2008 (8) TMI 794 - HC - Income Tax

Court dismisses assessees' writ petitions challenging assessment finalization for 2005-2006, citing automatic relief provision for capital gains tax

Rajini Venugopal Versus Additional Commissioner of Income-tax

The Court dismissed the writ petitions filed by the assessees challenging the finalization of assessment for the assessment year 2005-2006. The Court held ... - Issues:Assessment based on section 50C valuation, Intervention of Addl. CIT under section 144A, Disagreement on valuation report by Valuation Officer, Writ petitions challenging assessment finalization based on stamp valuation authority's value.Analysis:The assessees filed writ petitions seeking a writ of certiorari to quash an order finalizing assessment for the assessment year 2005-2006. The issue arose when the AO proceeded to complete the assessment by computing capital gains on land transfer under section 50C, despite the assessees' contention that only actual sale proceeds should be considered. The Addl. CIT directed the AO to ignore the Valuation Officer's report and adopt the value assessed by the stamp valuation authority as the full consideration for sale. The assessees argued that assessment should not be finalized until the outcome of writ petitions filed by purchasers challenging the stamp valuation authority's orders.The Court rejected the argument, stating that any relief granted in favor of the transferee would automatically apply to the assessees, allowing for adjustment of capital gains tax accordingly. Therefore, keeping the assessment pending until the finalization of the writ petitions was deemed unnecessary. Consequently, the Court dismissed the writ petitions, permitting the assessees to participate in the purchasers' writ petitions pending before the Court.