2015 (10) TMI 2644

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....the facts are, the assessee a company filed its return of income for the assessment year under consideration on 29th November 2006, declaring loss of Rs. 12,80,636, under the normal provisions and book profit of Rs. 73,03,098 under section 115JB of the Income Tax Act, 1961 (for short "the Act"). During the assessment proceedings, the Assessing Officer, on verifying the material on record, found that the assessee, during the relevant previous year, has sold two office premises at Prime Plaza, Santacruz, Mumbai, for a declared sale consideration of Rs. 2,07,90,000, for each of the office premises. Whereas, the Dy. Registrar, Andheri, Mumbai, while registering the sale documents has valued each of the flat at Rs. 2,23,87,054, for stamp duty pu....

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....(1)(c) of the Act for an amount of Rs. 10,75,136, being 100% of the tax sought to be evaded. Being aggrieved of the penalty order, the assessee preferred appeal before the first appellate authority, inter-alia, on the ground that when the addition has been made by applying the provisions of section 50C of the Act, it is a debatable issue, hence, penalty is not imposable. In this context, he relied upon the decision of the Hon'ble Rajasthan High Court in CIT v/s Harshvardhan Chemicals & Minerals Ltd., 259 ITR 212 (Raj.). He also relied upon the decision of the Hon'ble Supreme Court in CIT v/s Reliance Petroproducts Pvt. Ltd., [2010] 322 ITR 158 (SC), to submit that making of an legally inadmissible claim by itself would not lead to a....

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....er than the value adopted by the stamp valuation authority for stamp duty purpose such value shall be the sale consideration deemed to have been received by the assessee of course, subject to the provisions contained under sub-sections (2) and (3) of the Act. Thus, from the aforesaid provisions, it is clear that for applying the said provision, the Assessing Officer need not have to establish whether actual sale consideration received by assessee is the value adopted by the stamp valuing authority for stamp duty purpose. However, as far as imposition of penalty under section 271(1)(c) of the Act is concerned, the Assessing Officer has to prove the fact that the assessee actually received as sale consideration, the amount determined as the v....