TMI Blog2022 (11) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... of processing of return u/s 143(1)(a), if such an adjustment is made, the assessee does not get an opportunity to object, as per section 50C(2) of the Act. More so, when conditions of the 1st and 2nd proviso to section 143(1)(a) are not complied. Therefore, hold that the addition made by CPC under section 50C(1) of the Act by way of adjustment u/s 143(1)(a)(ii) is unsustainable. Accordingly, delete the addition. Disallowance of benefit of brought forward losses of earlier years - assessee s claim of set off and carry forward of loss was rejected by Commissioner (Appeals), since, he did not find merit in assessee s ground contesting the addition made u/s 50C(1) - HELD THAT:- While deciding ground No. 1 and 2 of assessee s appeal I have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee, being the difference between the declared sale consideration and the value determined by the stamp valuation authority for stamp duty purpose. Though, the assessee contested the aforesaid addition before learned Commissioner (Appeals) however the addition was sustained. 4. I have considered rival submissions and perused the material on record. Undisputedly, while processing the return of income filed by the assessee under section 143(1) of the Act, the addition has been made by way of adjustment applying the provision of section 50C(1) of the Act. Contesting the addition, the primary contention of the assessee before me is to the effect that the addition made under section 50C(1) of the Act can not fall within the ambit of adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled, a deeming provision has to be taken to its logical end. Undoubtedly, section 50C is a deeming provision. Though, sub-section (1) of section 50C provides for substituting the stamp duty value as deemed sale consideration in place of the declared sale consideration, however, sub-section (2) carves out an exception by providing that if the assessee objects to the stamp duty value, the valuation has to be referred to the Department Valuation Officer (DVO) and in case the value determined by the DVO is lower than the stamp duty value, the value determined by DVO has to be considered for computing capital gain in terms with sub-section (3) of section 50C. Therefore, sub-section (1) to section 50C cannot be considered in isolation. By making ..... X X X X Extracts X X X X X X X X Extracts X X X X
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