2019 (3) TMI 1889

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....eletion of addition of Rs. 2,31,95,180/- by Ld. CIT(A) as made by the AO under section 50C of the Act on the ground that sale consideration declared by the assessee is less than the value as per stamp duty valuation authority. 3. The facts in brief are that during the year the assessee sold a plot of land located at Oshiwara, Ram Mandir Road, Goregoan West, Mumbai, measuring about 1359.62 meters to Sadguru Corporation Services Pvt. Ltd. for a consideration of Rs. 4,89,46,320/- whereas the stamp valuation of the said property was Rs. 7,21,41,500/-. The said property which was purchased by the assessee in financial year 1981-82 for a consideration of Rs. 2,93,183/-. In the case of the assessee was selected under scrutiny proceedings . The ....

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....,89,46,320/- while taking into account the fair market value of Rs. 7,21,41,500/- as per AIR information. The appellant company contested that this suomoto value of Rs. 7,21,41,500/- disputed by the appellant is unfair and therefore requested this office to refer to valuation cell to arrive at Fair Market Value and accordingly a request has been made to the AO on 16.02.2016 and a final report received by this office on 23.06.2016 of the DVO Report dated 13/06/2016 by adopting the fair market value of Rs. 5,15,29,600/-. The difference between the DVO's valuation (Rs. 5,15,29,600/- and the agreement value Rs. 4,89,46,320/- comes to around Rs. 25,83,278/-. Therefore, the estimation of difference worked out by DVO is due to negligence and t....

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....se of Sita Bai Khetan vs. ITO Ward 6(3} : Krishna Enterprises vs. ACIT(ITATMumbai) dated 26-11-2016 S. 50C: If the difference between the sale consideration of the property shown by the assessee and the FMV determined by the DVO u/s 50C(2) is less than 10%, the AO is not justified in substituting the value determined by the DVO for the sale consideration disclosed by the assessee. Sita Bai Khetan vs. ITO (ITAT Jaipur) dated August, 2016 S. 50C: Valuation is a matter of estimation and some degree of difference is bound to be there. If the difference between the stamp duty valuation and the declared sale consideration is less than 10%, addition u/s 50C should not be made. 4. In the light of the abo....