Court dismisses writ petition on property sale below stamp duty value for Assessment Year 2019-20.

The court dismissed the writ petition concerning Assessment Year 2019-20 under the Income Tax Act, 1961, related to the sale of properties below stamp duty value and non-disclosure of payment receipt. The petitioner's delay in approaching the court and the need for further investigation by the Assessing Officer were highlighted. The court declined to entertain the petition but directed the revenue to provide approval for reassessment proceedings within ten days. The petitioner was allowed to raise legal and factual contentions during reassessment. No separate judgments were delivered by the judges.

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Issues involved:
The judgment concerns a petition related to Assessment Year 2019-20 under the Income Tax Act, 1961. The two main allegations against the petitioner/assessee are related to the sale of an immovable property below stamp duty value and non-disclosure of receiving payment for another property.

First Issue - Sale of Ground Floor Property:
The petitioner sold a property below the circle rate, but within the safe harbor limit of 5% deviation as per the 3rd proviso to Section 50C of the Act. The stamp duty paid by the petitioner is considered in this transaction. The respondent argues that the Assessing Officer should examine if there was a cash component involved in the sale.

Second Issue - Sale of Basement Property:
The petitioner received payment for the basement property but faced difficulties as the buyers did not fulfill their obligations due to litigation. The unregistered agreement showed that physical possession of the basement property was already given. The respondent argues that as per Section 2(47)(v) of the Act, the transfer of possession constitutes a transfer of property.

Court's Decision:
The court noted that the petitioner approached after a significant delay and that there are aspects the Assessing Officer needs to investigate. The court declined to entertain the petition, considering the progress made by the AO. The court highlighted the unusual situation where stamp duty was paid by the seller and questioned the petitioner's inaction in pursuing the remaining payment for the basement property. The court dismissed the writ petition but directed the revenue to provide the approval document within ten days for reassessment proceedings. The petitioner can raise all legal and factual contentions during the reassessment.

Separate Judgment by Judges:
No separate judgment was delivered by the judges in this case.

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