .....

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e assessee has received any sale consideration over and above what has been disclosed in the sale deeds and reported in the original return of income. There is no adverse finding by the Assessing officer to this effect and it thus become clear that the assessee has received actual sale consideration of ₹ 23,04,000 and ₹ 75,00,000 in respect of the two impunged properties respectively and which have been duly reported in the original return of income. 2.6 Subsequently, based on inform .....

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duty authorities as per section 50C of the Act. In response, the assessee submitted its return of income disclosing sale consideration as per stamp duty authorities in respect of both of the properties even though the notice was specific to one of the properties which shows bonafide on the part of the assessee. 2.7 Here we refer to the decision of the Hon ble Calcutta High Court in case of Madan Theatres P Ltd (supra) where the Hon ble Calcutta High Court refused to admit the appeal of the Reve .....

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