TaxTMI 
TaxTMI 
2010 (6) TMI 450
X X X X Extracts X X X X
X X X X Extracts X X X X
....eging that these transactions were sham dealing to buy short-term loss which again confirmed by the ld. CIT(A). (iii) The ld. Assessing Officer also erred in not accepting the S.T. Loss on sale of equity shares to be carried forward alleging that these transactions were of sham dealings in nature to buy short-term loss which reconfirmed by the ld. CIT(A). The ITO and the CIT(A) did not confirm the fact that the purchase of shares were of off the market which do not require to route through Stock Exchange." 3. Ground No. 1 is in respect of invoking provisions of section 50C of the Act by adopting the sale consideration at Rs. 1,03,32,000 as against declared by the assessee at Rs. 65 lakhs. 4. The facts, which reveal from the records are that the assessee has shown capital gain on the sale of house property, which was claimed to have been given as gift from her husband in the year 1995-96. The Fair Market Value of the property as on 1-4-1981 as per provisions of section 55(2)(b) of the Act was adopted which was taken at 10.25 lakhs as per the valuation report of the Registered Valuer. The assessee has shown the sale consideration at Rs. 65 lakhs but stamp duty paid for....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... therefore, pleaded that the principles applicable to the erstwhile section 52(2) cannot be applied to section 50C which is brought on statute book by the Legislature to check black money. 6. We have heard the rival submissions of the parties and also anxiously considered the arguments advanced by both the parties. There is no dispute about the fact that in the sale deed, the assessee has declared sale consideration at Rs. 65 lakhs and for the purpose of payment of stamp duty at the time of registration, the value is adopted at Rs. 1,03,32,000. 7. Section 52(2) was omitted with effect from1-4-1988 read as under: "52. Where the person who acquires a capital asset from an assessce is directly or indirectly connected with the assessec and the .............. (2) Without prejudice to the provisions of sub-section (1), if in the opinion of the Income-tax Officer the fair market value of a capital asset transferred by an assessee as on the date of the transfer exceeds the full value of the consideration declared by the assessee in respect of the transfer of such capital asset by an amount of not less than fifteen per cent of the value so declared, the full value of the conside....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation.-For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer." 7.1 As per the language used by the Legislature in section 50C, the following conditions need to be fulfilled: (i) There must be transfer of capital asset which is land or building or both. (ii) The consideration received or accrued on the transfer is less than the value adopted for assessment by the Stamp Valuation Authority on which the stamp duty is paid. (....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of interpretation. While interpreting a provision the court only interprets the law and cannot legislate it." 8.1 We are, therefore, of the opinion that the Assessing Officer has rightly invoked the provisions of section 50C with due authority of law. Nothing has been brought before us to show that the assessee claimed before the Assessing Officer that the value adopted by the Stamp Valuation authority was more than the FMV of the said property and there is no reason to make reference to the Valuation Officer. For the reasons given herein above, we confirm the order of the ld. CIT(A) on this issue and accordingly, dismiss the ground No. 1 taken by the assessee. 9. Next issue is in respect of Short Term Capital Loss on the sale of equity shares and the assessee has taken ground Nos. 2 & 3 on this issue. 10. The assessee has claimed short-term capital loss of Rs. 13,64,302 on one script i.e., Suryadeep Salt which was purchased by the assessee on 2-1-2004 and sold on 26-3-2004. The assessee produced the broker's note in respect of the sale and purchase of the above script. The Assessing Officer has noted that the assessee has shown credit of shares as on 25-3-2004 in the ....