9911796707
TMI Blog2016 (9) TMI 1568X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case, the ld. CIT(A) has erred in confirming the addition of Rs. 10,24,305/- on account of long term capital gain by invoking the provisions of Section 50C of the Income Tax Act, 1961. 3. That under the facts and circumstances of the case, the ld. CIT(A) has erred in confirming the addition of Rs. 13,50,000/- on account of cash deposited in the bank account." 2. The following modified additional ground has also been raised: "Under the facts and circumstances of the case, the proceeding initiated U/s 148 of the Income Tax Act, 1961 is void ab-initio deserves to be quashed because the action has been taken on the basis of the provisions of Section 50C of the IT Act. 3. The modified additional ground is admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Officer V.s Shiv Shakti Build Home (P) Ltd.' (supra) is squarely applicable to the present case and herein also, the reassessment proceedings have wrongly been initiated; and that as such, the reassessment proceedings be quashed. 5. On the other hand, the ld DR has placed strong reliance on the impugned order. It has been contended that it has nowhere been disputed, as correctly observed by the ld. CIT(A), that as per the sale deed, the property was sold by the assessee in joint ownership with his wife, for Rs. 2,00,000/-, whereas the Stamp Valuation Authority determined the fair market value at Rs. 38,69,115/- (Rs. 19,34,557/- attributable to the assessee); that moreover, the assessee did not dispute the fair market value before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escapement of income; that there has to be a nexus between the formation of belief and the escapement of income; that only valuation done by the Stamp Valuation Authority and the Inspector's report had been taken as the basis for formation of belief of escapement of income; that there has to be a reason for the formation of the belief of escapement of income and the reason should be such, as from which, prima facie, it could be inferred that there is escapement of income; that every reason, even if remotely connected to the issue, cannot be said to be a sufficient reason for formation of belief of escapement of income; that there has to be a live nexus between the reason and the formation of the belief; that merely because the Stamp Valuat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any Assessing Officer that the value adopted or assessed 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 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 Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of subsections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed shall, for the purposes of Section 48, be deemed to be the full value of the consideration received as a result of the transfer. Section 48 of the Act provides the mode of computation of capital gains. A conjoint reading of Sections 50C and 48 of the Act shows that the deeming provisions of Section 50C are only for such computation. That being so, as rightly contended, the valuation adopted by the Stamp Valuation Authority cannot, by itself, be made the basis for reopening the concluded assessment. 10. Thus, a mere adoption of higher value of the property by the Stamp Valuation Authority cannot lead to a formation of belief of escapement of income, particularly when the value so adopted is adopted for stamp duty purposes only. 11. More ..... X X X X Extracts X X X X X X X X Extracts X X X X
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