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TMI Blog2018 (6) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... tamp duty valuation. 2. The ld. CIT(A) has erred in confirming interest charges by AO u/s.234B & 234C of Income Tax Act, 1961. 3. The assessee craves for liberty to amend, modify and add any grounds of appeal or furnish additional evidences." 3. The first issue raised by the assessee in this appeal is that learned CIT(A) erred in confirming the order of the AO by sustaining the disallowance of Rs. 8,60,120/- u/s 50C of the Act. 4. Briefly stated facts are that the assessee in the present case is HUF and deriving his income from business and other sources. The assessee during the year had sold a land bearing survey no.763 located at Village Karannagar for Rs. 50,00,000/- dated 16-07-2008. The share of the assessee in the property was 1/5th i.e. 20% only. Accordingly, the assessee offered the long-term capital gain for his share of profit in its income tax return. However, the AO during the assessment proceedings observed that value of the property for stamp duty purpose was ascertained at Rs. 93,00,600/- only. Therefore, the same should be adopted for capital gain computation under the provision of section 50C of the Act. Accordingly, the AO worked out the share of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduce the provisions of section 50C of the Income tax act. "(1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government (hereinafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provisions of sub-section (1), where- (a) the assessee claims before any Assessing Officer that the value adopted or assessed or assessable by the stamp valuation authority under sub-section. (1) exceeds the fair market value of the property as on the date of transfer. (b) the value so adopted or assessed or assessable by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant has relied on the decision of CIT vs. Kishanchand Chetiar 125 ITR 713 to contend that a copy of valuation made by the AO was not supplied t him. In this regard, it is seen that the stamp duty paid on the document has been worked out on a value of Rs. 93,00,600/- which is the value provided by the stamp valuation authority to the AO . The Appellant was well aware of this value as he had paid stamp duty on the same. Therefore, the appellant's contention that a copy of the valuation made by the AO was not supplied to him is not correct. AO's action in obtaining the copy of valuation can be at the most treated as a process of verification. The rate stated by the stamp valuation authority was in line with the rate adopted by payment of stamp duty by the appellant for registration of the documents. There being no discrepancy, there was no requirement on part of the AO to give the copy of the valuation obtained from registrar to the appellant. The appellant has also relied on the decision of ITAT Hyderabad Bench in the case of DCIT vs. Venkat Reddy (2013) 32 Taxmann.com 324 (Hyd. Trib). The facts of the case of are different. The LTCG was offered in the year of transactions whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditional ground was raised. Hon. SMC Bench have vide ITA no. 520 to 523/AHD/2014 decided the appeals as under: 6. "Since the sale has taken place in F.Y. 2007-08 Pertaining to A.Y. 2008-09, the capital gains, if any, have to be taxed in A.Y. 2008-09. We find that the appellants have disclosed the capital gains in A.Y. 2009-10 which is not the proper year for the taxability of capital gains." 7. "We accordingly restore the issue to the files of the A.O. The A.O. is directed to determine the capital gain tax liability as per the provisions of the law in A.Y. 2008-09.The A.O. is directed to allow credit of taxes, if any, paid relating to the sale of the impugned land in A. Y. 2008-09. Even if the said tax has been paid by the appellants in A. Y. 2009-10." The copy of the appellate order of Hon. SMC Bench was given to your honors during the course of hearing of appeal on 25/05/2018. Accordingly the issue involved in appeal before your Honors is covered by said decision. 2. During the course of hearing the A.R. had brought to the kind notice of Hon. Bench that in case of other co-owners for giving effect to the appellate order of Hon. ITAT, the A.O.'s have re-opened the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/AHD/2014 vide order dated 24-07- 2017. The relevant extract of the order is reproduced below: "7. We accordingly restore the issue to the files of the AO. The AO is directed to determine the capital gains tax liability as per the provisions of the law in A.Y. 2008-09. The AO is directed to allow credit of taxes, if any, paid relating to the sale of the impugned land in A.Y. 2008-09. Even if the said tax has been paid by the appellants in A.Y. 2009-10." Learned DR vehemently supported the order of authorities below. 6. We have heard the rival contentions and perused the materials available on record. At the outset, we find that in the identical facts and circumstances the Hon'ble ITAT in the case of the Sudhir Kumar G Patel (HUF) and others (supra) has directed the AO to charge the capital gain income in the year assessment 2008-09. The relevant extract of the order has already been reproduced in the preceding paragraph. Therefore we respectfully following the same restore the matter to the file of AO for fresh adjudication regarding the direction issued by the Hon'ble Tribunal in ITA Nos. 520 to 523/AHD/2014 vide order dated 24-07-2017. However, the learned AR during the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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