2014 (1) TMI 1309

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....s per section 50C of the IT Act, while taking the deemed value of sale consideration of the capital asset transferred by the assessee, for the purpose of calculating the capital gain, instead of actual sale consideration received by the assessee. 3. The ld. counsel for the assessee at the very outset submitted that assessee was Co-owner and in possession of a property bearing no. 1/89 Gyan Khand, Indirapuram, in equal shares with Shri Anil Kumar Jain, who is brother of her husband. While passing the assessment order in the case of Shri Anil Kumar Jain, AO has replaced the sale consideration with deemed value of the land computed as per circle rate u/s 50C of the Act. The assessee, Shri Anil Kumar has challenged this action of the AO and ....

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....ved that for the purpose of payment of stamp duty, value of the property has been taken at Rs.78,10,000/-, therefore, he confronted the assessee as to why the sale consideration should not be deemed at Rs.78,10,000/- as per section 50C of the Act. According to the assessee she has contended that sale proceeds shown by her, are the actual sale proceeds, the property does not command fair market value at Rs.78,10,000/-. The AO adopted the sale value at Rs.39,05,000/- being 50% of 78,10,000/- as sale consideration in the hands of the assessee. He observed that assessee failed to give any evidence that the market value of the property is not equivalent to the one notified in the circle rate by stamp duty valuation authorities. He determined the....

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....tal gain, the value of half share of the property is taken at Rs.39,05,000 as per value adopted by stamp valuation authority while registering the sale deed. 8. From this finding recorded by the Assessing Officer, it is clear that the assessee made a claim before the Assessing Officer that the circle rate was much higher than actual market value of the property. In this situation, section 50C(2) provides that without prejudice to the provision of sub-section (1) where the assessee claims before any Assessing Officer or authority that the value adopted or assessed by the stamp valuation authority exceeds the fair market value of the property as on the date of transfer and the value so adopted and assessed by the stamp valuation authority ....