2018 (11) TMI 540

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....m capital gains addition of Rs. 70,34,635/- by invoking Section 50C of the Act, in proceedings u/s. 143(3) of the Income Tax Act, 1961; in short "the Act". Heard both the parties. Case file perused. 2. We advert to rival pleadings first. The Revenue's sole substantive grievance seeks to revive the Assessing Officer's impugned action making long term capital gains addition of Rs. 70,34,635/- as deleted in course of lower appellate proceedings. The assessee's cross objection on the other hand pleads that Section 50C of the Act is not applicable in its case being a charitable trust already assessed under a special provision u/s.11 of the Act. 3. There is no dispute between the parties about the fact that this assessee is a public trus....

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.... the above, AO has taken the full consideration of the property to be Rs. 74,87,400/- and cost of acquisition is held to be Rs. 71,640/- as per the book value of the appellant and LTCG is worked out at Rs. 70,34,635/-. From the submission made by the appellant, the following facts emerg: (i) Appellant has adopted the sales value as per approved by the Charity Commissioner and this value is adopted by the Chanty Commissioner after inviting objections to the proposed sale by advertising in Vernacular Daily 'Sandesh', (ii) Appellant has challenged the Stamp Duty Valuation before the AO by pointing out that the sale value is adequate because some part of the property was encroached by nearby slum areas and as ....

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....n education institution and approval has also been granted by the Competent Authority. In the entirety of facts and circumstances discussed above, it is held that the AO was not justified in working out and making addition of Rs. 70,34,640/- on account of LTCG. The same is hereby directed to be deleted. The relevant grounds of appeal are allowed. " 4. Learned Departmental Representative vehemently contends that the CIT(A) has violated the provision contained in Rule 46A of the Income Tax Rules in admitting assessee's additional evidence in the nature of its registered valuer's report that the above capital assets' fair market value was Rs. 12.4lacs only. His case is that the CIT(A) did not issue any notice to the Assessing Offic....