TaxTMI 
TaxTMI 
2025 (9) TMI 575
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....CIT(A)/NFAC erred in dismissing the appeal. 6. The CIT(A)/NFAC erred in upholding the assessment of income chargeable to tax u/h capital gains by CPC at Rs. 31,92,84,693. 7. The CIT(A)/NFAC erred in upholding the assessment of total income by CPC at Rs. 32,31,30,100. 8. The CIT(A)/NFAC erred upholding the demand of Rs. 6,08,19,592 determined by CPC. 9. Any other grounds that may be urged at the time of hearing." 3. Brief facts of the case are that, the assessee filed his return for the assessment year 2019-2020 on 24.10.2019 declaring total income of Rs. 11,49,92,940/-. The return of income was processed u/sec. 143(1) of the Income Tax Act, 1961 on 28.02.2020 and determined the total income of assessee at Rs. 32,31,30,100/- by making addition of Rs. 20,81,37,160/- under the Head "Income from Capital Gain" towards difference in sale consideration for sale of property and stamp duty value of the property as on the date of registration as per the provisions of sec. 50(C) of the Income Tax Act, 1961. 4. The assessee challenged the addition made by the Assessing Officer towards computation of capital gain by considering deemed consideration as p....
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....Mumbai vs., ADIT-CPC, Bengaluru in ITA.No.1647/ Mum./2023, Order dated 25.10.2023 submitted that, the issue of consideration of deemed consideration as per the provisions of sec. 50C of the Act is a disputed issue and the party has certain rights to object like request for referring the case to the DVO. Therefore, the CPC cannot make addition without giving proper opportunity to the assessee. Learned Counsel for the Assessee referring to the facts of the present case submitted that, although, the learned CPC has given an opportunity to the assessee as claimed by the learned CIT(A) in it's order, but, the assessee could not notice the opportunity provided by the learned CPC and, therefore, could not respond to the notice issued by the Assessing Officer/CPC. Further, the issue of additions towards capital gains on the basis of deemed consideration as per the provisions of sec. 50C is not a prima facie adjustment which can be made while processing the return of income. Further, the subject property transferred by the appellant is under litigation before various Courts including before the Hon'ble High Court for the State of Telangana by way of Writ Petition, which challenges the valid....
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....ned Counsel for the Assessee claims that, there is a dispute on the value of the property, but, what is disputed before the Court of Law is the ownership of the property, but, not the value. Since there is no dispute about the fair market value of the property as determined by the stamp duty authority, the Assessing Officer has rightly made the addition as per the provisions of sec. 50C of the Act and further, the learned CIT(A) after considering the relevant facts, has rightly decided the issue. Therefore, she submitted that, the order of the learned CIT(A) should be upheld. 8. We have heard both the parties, perused the material on record and the orders of the authorities below. There is no dispute with regard to the fact that the appellant has sold the immovable property admeasuring 8 acres 29.88 guntas for a total sale consideration of Rs. 21,86,72,000/- and the stamp duty value of the said property as on the date of registration was at Rs. 42,67,68,750/-, on which, appropriate stamp duty has been discharged by the buyers. The appellant has filed return of income and disclosed the relevant capital gain from sale of property by adopting the consideration as per the sale deed ....
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....s in respect of any arithmetical error in the return or an incorrect claim, if such incorrect claim is apparent from any information in the return. On a plain reading of sec. 143(1) of the Income Tax Act, 1961, the case of the assessee falls under 143(1)(a) of the Income Tax Act, 1961, i.e., an incorrect claim, if such incorrect claim is apparent from any information in the return because, while filing return of income for any assessment year, the assessee shall furnish relevant details including computation of capital gains from sale of property in light of consideration received as a result of transfer and also deemed consideration as per the provisions of sec. 50C of the Income Tax Act, 1961. Once the deemed consideration is apparent from the information available in the return which is further supported by the information furnished in the AIR information i.e., sale deed, then, in our considered view, the arguments of the Counsel for the Assessee that, it is a debatable issue and can be considered only after deliberations with relevant facts, is incorrect and cannot be accepted. Therefore, to this extent, in our considered view, the arguments of the Learned Counsel for the Asses....
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....on filed before the Hon'ble High Court for the State of Telangana at Hyderabad and argued that, there is a dispute on the title of the property before the Civil Judge of Judicature and also there is a dispute on the value of the property before the Hon'ble High Court for the State of Telangana at Hyderabad, where the assessee has sought relief for refund of excess stamp duty collected by the Stamp Duty Authority for transfer of the property. Learned Counsel for the Assessee had also referred to Certificate issued by the Sub-Registrar, Gandipet, Ranga Reddy District dated 09.06.2022 and argued that, the very same Sub-Registrar who has collected the stamp duty on the value of the property of Rs. 42,67,68,750/-, has issued a Certificate with reference to the very same survey numbers of the property which has been sold by the assessee and stated that, the stamp duty value of the property as on 18.04.2018 was at Rs. 2 crores per acre and if we consider the said value to the total land sold by the assessee, the value works out to Rs. 42,88,43,750/- only. If we consider the above value, the assessee is having only 50% share in the property and the share of the assessee's consideration wor....