TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 374
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on the basis of market valuation by Registration Authority." 2. Briefly the facts of the case are that original return of income was filed for both the years on 11th November 2013 and 30th September 2009 which was processed under section 143 of the Income Tax Act,1961. Subsequently, a search action under section 132 of the Income Tax Act was carried out in the case of M/s. Aakriti Hotels Private Ltd., and M/s. Jaguar Buildcon Pvt. Ltd., at Community Centre, Saket, New Delhi on 22nd November 2011. During the course of search proceedings, certain documents belonging to the assessee-company were seized. The A.O. recorded the satisfaction under section 153C of the Income-Tax Act, 1961 and proceeded against the assesseecompany. During the co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t. The A.O. however did not accept the contention of the assessee-company and made the addition of Rs. 8,87,15,897/- and Rs. 24,25,35,000/- on account of unexplained investment in the hands of the assesseecompany in both the assessment years under appeals and computed the income accordingly under section 153C of the Income Tax Act, 1961. The assessee-company challenged the assumption of jurisdiction under section 153C of the Act as well as additions on merit before the Ld. CIT(A). The written submissions of the assessee-company is reproduced in appellate order in which the assessee-company reiterated the same facts as were submitted before the A.O. It was further submitted that the conclusion drawn by the A.O. is not supported by Law. No a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er the registration authority. Valuation as per the registration authority is only intended to collect stamp duty for sale purchase transaction. Considering the entire facts & circumstances of the case, I agree with the arguments of Ld.AR that unaccounted investment in property cannot be computed on the basis of market valuation by registration authority. For computing capital gain, such valuation can be taken as deemed consideration by virtue of specific deeming provision contained in section 50C of I.T. Act., in the hands of the seller. There is no such deeming provision for computing unaccounted investment u/s 69B or undervaluation of property. No evidence was gathered by the assessing officer which establishes payment outside books of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... after 1-10-2009 and, therefore, where property was purchased by assessee in financial year 2007-08, mandate of section 56(2)(vii) could not be applied retrospectively Substitution of 'full value of consideration received' with 'stamp value' in terms of section 50C is applicable only in hands of seller of property who has to compute capital gain under section 48 pursuant to transfer of a capital asset." 4.3. Order of ITAT, Ahmedabad B-Bench, Ahmedabad in the case of ITO, Ward-4(3), Ahmedabad vs. Harley Street Pharmaceuticals Ltd., reported in (2010) 6 ITR (T) 182 (Ahmedabad) in which it was held as under : "Section 50C, read with sections 69 and 69B of the Income-tax Act, 1961 - Capital gains - Special provision for ful....
X X X X Extracts X X X X
X X X X Extracts X X X X
....x) have been inserted into the Income Tax Act with effect from 01.04.2017 to deal with such situation which would not be applicable to assessment years under appeals. 5. We have considered the rival submissions and do not find any justification to interfere with the Orders of the Ld. CIT(A) in deleting the additions. It is not a denying fact that Section 50C is applicable in the case of the seller of the property to take into consideration the valuation of the property as per the value adopted by the Registration Authority. However, there is no provision under the Income Tax Act to deal with such situation in respect of the purchase of the property. Section 56(2)(x) of the Income-Tax Act was inserted into the Act with effect from 1st April....