2022 (11) TMI 1368

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see filed his return of income on 22.08.2019 declaring income of Rs. 17,42,000/-. While processing the return of income filed by the assessee under section 143(1) of the Act, the Centralised Processing Centre (CPC) Bangalore found that in the year under consideration, the assessee had sold an immovable property. It was found that the stamp valuation authority determined the value of the property in excess of the declared sale consideration. Accordingly, invoking the provisions of section 50C(1) of the Income Tax Act, 1961, the CPC made adjustment of Rs. 5,07,000/- to the income of the assessee, being the difference between the declared sale consideration and the value determined by the stamp valuation authority for stamp duty purpose. Thoug....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction;" 5. On a conjoint reading of section 143(1)(a)(ii) along with Explanation it becomes very much clear that the addition under section 50C(1) cannot be in the nature of incorrect claim as provided in Explanation to section 143(1)(a)(ii) of the Act. This is so because, section 50C has to be read as a whole and cannot be restricted to sub-section (1) alone. It is fairly well settled, a deeming provision has to be taken to its logical end. Undoubtedly, section 50C is a deeming provision. Though, sub-section (1) of section 50C provides for substituting th....