TaxTMI 
TaxTMI 
2012 (9) TMI 356
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....205 days in filing the appeal by the assessee. The reasons for delay in filing the appeal have been given in the application for condonation of delay in filing the appeal. The appeal is against the order passed u/s. 263 of the Act. It appears that the assessee was under the impression that the CIT has given direction to the Assessing Officer ("the AO") to make the assessment afresh and therefore there was no necessity to file the appeal against the order u/s. 263. Later on, the assessee was advised that the Commissioner has revised the order of the AO and therefore the order u/s. 263 of the Act had to be challenged. Thereafter the assessee filed appeal before the Tribunal. Hence the delay in filing the appeal before the Tribunal. 3. Cons....
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....cise of his powers u/s. 263 of the Act was of the view that the aforesaid order of the AO was erroneous and prejudicial to the interests of revenue. The CIT on perusal of the records noticed that though the consideration for transfer as recorded in the instrument of transfer was Rs. 40 lakhs, the registering authorities for the purpose of stamp duty had adopted the value of the property at Rs. 60 lakhs. According to the ld. CIT, in view of the provisions of section 50C of the Act, the full value of consideration received on transfer ought to have been adopted at Rs. 60 lakhs and capital gain computed accordingly. Since the AO has accepted the sale consideration of Rs. 40 lakhs mentioned in the instrument of transfer as full value of conside....
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....the value so adopted or assessed or assessable shall, for the purposes of computation of income from capital gains, be deemed to be the full value of the consideration received or accruing as a result of such transfer. In respect of the transfer under consideration the value adopted/assessed by the Stamp Valuation Authority for the purpose of payment of Stamp Duty has been taken at Rs.60 lakhs. Therefore, as per the provision of Sub Section (1) of Section 50C of the Income Tax Act, 1961 full va1ue of the consideration received or accrued as a result of the transfer of the immovable property situated at Sarjapur Road, Bangalore shall be taken at Rs.60 lakhs. The assessee's argument that the Government Notification dated 18/7/2005 has not ....
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....e Government revised the guidelines value effective from 14.10.2005 by which the guidelines value was enhanced to Rs.1,500 per sq.ft. The sale deed was registered on 31.01.2006. The ld. counsel for the assessee brought to our notice the decision of the ITAT Vishakapatnam Bench in the case of Moole Rami Reddy v. ITO 2011-TIOL-135-ITATVIZAG, wherein the ITAT has taken a view that where on the date of agreement, the value adopted by the registering authorities for stamp duty purposes and the value shown in the agreement for sale are identical and where there is an increase in the guidelines value between the date of agreement and registration of sale deed, then the provisions of section 50C cannot be invoked and the guidelines value prevailing....
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....It was also submitted that no such agreement was ever produced either before the AO or in the course of proceedings u/s. 263 of the Act. It was the submission of the ld. DR that the contention of the assessee that there was an agreement for sale on 04.04.2005 is purely an after-thought and has been propounded by the assessee with a view to take advantage of the decision of the ITAT Vishakapatnam Bench in the case of Moole Rami Reddy (supra). In all respects, the ld. DR relied on the order of the ld. CIT. 12. In reply, the ld. counsel for the assessee submitted that the AO having passed an order u/s. 143(3) of the Act is deemed to have applied his mind even on the aspect of provisions of section 50C of the Act. In this regard, reliance wa....
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.... the agreement for sale of property was entered into on 04.04.2005 and as on that date the value adopted for the purpose of stamp duty by registering authorities was only Rs. 40 lakhs and when the property was registered on 31.01.2006, the guidelines value was increased by the State Govt. w.e.f. 14.10.2005 and therefore the provisions of section 50C could not be applied in the case of the assessee. The assessee has further relied on the decision of ITAT Vishakapatnam Bench. In this regard we find that even in reply to the show cause notice, the assessee has not produced any agreement for sale dated 04.04.2005. Even in the sale deed, there is no mention to the agreement for sale having been made on 04.04.2005. In those circumstances, the ple....