AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (10) TMI 365
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which was added by the AO with aid of section 50C of the Income Tax Act, 1961. 3. Brief facts of the case are that he assessee has filed its return of income on 29.9.2012 declaring total income at Rs. 4,62,100/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has sold two immovable properties in which it has shown documented sale consideration at Rs. 35.00 lakhs, whereas for the purpose of stamp duty, value determined by the Sub-Registar office, Sanand was at Rs. 79,22,449/-. The AO sought explanation of the assessee as to why value on which stamp duty was paid be not deemed as full c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eal before the ld.CIT(A). The ld.CIT(A) partly accepted appeal of the assessee. He accepted the stand of the assessee that as far as plot no.143/1 and 143/2 are concerned, it has cancelled the sale deed, because it got refund of Rs. 10 lakhs which was paid by it for the purchases. As far as plot no.139/1 and 141/3+4 are concerned, the ld.CIT(A) did not accept the stand of the assessee. The discussion made by the ld.CIT(A) on this issue reads as under: "4.6. With regard to the addition u/s.50C of the Act, it was observed by the AO that the appellant is a limited liability partnership firm and dealing in import, export, sale and distribution of agricultural products and cattle feeds. The AO has noticed that the assessee has shown two immova....
X X X X Extracts X X X X
X X X X Extracts X X X X
....part a nature of sale. The appellant has also furnished affidavit from the vendors confirming the above transactions of cancellation. The appellant has also relied upon the case of Smt. D. Anitha of Hyderabad ITAT wherein it is held that where the property was encumbered and thus she was not absolute owner of property, while computing capital gain arising from transfer of such property, market value of property as taken for purpose of payment of stamp duty could not be adopted as sale consideration by adopting provisions of Section 50C of the Act. The facts of the case and the submissions are considered. The main contention of the appellant is that the plots purchased by it were of no use due to absence of access of road and it has to ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... provisions of Section 50C of the Act for the sale of these plots. Thus the ground of appeal is partly allowed." 5. Before us, the ld.counsel for the assessee reiterated submissions as were made before the ld.CIT(A). He contended that with regard to second plot, the lawyer who got the alleged deed drafted committed a mistake by mentioning it as a sale deed instead of cancellation deed. He further contended that there is no transfer of plot in this exercise and section 50C ought not to be applied. During the course of hearing, he produced site plan wherein geographical location of plots is being displayed. On the strength of this site plan, he contended that remaining plot nos.139/1 and 141/3+4 are concerned, they are of no use to the asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t could be said that original deed was cancelled ? The ld.first Appellate Authority has rightly rejected this stand of the assessee. If the original deed was cancelled, then status of the plot as on 23.9.2010 would be restored. Here the assessee has created fresh right to Ambica Polypack Industries. 7. As far alternative contention is concerned, we are of the view that section 50C provides that where the consideration received or accruing as a result of transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall for the purposes of section 48, be deemed to b....