2013 (7) TMI 1197

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....IT DR and Shri Amit Jain, learned counsel for the assessee. The crux of arguments on behalf of the Revenue is that as per section 50C of the Income Tax Act, where the sale consideration is less than the value adopted or assessed by the stamp valuation authority, the value so adopted or assessed shall be deemed to be the full value of consideration received as a result of such transfer. It was also pointed out that in spite of opportunities provided to the assessee by the learned Assessing Officer, the assessee could not furnishe any details regarding cost of acquisition of the land, therefore, the assessment order was supported. On the other hand, the learned counsel for the assessee defended the impugned order by submitting that as per the....

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....s were registered during the year under consideration. It has also been observed that the Assessing Officer failed to prove that the consideration to the tune of Rs. 1,47,63,000/-, Rs.1,05,48,000/- and Rs.41,28,000/- was actually received from the buyers. There is uncontroverted finding in the impugned order that the assessee society is solely engaged for the purposes of development of land and providing the same to its members on cost to cost basis and some of the pieces of land which were not plottable were disposed of to others without development. It was duly explained right from the assessment stage itself by the assessee that since these pieces of land were not fit for plotting were sold by the assessee in earlier years by way of sale....

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.... consideration shown in the agreement was much lower than the value determined by the Registrar with respect to the said land. In the result, difference in the value determined by the stamp valuation authority for stamp duty purposes vis-a-vis the value mentioned in the agreement so mentioned by the assessee was added by the Assessing Officer by invoking the provisions of section 50C. Since the land sold by the assessee was held by it as stock in trade, profit arising therefrom is liable to be taxed as business profit rather than capital gains. Section 50C is applicable while computing the profit on sale of capital asset u/ss 45 to 49 of the IT Act wherein capital gain is computed. However, in the instant case before us, the profit on sa....