TaxTMI 
TaxTMI 
2020 (5) TMI 90
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....f share of the assessee from sale of agricultural land at Rs. 78,12,100/- as against Rs. 30 lakhs actually received by the appellant vide MOU dated 17.10.2014. 2.2 That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in adopting the sale value of agricultural land as mentioned in SPA dated 6.4.2009 (conveyance deed executed on 23.6.2010) fraudulently got signed from the appellant by the buyer of land namely Shri H.P. Singh, Director, Anushna Estates (P) Ltd. 2.3 That on the facts and in the circumstances of the case the Ld.CIT(A) has erred in adopting the sale consideration of land as mentioned in the SPA dated 6.4.2009 without referring the matter to DVO as envisaged in Sec. 50C of the I.T. Act. 2.4 That in absence of any reference to the DVO the stamp duty valuation adopted for the purpose of computing the long term capital gains is illegal and may be set aside. 3. That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in confirming the order of the AO in treating the loss on sale of shares as non-genuine and thereby not allowing set off against long term capital gains. 4. The Ld. CIT....
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....declared. (ii) During assessment proceeding, on being asked, the assessee filed a copy of the agreement to sale dated 01/04/2009. In the agreement to sale, the assessee has claimed to sale its 50% share in the agriculture land along with remaining 50% owners to "M/s Anushna Estate Private Limited" for a total sum of Rs. 60,00,000 /-. (Rs. 30 lakhs to the assessee and remainingRs. 30 lakh to other owners of the land). According to the Assessing Officer, the said agreement to sale was made on non - judicial stamp paper of Rs. 50 but it was neither registered before any authority nor notarized, so he asked for the sale deed of the property, however, the assessee did not submit the said sale deed. (iii) the Assessing Officer by way of issue of notice under section 133(6) of the Act dated 18/03/2013, gathered a copy of the sale deed from the office of the sub- Registrar and found that the sale deed was registered on 23/06/2010, wherein the total sale consideration of the property exchanged between the seller and buyer was recorded at Rs. 1,56,24,200/-. In the said sale deed, the assessee has been represented by her special power of attorney holder Sh. HP Singh....
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..... 48,12,100/-was justified. 6.4 Before the Ld. CIT(A), the assessee submitted that the other Co-owners of the property and the order of attorney holder had cheated the assessee, therefore, the assessee has pursued legal remedy against all those persons in a court of law. In view of the legal proceedings, those persons have entered into a settlement agreement with the assessee, wherein they have admitted to their crime and considered the harm caused to the assessee. In nutshell, the contention of the assessee was that the property was registered through a special power of attorney dated 06/04/2009, which was fraudulently got signed from the assessee. 6.4 The Ld. CIT(A) admitted the additional evidences filed by the assessee, however, upheld the addition made by the Assessing Officer. 6.5 Before us, the learned Counsel of the assessee has filed paper-book containing pages 1 to 172 . He referred to the copy of agreement to sell available on page 7 to 9 of the paper-book, copy of receipt of Rs. 60 lakhs issued to buyers available on page 10, copy of possession letter issued to buyer of land available on page 11, copy of general power of attorney dated 28/03/2009 available on p....
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....sioner of Income Tax [2017] 88 taxmann.com 849 (Mumbai-Trib.) iv. Ramesh Verma Vs. Deputy Commissioner of Income-tax, Circle, Yamuna Nagar [2017] 163 ITD 421 (Chandigarh -Trib.) v. Income-tax Officer, Ward 6(l), Jaipur Vs. Tara Chand Jain [2015] 155 ITD 956 (Jaipur-Trib.) vi. Smt. Sowcar Janaki Vs. Income-tax Officer [2013] 27 ITR(T) 226 (Chennai-Trib.) vii. Ran Mal Bhansali Vs. Assistant Commissioner of Income-tax [2012] 25 taxmann.com 149 (Jodhpur-Trib.) viii. Smt. Vijay Laxmi Dhaddha Vs. ITO [2009] 20 DTR (AT) 365 (Jaipur) ix. Without prejudice to above, the income declared in the return is Rs. 25,02,300/-. However, the Ld. AO has wrongly mentioned it as Rs. 27,61,600/- in the assessment order and computed tax on Rs. 27,61,600/- 6.8 The learned DR on the other hand relied on the order of the lower authorities and submitted that in view of the Power of attorney dated 06/04/2009 and the registered sale deed, the property has been transferred at recorded sale consideration of Rs. 1,56,24,200/-and therefore, the assessee was liable for long-term capital gain on sale of shares the property on the sale consideration value record....
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....sical vacant possession of the said land has been delivered by the Vendor to the Vendee, on the spot, at the time of registration of this sale deed." 6.12 So if we read, the entire registered sale deed as a whole, then we cannot import part related to sale consideration only as in view of the other part, sale of the property would be taxable in the hands of the assessee in subsequent assessment year. Thus, we cann't take the sale value shown in registered sale deed as sale consideration while treating the agreement to sale as genuine document. 6.13 The second issue would be the applicability of section 50C on the agreement to sell. Regarding this situation, the relevant provision of section 50C are reproduced as under: "Special provision for full value of consideration in certain cases. 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 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 suc....
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.... in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation 1.-For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). Explanation 2.-For the purposes of this section, the expression "assessable" means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law 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 or assessable by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed or assessable by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer." 6.13 We find that the word "assessable" has been inserted in section 50C w.e.f. 01/10/2009. Thus, prior to 01/10/2009, the section 50C was applicable ov....
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....n 50C ."" Thus it is clear that the amended provision of section 50C is not applicable to the transfer which had already taken place prior to the amendment. In the present case the assessee has transferred the capital asset for a consideration of Rs. 74,91,000/- and the document was neither registered nor evaluated for the purpose of stamp duty purposes by the Stamp Valuation Authority at the time of execution of said document . Therefore, there was no evaluation of stamp duty payable on the document. Thus in our view the deeming provision of section 50C do not come in to play thereby replacing the full valuation of consideration of the document with the value calculated by the Stamp Valuation Authority / registering Authority. In the absence of any adoption or assessment by the authority of state government for the purposes of the Stamp duty in respect of subject transfer ( as the document was not registered ), there was no occasion for the AO to either refer the matter to the Registering Authority or to the Stamp Valuation Authority for the purpose of arriving at the valuation of the property." 6.14 In the instant case, if we consider the agreement to sale as....
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....listed on any stock exchange and therefore same are not prone to volatility of the sharemarket 7.3 The Ld. CIT(A) upheld the disallowance of short term capital loss holding that networth of PSJ was not such, which might fetch any premium and any prudent man will not invest in shares of such a company, who has never disclosed any dividend in the past. He further observed that it was not demonstrated how the real estate share prices went up and fell down. 7.4 Before us, the learned Counsel of the assessee submitted that the assessee has discharged her onus by way of furnishing the details of purchase, sale and also details of the buyer. He referred to copy of share certificate available on page 58 of the paper-book. He also referred to copy of cheque used for making the parties, which is available on page 69 of the paperbook. Similarly, he referred to the documents of copy of sale bill and copy of account for cheque of Rs. 50,000/- , which are available on page 63 and 70 of the paperbook. 7.5 The learned Counsel submitted that the Assessing Officer has not prove that the assessee received any consideration in cash from Smt Anjali Jain over and above Rs. 50,000 shown by th....