TaxTMI 
TaxTMI 
2022 (8) TMI 777
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....nd in the circumstances of the case and in law, the Ld. CIT(A) has not mentioned the evidence produced by the assessee to establish that some duty was paid on the sale of the 2500 Sq. Mts. of land Shri. Azim Premji in the year 1991 and that the transfer of 2500 Sq.Mts. of land had already taken place in the year 1991 to Shri. Azim Premji. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) failed to appreciate that the assessee has not produced any evidence to establish that the capital gains relating to the sale of 2500 Sq.Mts had been offered for taxation earlier either in the assessment year 1991-1992 or any subsequent assessment year 4. On the facts and in the circumstance of the ease and in law, the Ld. CIT(A) failed to appreciate that the Assessing Officer rightly invoked the provisions of section 50C and taxed the value determined by the Stamp Valuation Authority of RS.7,51,61,000/- to be the consideration accruing to the assessee on 'sale of the immovable property vide agreement dated 05.01.2011." 3. Mr. Walimbe takes us to the CIT(A)'s detailed discussion reversing the assessment finding making the impugned addition as follows: ....
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....eement, it was mentioned that the balance 777.2 sq. mts land was sold for the total consideration of Rs. I crore only. Further, as per the sale agreement dated 17.1.1991 ,2500 sq. mts land out of total land of 3277.2 sq. mts was sold. However no stamp duty was paid as the sale was made by way of a sale agreement on Rs 100/- stamp paper. Hence, at the time of appellant's sale deed of balance 777.2 sq. mts, the Govt. Reg. Authority had adjudicated out sale deed and hence stamp duty was required to be paid on entire portion of land of 3277.2 sq. mts on that day's Government valuation of Rs. 7,51,61,000/- and the same was mentioned in the Index-II. The fact that the appellant had sold the balance land of 777.2 sq. mts for total consideration of Rs one crore only was clearly mentioned again and again in many paras of the sale deed. The sale consideration received of Rs. One crore was as per the prevailing rate on that day which was shown in his Income tax Return for the A.Y. 2011-12, hence, there was no violation of provision u/s 50C of the Income tax Act, 1961. 2.1.1 Thereafter, the AO asked the legal heir of the assessee to produce documentary evidence to support the sale o....
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....ntred on the sale of an immovable property situated at S. no. 10, Hissa No.31, CTS 1928 (P), Yerangal on Madh Island near Mumbai. The property originally consisting of land admeasuring 3277.2 sq. mtrs. together with outhouse, poultry shed etc. was purchased in 1962 by one Mrs. Shiladevi Purshottam Raje being the mother of the assessee. That lady sold a part of the property viz. land admeasuring 2500 sq. mtrs out of total 3277.2 sq. mtrs. to Mr. Azim Premji by executing an agreement to sale on 17 January 1991. The assessee was thus left with only 777. 2 sq. mtrs. of land. Mr. Azim Premji in tum sold his portion of 2500 sq. mtrs. of land to one Mr. RYANRUPEN PATEL (minor) represented by his natural guardian MR. RUPEN PREMJI PATEL by an agreement to sale dated 16 May 2008. This agreement was registered with Sub-Registrar of Assurances, Mumbai bearing registration no. BDR 12 dated 15/07/2009. Thus Mr. RYAN PATEL now became the new owner of 2500 sq. mtrs. of land while the balance 777.2 sq. mtrs. remained with the assessee. Mr. RYAN PATEL purchased this balance 777.2 sq. mtrs. of land from the assessee by a deed of conveyance dated 5 Jan 2011 Jar a total price of Rs.1 crore. The Sub Reg....
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....rty (out of land admeasuring 3277.2 sq. mtrs) with the vendor who. has agreed to. sell and convey that portion. i.e. 777.2 sq. mtrs. to. the purchaser. 4) On page 7 and page 8 it is mentioned that Mr. Azim Premji later an sold that 2500 sq. mtrs. of land which he purchased in 1991 to. Mr. Ryan Patel vide agreement dated 16 may 2008 5) On page 9 clause (m) there is again declaration of the fact that there remains: a balance portion of land admeasuring 777.20 sq. mtrs. with the vendor. 6) On page 9 clause (n) it is clarified that the purchaser had paid full stamp duty of the portion of property admeasuring 2500 sq. mtrs. vide an agreement dated 16 May 2008. Therefore in payment of stamp duty and in calculation thereof in respect of the present document the adjustment of the stamp duty already paid is required to be taken. Now let us come to the averments which the assessing officer has relied upon and see how they are erroneous. In Para 7.1 on page 5 of her order the A. 0. has reproduced the extract of clause (c) of the conveyance deed and drawn the conclusion in Para 7.1.1 that it speaks about only an agreement to sale but no actual sale deed was executed. She then pr....
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....ated hereinbefore that it was only the transfer of the balance 777.2 sq. mtrs. which was the subject matter of transfer on 05101 I 20 11 and hence if at all, the Assessing Officer could adopt only the proportionate stamp duty value of 777.2 sq. mtrs. i.e. Rs. 1,78,24,7071-jor computation of capital gain. It is interesting to note that she did reach that conclusion in Para 7.3 of her order but ultimately tried to play it safe by adopting the stamp duty value of the entire property instead. The assessee therefore prays that your honour may direct the assessing officer to re-compute the capital gain by adopting the stamp duty value of Rs.1, 78,24, 7071 - as the sale consideration accruing and after giving the benefit of indexation and credit for TDS of Rs. 15,00,0001- subject to verification as per law." Findings 2.3 I have carefully considered the submission of the appellant in light of the facts of the case. A careful perusal of the sale deed dtd. 05.01.2011 shows that the appellant has actually transferred 777.2 square meters of the land to the purchaser by way of the present conveyance deed. Therefore the AO is directed to adopt the proportionate stamp duty value of Rs 1,....