2020 (7) TMI 623

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....and grounds, for the sake of convenience they are taken up together for adjudication and disposed of by this common order. 2. Both the assessees have raised several identical grounds in their respective appeals however, the crux of the issue is that the Ld CIT (A) has erred in confirming the order of the Ld. AO who had unduly invoked the provisions of Section 50C of the Act. 3. The brief facts of the case are that the HUF of Justice B. Subhashan Reddy, and Smt. B. Ratna (Individual) filed their respective return of income on 31/7/2007 disclosing taxable income of Rs. 30,68,930/- and Rs. 29,72,240/- respectively. Both the cases of the assessees were reopened as it was observed that there is escapement of income since the SRO value of t....

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.... (v) The area notified for acquisition by the Government vide letter dated 09/7/2006 was 291.83 sq.yds (vi) The compensation proposed for the acquisition was only the benefit of reconstruction of compound wall, sump, borewell or any other structures other than the main building, structural compensation for the building as specified and TDR certificate as per Government GO so as to enable the assessees to utilise FAR of affected area on any other site within the limits of Municipal Corporation of Hyderabad. (vii) Other than the aforesaid compensation, no other benefit was available to the assessee on the surrender of 291.83 sq.yds of land along with building. Thus, no compensation was paid for the acquisition of the land. ....

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.... 7. On appeal, the Ld. CIT (A) confirmed the order of the Ld. AO by agreeing with his view. 8. At the outset, I do not find any merit in the orders of both the Ld. Revenue Authorities. It is pertinent to mention that the provisions of section 50C was introduced to curb the menace of unaccounted cash being infused in the real estate transactions. Quite often the actual sale consideration paid for acquiring immovable property is more than the sale consideration disclosed in the sale deed executed. In order to overcome the escapement of Capital Gain Tax on such transactions, Section 50C was introduced in the Statute, so as to at least adopt the market value of the State Revenue Authority as the sale consideration for the purpose of compu....