2013 (2) TMI 424

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....bsp; 2. Short facts apropos are that assessee had filed return for impugned assessment year admitting nil income. During the relevant previous year, assessee had transferred vacant lands at Guduvanchery, Chennai, and for such land transferred, the sale consideration shown in the return of income was Rs. 41,29,500/- and Rs. 80,76,100/- respectively. However, A.O., on going through the registered document, noticed that the value adopted by stamping authority for the purpose of registration of the document was Rs. 41,33,280/- and Rs. 1,02,02,400/-. Assessing Officer endeavoured to substitute such amounts with what was shown by the assessee for computing capital gains and this was not objected by the assessee. The assessment was according....

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....not challenged the addition made by the A.O. to avoid litigation. According to assessee, nothing was brought on record by the A.O. to show that any amount than what was stated by the assessee was received by it. Ld. CIT(Appeals) was appreciative of this contention. According to him, every addition of income made in the assessment need not necessarily attract penalty under Section 271(1)(c) of the Act. Just because the A.O. had substituted the value obtained from Sub-Registrar's office as fair market price, it could not be concluded that there was any inaccurate particulars furnished by the assessee. Relying on the decision of co-ordinate Bench of this Tribunal in the case of CIT v. N. Meenakshi (125 TTJ 856), ld. CIT(Appeals) opined t....

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.... the registering authority, in accordance with the mandate under Section 50C of the Act. Section 50C of the Act calls for substitution of the actual consideration on a transfer, with the value adopted by an authority of State Government for the purpose of payment of stamp duty for calculation of capital gains. But, the actual consideration received by the assessee will not get altered by such substitution. It is only for the purpose of computation of capital gains, the substitution is done by the Assessing Officer. Clause (2) of Section 50C clearly gives the assessee a right to claim before Assessing Officer that the value adopted by the stamp valuation authority exceeded fair market value of the property as on the date of transfer. It migh....