TaxTMI 
TaxTMI 
2024 (1) TMI 692
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....No. ITBA/NFAC/S/250/2023-24/1053478087(1), dated 2/6/2023 arising out of the order passed U/s. 143(3) of the Income Tax Act, 1961 [the Act] for the AY 2016-17. 2. Briefly stated the facts of the case are that the assessee, being an individual, Director in M/s. VTC Engineering Pvt Ltd., is deriving income from salaries, capital gains and income from other sources, filed his original return of income for the AY 2016- 17 on 29/4/2017 admitting the total income of Rs. 54,72,850/-. The return was summarily processed U/s. 143(1) of the Act on 14/6/2017. Subsequently, the case was selected for scrutiny under CASS to verify the following reasons viz., (i) deduction / exemption from capital gains and (ii) investment in immovable property. Thereaf....
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....he provisions of section 50C(3) of the Act while deciding the sale consideration and thereby partly allowed the appeal filed by the assessee. The Ld. AO as per the directions of the Ld. CIT(A), referred the matter to the Ld. DVO wherein the Ld. DVO submitted his report on 21/4/2022 determining the value of the property at Rs. 8,23,96,160/- as on 31/1/2016. Adopting the value arrived at by the Ld. DVO, the Ld. AO computed the share of income of the assessee and passed the consequential order dated 12/10/2023 by granting a relief of Rs. 1,76,56,420/- based on the DVO report as against the original addition made by the Ld. AO. Aggrieved by the directions in the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal by rais....
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....e. On this issue, the Ld. AR argued that the case was selected for limited scrutiny for the purpose of examining the exemption / deduction claimed by the assessee. The Ld. AR further submitted that the Ld. AO has travelled beyond his jurisdiction. Further, the Ld. AR also submitted that the assessee has entered into an agreement on 30/12/2015 wherein the sale consideration has been determined and an advance amount of Rs. 1.50 Crs vide Cheque No. 915393, dated 14/8/2014 was received by the assessee. The Ld. AR therefore pleaded that as on the date of agreement, wherein a substantial amount of sale consideration has been partly received by the assessee, the SRO value, as per the provisions of section 50C of the Act, on the date of registratio....
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....in contention of the Ld. AR is that when the agreement to sell the property has been entered into on 30/12/2015 by receiving a part sale consideration of Rs. 1.50 Crs on 14/8/2014 the same shall be deemed to be the sale consideration accepted by the vendor. Section 50C(1) of the Act is reproduced below for reference: "50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or asses....
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....d the date of registration for transfer of the capital asset are not the same. The value adopted for the stamp duty valuation purposes as on the date of agreement shall be taken for the purpose of computing the full value of consideration for such transfer. Further, the second proviso also stipulates that where the amount of sale consideration, or a part thereof has been received by an account payee cheque or through banking channels, the first proviso to section 50C(1) shall be applied in those cases. In the instant case, we find that the agreement has been entered into on 30/12/2015 and the part consideration has been received on 14/8/2014. Therefore, we find merit in the argument of the Ld. AR that the provisions of section 50C of the Ac....