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Prashant Arjunrao Kolhe Versus DCIT-26 (2) Mumbai and Vica-Versa

Capital gain addition - Addition of suppression of sale proceeds of flat - Held that- Had there been the case where sale price shown was lower than the stamp duty valuation, then the sale price would have been deemed to be the value assessed under the stamp duty valuation in accordance with the section 50C. However, this is not the case here as the assessee’s sale prices are evidenced by “sale agreements” placed in the paper book and is also higher than the FMV assessed. - Thus, without any .....

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No. : 4810/Mum/2014, ITA No. :5155/Mum/2015 - Dated:- 26-9-2016 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI MANOJ K AGGARWAL, ACCOUNTANT MEMBER For The Assessee : Shri Ajay Thakare, Shri A C Bohra For The Revenue : Shri C S Sharma ORDER PER AMIT SHUKLA, J.M.: The aforesaid cross appeals has been filed by the assessee as well as by the revenue against impugned order dated 16.05.2014, passed by Ld. CIT(Appeals)-20, Mumbai for the quantum of assessment passed under section 143(3) for the assessmen .....

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as higher as compared to stamp duty valuation and there was no reason to disbelieve the actual consideration received and resort to other sale instance in arriving at erroneous conclusion of suppression of sales. 1(c) On the facts and circumstances of the case the condition and location of capital asset sold in question was vastly different as compared to the capital asset considered for the purpose of sale instance . 2. The brief facts qua the issue involved are that, the assessee is an individ .....

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ficer observed that, the first two flats which were sold on 24.06.2009 to one party was sold at much higher figure, whereas, the other two flats sold after 20 days were sold at a lesser prices. If the areas of both the flats are by and large same, then how the assessee has sold the other two flats at almost 20% of lesser price than the first transaction of sale of two flats. He further noted that, the assessee could not give proper satisfactory reply for the reasons of sale of two flats at a low .....

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: Expenses on transfer ₹ 72,750 ₹ 72,27,250 Less: Total cost of acquisition as given by the assessee ₹ 69,23,012 Short Term Capital Gain ₹ 3,04,238 3. The Ld. CIT(A), upheld the action of the Assessing Officer on the ground that, no convincing explanation has been filed by the assessee for selling second transaction of the flats at a lower price than the earlier transaction of the two flats. 4. Before us, the Ld. Counsel for the assessee, drew our attention to the Sale De .....

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e were that, these two flats lacked location/view advantage and also the assessee wanted to get rid of these flats from the said building as early as possible and, therefore, the sale was made at a comparable lower price. In any case, he submitted that, once the flats have been sold more than the purchase consideration and at higher FMV assessed under the stamp duty valuation, then without there being any contrary material on record, or enquiry by the Assessing Officer, the sale consideration ca .....

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given in the impugned orders as well as material placed on record. The assessee had purchased four flats in one building from M/s Nirmal Life Styles. The date of agreement for purchase, purchase consideration, date of sale, sale consideration and value as per the Stamp valuation of the four flats are as under:- S No. Flat No./ Area Date of Purchase Purchase Price in Rs. As Per Agreement Date of Sale Sale price in Rs. as per Agreement FMV as per Stamp Duty Valuation (Rs.) 1 305 441 Sq. ft. 17.4. .....

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ns of section 50C it cannot be held that, assessee has suppressed the sales. If the sale price of two flats sold in the second transaction was comparatively lower than the sale price of the two flats in the first transaction, then same should have been a starting point for conducting the basic enquiry by the Assessing Officer to ascertain the sale price and to controvert the sale price shown by the assessee. At least some material or information should have been brought on record by the AO to re .....

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reason to uphold the reasoning and view taken by the authorities below that sale of the two flats sold subsequently should be taken at the same price on which two flats were sold 20 days earlier. Thus, the addition made by the Assessing Officer on account of short-term-capital-gain of ₹ 3,04,238/- is deleted and sale consideration shown by the assessee as per the sale agreement of the two flats, viz. flat no. 303 and 304 is to be taken as such. Accordingly, ground raised by the assessee is .....

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