TaxTMI 
TaxTMI 
2017 (3) TMI 882
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....ommissioner of Income-tax (Appeals) 5, Chennai, is erroneous, opposed to law and facts of the appellant's case. 2) The learned Commissioner of Income-Tax (Appeals) erred in confirming the addition made by the Assessing Officer by re-computing the long-term capital gains in respect of sale of land while completing the re-assessment for assessment year 2008-09. 3) The learned Commissioner of Income-Tax (Appeals) failed to note that the sale consideration adopted by the Assessing Officer by adopting the rate of Rs. 250 per sq.ft. was disproportionately high when compared to the actual market rate prevailing at the relevant point of time. 4) The learned Commissioner of Income-Tax (Appeals) failed to note that in the appellant's own case w....
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.... Therefore, the AO adopted the guideline value as per the provisions of Sec.50C of Income Tax Act for the purpose of computing the capital gains and brought to tax the difference amount of Rs. 5,61,977/-. 3.0 Aggrieved by the order of the AO, the assessee went on appeal before the Ld.CIT(A) and the Ld.CIT(A) upheld the order of the AO. 4.0 Aggrieved by the order of Ld.CIT(A) the assessee is on appeal before us. 5.0 During the appeal, the Ld.AR argued that the assessee declared the property in his Wealth Tax returns and while completing the Wealth Tax assessment, AO adopted the market value of the asset at Rs. 50/- per sq.ft. which was the guideline value as on 31.03.2008 as per the SRO Office, whereas the AO has adopted the rates Rs. 250....
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....fully gone through section 50C of Income tax act which reads as under: Special provision for full value of consideration in certain cases. 91 50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed 92[or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed 92[or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without preju....
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....w for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.] (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed 94[or assessable] by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed 94[or assessable] by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer.] 5.0 The words used in the act are the value adopted or assessed or assessable by the stamp valuation authority but not any other value. The act is very clear in respect of computation of capital gains, tha....
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....e, we do not find any infirmity in the orders of lower authorities and hold that for the purpose of computation of capital gains u/s.50C guideline value fixed by the Stamp Valuation Authorities has to be adopted. The grounds raised by the assessee on this issue are dismissed. 7.0 The next question raised before us by the Ld.AR of the assessee is whether to compute the capital gains adopting the deemed consideration per Sec.50C of the Act or the sale consideration disclosed as per sale deed, when the assessee has invested the whole of a sum in capital gains exemption bond u/s.54EC of IT Act. The assessee relied on this Tribunal decision in case of Shri Shivkumar Lakshman (cited supra)decided in connection with deduction u/s.54F of income ta....