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TMI Blog2022 (7) TMI 1583X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. That the Learned Assessing officer , CPC exceeded his jurisdiction in making the addition of Rs.15,17,527 under section 143 (1) (a)(ii) of the Act 3. That the sale consideration being less than the stamp duty cannot constitute an "incorrect claim u/s 143(l)(a)(ii)" so as to make an adjustment to the returned income . 4. That mere reporting requirement in the tax return that the circle rate of the property is higher than the sale consideration cannot ipso facto lead to an adjustment u/s 143(1) of the Act or addition u/s 50C . 5. That in any case section 50C has no application to the facts of the case. 6. That the Assessing officer / CIT (A) ought to have referred the matter to valuation officer as provided under Section 50C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. The basic issue requiring consideration is, whether the addition made under section 50C(1) can fall within the ambit of adjustments provided under section 143(1)(a) of the Act. It is noticed, the following adjustments can be made while processing the return under section 143(1) of the Act: "Assessment. 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; 7. On a conjoint reading of section 143(1)(a)(ii) along with Explanation it becomes very much clear that the addition under section 50C(1) cannot be in the nature of incorrect claim as provided in Explanation to section 143(1)(a)(ii) of the Act. This is so because, section 50C has to be read as a whole and cannot be restricted to sub-section (1) alone. It is fairly well settled, 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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