TMI Blog2017 (1) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of section 50C. Further more even if the same is not treated as business asset, it is incumbent upon the AO to refer the matter to the valuation cell if the assessee objects it. Further more the assessee’s plea of submission of books of accounts has also not been entertained. We find that the Revenue having held that in earlier years the assessee was engaged in the business of purchase and sale of land cannot make an about-turn and hold that the assessee was not engaged into the same merely because the return of income has been filed in Form ITR-2. Hence on this anvil interest of justice would be served if the matter is remitted to the file of the AO. The AO is directed to decide afresh after taking into account the result o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y referred as Property No.1 for a consideration of ₹ 34 lakhs. The value as per stamp duty valuation was ₹ 90,56,000/-. The AO proceeded to adopt the provisions of section 50C. It was sought to be explained by the appellant that he had purchased the above property with an idea of setting up of hostel but since he did not have liquidity he decided to sell the said property almost immediately and that earning profit was the main motive behind the transaction. The AO, however, disregarded the explanation of the appellant and brought the said amount of ₹ 54,73,140/- to tax as short term capital gain. 3. The AO further noted that the appellant had sold his share of property located at Gokul Govind Apartment for a considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in AY 2008-09 also during the course of scrutiny proceedings. It was submitted that in assessment proceedings and appellate proceedings for AY 2008-09 it was established that the appellant is trading in property and that therefore provisions of section 50C would not be applicable. It was further submitted that if the appellant is treated to be a traded in properties, provisions of section 50C would not be attracted. It was also submitted that the appellant claimed before the AO, at the time of assessment proceedings, that the property should be referred to valuation officer but the AO did not refer the property to the valuation officer and denied the alternate remedy available under section 50C of the Act. 5. The learned CIT(Appeals), h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income in Form ITR-2. In our considered opinion this is not at all a cogent reasoning. In the preceding scrutiny assessment the Revenue has held that the assessee s transaction in sale and purchase of land was a business income. If this be so, there is no question of applying the provisions of section 50C. Further more even if the same is not treated as business asset, it is incumbent upon the AO to refer the matter to the valuation cell if the assessee objects it. Further more the assessee s plea of submission of books of accounts has also not been entertained. 10. We find that the Hon ble Apex Court in the case of Maharana Bhimsingh vs. CIT in order dated 6th December, 2016 has held that though principles of res judicata do not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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