TaxTMI 
TaxTMI 
2014 (3) TMI 494
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....o one was present on behalf of the assessee at the time of hearing however on going through the material available on record it was considered appropriate to proceed with the present appeal ex-parte qua the assessee respondent on merit after hearing the Ld. Sr. DR. The relevant facts emanating from a perusal of the assessment order are that the assessee individual declared an income of Rs.1,65,890/- which was processed u/s 143(1). The case was selected for scrutiny under CASS by issuance of notice u/s 143(2) and 142(1) and the income was assessed at Rs.43,24,340/- as a result of additions made of Rs.38,25,423/- denying the claim of Long Term Capital Gain and Rs.32,895/- as difference in interest as per AR information and what was disclosed ....
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....t Rs.22,970/- in his income and Expenditure account and therefore, he added back the balance amount of Rs.32,895/- to the income of the appellant." 3.2. The record shows that the assessee advanced various arguments on facts and law before the CIT(A). These have been extracted in the impugned order at para 4.2 and are reproduced hereunder for ready-reference :- "4.2. In Ground Nos. 2, 3 & 4, the appellant has impugned the invocation of Sec.50C of the Act, the adoption of the rate of Rs.16,100/- per sq mtr. Without any basis and the addition of Rs.38,25,423/- to the income of the appellant under the head Long Term Capital Gain. The ld. AR of the appellant has submitted that Section 50C of the Act would come into play only if the sal....
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.... is such a difference, the valuation adopted by the Stamp Valuation Authority has to be substituted for the sale consideration of the property mentioned in the sale deed. In the instant case, there has been no such valuation for Stamp Duty purposes as the transaction was through GPA. The ld. AR has also relied upon the case of ACIT vs Excellent Land Developers Pvt. Ltd. (2010) 001 ITR (Trib.) 563, wherein it has been held that the settled law is that the deeming provisions are to be strictly construed and will not extend to areas other than those to which it is deemed to apply. The deeming provision consumes an unreal thing as real. Therefore, the provisions of Section 50C of the Act cannot be imported in the instant case." 3.3. Considerin....
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....ircle rate @ 16100 per mtr on the sale of the plots:- (i) Long Term Capital gains Property no 61, Khasra No-162, Nawada, New Delhi =167.22Sq.Mtrs*16100/- = Rs.26,92,242/- Less Cost of acquisition = (-) Rs.979749/- Total = Rs.17,12,493/- Property No-321, Khasra No-64/19, Nangli Vihar Extn = 146.3Sq.Mtrs*16100/- = Rs.2355430/- Less;Cost of acquisition = (-) Rs.242500/- Total = Rs.2112930 Total Capital gain (i) + (ii) =Rs.17,12,493+ Rs.2112930/- = Rs.3825423/-." 4.1. In the above background where the issue has not been discussed by the AO. The Ld. Sr. DR was required to address as to what was the basis of the adoption of the Circle rate of Rs.16,100/- per sq. mtr. by the AO. Since the assessment order is silent on this very vital relev....