TMI Blog2003 (1) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... respectively. The assessee is also objecting the levy of interest under section 234-A, B C. 2. Brief facts of the case are that assessee purchased two properties i.e., House No. 5908/XV, Nabi Karim, Delhi and Shop No. 11381, Singhara Chowk, Nabi Karim for consideration of ₹ 76,000 and ₹ 2,17,000 on 7-7-1997 and 27-5-1997 respectively. Both these properties were sold by assessee for a consideration of ₹ 90,000 and ₹ 2,25,000 on 8-9-1997 and 30-5-1997 respectively. The short term capital gain was shown by assessee in his return of income. On enquiries made by Inspector, the Assessing Officer came to know that the market rate were much higher than what had been declared by the assessee. Consequently the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in the case of K.P. Verghese v. ITO, 131 ITR 597. 4. After considering the submissions and perusing the other material on record, the CIT(Appeals) was not satisfied with the explanation given on behalf of assessee. It was held by the CIT(Appeals) that the provisions of section 55A were applicable on the facts of the present case, because these provisions are on statute. While doing so the CIT(Appeals) has placed reliance on the decision of the Hon ble Andhra Pradesh High Court reported in 181 ITR 119 and Hon ble Allahabad High Court reported in 227 ITR 27 and also 228 ITR 591 , wherein it was held that the provisions of section 55A are applicable for determining the fair market value of capital asset for the purpose of capital ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relied upon by both the parties. After considering all the relevant material, we find that assessee deserve to succeed in his appeal. As stated above, these two properties were purchased on 7-7-1997 and 27-5-1997 and they were sold on 8-9-1997 and 30-5-1997 for a profit of ₹ 14,000 and ₹ 8,000 respectively. The purchase and sale were entered by the assessee through valid piece of agreement i.e., General Power of Attorney and sale deed etc. which were duly registered with the concerned authorities. The receipt of payments duly executed on both of the occasions, i.e., at the time of purchase of these properties and at the time of sale. Copies of all these documents are placed on record. There is nothing on record which suggests ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer is shown at a lesser figure than that actually received by the assesee, and the burden of proving such understatement or concealment is on the revenue. The sub-section has no application in the case of an honest and bona fide transaction where the consideration received by the assesee has been correctly declared or disclosed by him. 8. The Hon ble Delhi High Court in the case of Late Shri Gulshan Kumar (supra) followed the decision of Supreme Court and in paragraph 21 of its order has held as under :- 21. We have carefully considered the relevant provision and the decision of K.P. Varghese (supra) in extenso. The orders of CIT(A) and the Tribunal have correctly reached to the conclusion that there is no material on record t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwise. No such material or evidence was brought on record except the valuation report by the Departmental Valuation Officer. Without bringing any material on record, the value of the consideration cannot be altered. Therefore, in view of the all these facts and circumstances and in view of the decision of the jurisdictional High Court and the Apex Court, we hold that the Assessing Officer and the CIT(Appeals) were not justified in changing the value of sale consideration shown by assessee in respect of both the properties for the purpose of capital gain. Accordingly we set aside the order of the CIT(Appeals) and the Assessing Officer is directed to accept the sale consideration shown by assessee in respect of both these properties. 11. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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