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TMI Blog2023 (9) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... l -1, Mumbai- 1 [hereinafter referred to as 'the DRP') under section 144C(5) of the Act. 2. The Appellant has raised following grounds of appeal: 1. Objection against confirming addition of Rs. 41,55,300/- u/s. 50C of the Act 1.1 The Dispute Resolution Panel, hereinafter referred to as the "DRP". has erred in confirming the addition of Rs. 41,55,300/- on account of Section 50C of the Act as proposed in the Draft Assessment order by the assessing officer. 1.2. The DRP has erred in not appreciating the fact that the difference between the value adopted for the purpose of stamp duty and the transaction value is negligible and also that the said difference is due to certain negative factors in relation to the residential flat sold by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings the Assessing Officer noted that the appellant had sold a capital asset, being a flat acquired by the Appellant by way of a Gift Deed, dated 15/05/1964, for consideration of INR 396,00,000/- during the relevant previous year. The appellant had also claimed deduction for expenses aggregating to INR 16,05,380/-. According to the Assessing Officer the value assessable by the Stamp Valuation Authority was INR 4,37,55,300/- and therefore, provision of Section 50C of the Act were attracted. Since the Appellant disputed the value, reference was made to District Valuation Officer (DVO). Since the report of DVO was not received, the Assessing Officer proceeded to pass Draft Assessment Order, dated 25/09/2021 computing Long Term C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act would not be attracted in the fact and circumstances of the present case holding as under: "5.4 We have carefully considered the submissions made by the assessee. It is noted that the third proviso to section 50C(1) was inserted w.e.f. 1-4-2019 by Finance Act, 2018, which provided that "where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five percent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration". This proviso was further amended by the Finance Act 2020, w.e.f. 1-4-2021 inasmuch as the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority exceeds 110% of the sale consideration of INR 3,96,00,000/- disclosed by the Appellant. However, since the DVO has determine the fair market value of the capital asset at INR 4,00,32,000/-, the assessing officer is directed to re-compute LTCG by taking the same as full value of consideration. 7. Similarly, as regard disallowance of deduction claimed by the Appellant in respect of the expense of INR 32,000/-, being fee paid for valuation, and expenses of INR 4,03,380/- pertaining to travel of Appellant to India are concerned, we concur with the Assessing Officer and the DRP that the deduction for the aforesaid expenses cannot be allowed as the same were not connected with the transfer of the capital asset. Expenses of INR 32,000/- wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be addressed by the concerned regulator. As regards computation of LTCG in the hands of the Appellant, the Appellant parted with the money for discharging the his liability as per Clause 15 of the Deed of Transfer which crystallized on execution of Deed of Transfer on 12/02/2018. In view of the aforesaid, we hold that the payment of INR 11,70,000/- made by the Appellant to the Society by way of cheque was expense connected to transfer of capital asset and therefore, the same should be reduced from the full value of consideration while determining the amount of LTCG. The Assessing Officer is directed accordingly. 9. In terms of paragraph 6 to 8 above, Ground No.1 and 2 raised by the Appellant are partly allowed. Ground No.3 raised by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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