AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 591
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....2021. The assessment was framed by the Assistant Commissioner of Income Tax, Non-Corporate Circle-2, Coimbatore, for the relevant assessment year 2016-17 u/s. 143(3) of the Act vide order dated 23.10.2018. 2. The only issue in this appeal of the assessee is against order of the PCIT assuming jurisdiction u/s. 263 of the Act and revising assessment framed by the Assessing Officer u/s. 143(3) of the Act, wherein the Assessing Officer has considered the issue of sale consideration of immovable property sold within the scope of section 50C of the Act and hence, the assessment order is neither erroneous nor pre-judicial to the interests of the revenue. For this issue, the assessee has raised various grounds which are argumentative and exhaust....
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....ng that total fair market value of the property as per sale deed dated 25.04.2016 was Rs. 3.20 crores i.e. Rs. 80 lakhs per document and purchasers of the respective property have paid stamp duty on the basis of purchase value mentioned in the sale deed and nothing over and above has been charged by the Sub-Registrar and has not over-valued the property, over and above what was declared in the sale deed at Rs. 3.20 crores i.e., Rs. 80 lakhs per document. But, the PCIT was not convinced and according to him, stamp valuation authority has determined value of the property at Rs. 6.40 crores i.e, Rs. 1.60 crores as against each sale deed, as against sale value adopted by the assessee at Rs. 80 lakhs. The PCIT noted that as per section 50C of th....
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....id a sum of Rs. 1.00 lakhs as stamp duty and further a sum of Rs. 4,60,000/- was paid on account of proper / deficit stamp duty, that means, the assessee has paid Rs. 5,60,000/- as stamp duty on sale deed of Rs. 80 lakhs. Similarly, in respect to other three sale deeds, i.e. 383, 385 and 382 of 2016, stamp duty of Rs. 5,60,000/- was paid for each and there was no deficit stamp duty, whereby the Registrar of Stamp has calculated more than Rs. 80 lakhs per transaction. Apart from this, the learned counsel for the assessee took us through certificate issued by stamp valuation authority and enclosed in assessee's paper book at pages 4 to 30 and as per certificate issued by the Registration Department 'TNREGINET' and certificate issued on 10.02.....
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....n of law is very clear that provisions of section 50C has to be interpreted in the cases of sale consideration noted and which is accepted by the Sub- Registrar. Once, the Sub-Registrar accepts value and registered document provisions of section 50C will not come into play and value as registered by the Sub-Registrar has to be accepted as sacrosanct for the purpose of section 50C of the Act. Apart from this, the learned counsel for the assessee also relied on the judgement of the Hon'ble Madras High Court in the case of CIT Vs. Smt. Padmavathi in T.C.A No.350 of 2020 vide order dated 06.10.2020. 7. On the other hand, the ld. CIT DR stated that once there is ambiguity and certificate of encumbrance on the subjected property generated ....
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....tamp duty in respect of such transfer, the value so adopted or assessed (or assessable) shall, for the purpose of section 48, be deemed to be the full value of the consideration received or accruing as a result of transfer." 9. The mandate of provisions of section 50C is very clear and states that value adopted or assessed by the stamp valuation authority is to be deemed, for and from assessment year 2003-04 is to be full value of consideration u/s. 50C of the Act. Sub-section (1) of section 50C of the Act, envisages a situation where consideration received or accruing as a result of transfer by the assessee of capital asset , being land, building or both is less than value adopted or assessed by any authority of State Government i.e sta....
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....only on this aspect regarding the sale consideration paid by the assessee for purchase of the immovable property and the source of funds. The assessing officer has noted that the sale consideration paid by the assessee was Rs. 41,50,000/- and she has paid stamp duty and other expenses of Rs. 5,75,000/-. The source of funds was verified and the assessing officer was satisfied with the same. The PCIT while invoking his power under Section 263 of Act, faults the assessing officer on the ground that he did not make proper enquiry. It is not clear as to what in the opinion of the PCIT is 'proper enquiry'. By using such expression, it presupposes that the assessing officer did conduct an enquiry. However, in the opinion of the PCIT, the e....