Section 50C revisionary challenge failed where registered sale consideration was accepted and no stamp valuation discrepancy was established.

Section 263 revision cannot be used to disturb an assessment where the Assessing Officer accepted the sale consideration disclosed in registered deeds and the record did not establish the conditions for section 50C. The assessee had reported capital gains on transfer of immovable property, the stated consideration was accepted by the Sub-Registrar, stamp duty was paid on that value, and there was no deficit duty. On those facts, the Revenue's reliance on an alleged higher guideline value or unverified discrepancy was insufficient to show error in the assessment, so the revisionary order was quashed in favour of the assessee.

---

---

Issues: Whether the Principal Commissioner was justified in invoking revisionary jurisdiction under section 263 of the Income-tax Act, 1961, on the ground that the Assessing Officer ought to have substituted the sale consideration declared by the assessee with the alleged higher stamp valuation under section 50C.

Analysis: The assessment was made on limited scrutiny after the assessee disclosed the transfer of immovable properties and computed capital gains on the basis of the sale deeds. The record showed that the consideration of Rs. 80 lakhs for each document was accepted by the Sub-Registrar, stamp duty was paid on that value, and there was no deficit stamp duty. Section 50C applies only where the consideration declared is less than the value adopted or assessed by the stamp valuation authority for the purpose of stamp duty. On the facts found, the stamp valuation authority had accepted the registered consideration, and the Revenue's contrary reliance on an allegedly higher value was not supported by the material placed before the Tribunal. The revisionary order could not therefore be sustained merely on the basis of an asserted higher guideline value or an unverified discrepancy.

Conclusion: The invocation of section 263 was not justified and the revision order was quashed, in favour of the assessee.

Ratio Decidendi: Revision under section 263 cannot be sustained where the Assessing Officer adopts the consideration accepted by the stamp authority and the conditions for section 50C are not established on the record.

---