TaxTMI 
TaxTMI 
2020 (9) TMI 367
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.... the Income-tax Act, 1961 (in short 'Act'). Brief facts of the case are that the assessee is an individual having income from business, filed his return of income for the A.Y.2007-08. Having reason to believe that the income chargeable to tax had escaped assessment, the Assessing Officer (AO) issued notice u/s. 148 and in response to which the assessee filed the return of income admitting total income of Rs. 12,21,370/-. The AO found that the assessee has sold the immovable property located at Gopalapatnam Sub Registrar Office, Purushottampuram, Visakhapatnam in Survey, 30/2C admeasuring 1204.5 sq yds of land vide registered document No. 1503 to 1514 dated 5-3-2007 for a sale consideration of Rs. 40,78,000/-. The AO found that SRO v....
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....ntered into an unregistered sale agreement with the buyer Shri M. Ravi Kumar on 7-4-2003 for sale of the pieces of land. He has taken our attention to page No. 46 of the paper book wherein, the advance payment was made to the assessee to the extent of Rs. 19,50,000/- on various dates as under : 02-11-2002 Rs. 3,50,000 By Cheque No. 8118972, dt. 2-11-2002 Union Bank, Gopalapatnam 11-12-2002 Rs. 6,00,000 By Cheque No. 110259 dt.11-12-2002 Visakhapatnam Co-operative Bank, Gopalapatnam 06-2-2003 Rs. 5,00,000 By Cheque No. 110275 dt.06-2-2003 Visakhapatnam Co-operative Bank, Gopalapatnam 10-2-2003 Rs. 5,00,000 By Cheque No. 24654 dt.10-2-2003 Visakhapatnam Co-operative Bank, Gopalapatnam Total Rs. 19,50,000 The assessee ag....
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....nd dismiss the appeal of the assessee. 6. We have heard both the parties and perused the material placed on record. The assessee has registered the sale deed for sale of the property by document No. 1503 to 1514 dated 5-3-2007. However, there was an agreement for sale of the property for a consideration of Rs. 26,51,350/-entered in to by the assessee vide the sale agreement dated 07/04/2003 placed in the paper book, which was also furnished before the AO. Neither the AO nor the Ld. CIT (A) has doubted the genuineness of the agreement. The AO also did not examine the prospective buyer who had entered into the agreement for purchase of immovable property from the assessee, to verify the credentials of the agreement or to elicit the facts wit....
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....i, Visakhapatnam in [I.T.A.No.639/Viz/2013 dated 23-12-2016] directed the AO to adopt the value of the property as on the date of execution of the agreement for capital gains. For the sake of clarity, we extract para No. 12 and 13 of the order of this Tribunal which reads as under : "12. Having heard both the sides and considered materials on record, we find that the A.O. has adopted stamp duty value of the property as on the date of sale deed. The facts relating to the market value as on the date of agreement to sale and as on the date of sale deed is not disputed. The only dispute is whether the stamp duty value as on the date of agreement to sale or sale deed to be considered for the purpose of computation of capital gain. The purpose ....
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....instead of value on the date of execution of sale deed. 13. In the present case, on perusal of the facts available on record, we find that the assessee has entered into a sale agreement in the year 2007 and as on that date, the stamp duty value of the property was less than sale consideration agreed to be paid between the parties. Although, stamp duty value of the property has been changed as on the date of sale deed, for the purpose of determination of deemed consideration u/s. 50C of the Act, stamp duty value of the property as on the date of execution of agreement to sale should be adopted, instead of value on the date of execution of sale deed. Therefore, we are of the view that the A.O. was erred in adopting value of the property as ....