TaxTMI 
TaxTMI 
2026 (1) TMI 686
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....dated 07.06.2020 of Learned Assessing Officer/Assessment Unit, CPC, Bangaluru (hereinafter referred to as "Ld. AO") passed under section 143(1) of the Act for assessment year 2019-20. 2. Brief facts of the case are that assessee filed return of income on 25.07.2020 declaring total income of Rs. 12,15,528/-. Order passed under Section 143(1) of the Act dated 27.10.2020 was passed by Ld. AO making adjustment of Rs. 14,68,000/- under the head "Long Term Capital Gains" on account of adopting stamp duty value instead of sales consideration of immoveable property sold. 3. Against order dated 06.07.2020 of Ld. AO, the appellant/assessee filed appeal before Ld. CIT(A) which was partly allowed vide order dated 30.12.2024. 4. Being aggrieved....
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....se and in law, the JCIT(A) has erred in not appreciating that the scope of disallowance/adjustment under section 143(1) is very limited. An issue which is debatable outside the scope of purview of section 143(1) of the Act." 5. Learned Authorized Representative for the appellant/assessee submitted that Ld. CIT(A) failed to appreciate that the addition of capital gain has a beyond scope of section 143(1) of the Act. Addition of Rs. 3,46,97,520/- on account of capital gain is contrary to section 50C of the Act. Reliance was placed on order dated 17.05.2023 in ITA No,2200/Del/2022 in the case of Shankar Dayal HUF vs. ADIT. Order dated 12.03.2025 in ITA No.5292/Del/2025 in the case of Amit Sabharwal, Delhi wherein it was held that adjustment....
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....nce of deduction claimed under ^69[section 10AA or under any of the provisions of Chapter VI-A under the heading "C.- Deductions in respect of certain incomes", if the return is furnished beyond the due date specified under subsection (1) of section 139; or ITA No. 1024/Del./2022 AY: 2019-20 (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return:" 6. No doubt, in the present case adjustment has been made under sub-clause (ii) to section 143(1)(a). The expression "incorrect claim apparent from any information in the return" has been explained under Explanation to section 143(1)(a) of the Act and reads as under: "Explanat....
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....in case the value determined by the DVO is lower than the stamp duty value, the value determined by DVO has to be considered for computing capital gain in terms with sub-section (3) of section 50C. Therefore, sub-section (1) to section 50C cannot be considered in isolation. By making an adjustment of the nature contemplated under sub- section (1) to section 50C, that too, by CPC, the Department takes away a valuable statutory right given to the assessee to object to the value determined by stamp valuation authority. 8. Therefore, such type of adjustment, in my considered opinion, cannot be made under section 143(1)(a) of the Act. This is so because, at the stage of processing of return under section 143(1)(a), if such an adjustment....
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....t the appellant has submitted that the addition has been made by the Ld. AO in respect of the difference of higher stamp duty value and consideration paid without referring the matter to the DVO and has submitted that the Ld. AO was duty bound to refer the matter to DVO in accordance with the decisions of the jurisdictional High Court of Calcutta in the case of Sunil Kumar Agarwal vs. CIT [2014] 272 CTR 332 (Cal). In the said decision, the Hon'ble High Court has held that "As a matter of course, in all such cases, the AO should give an option to the assessee to have the valuation made by the DVO. The valuation made by the DVO is required to avoid miscarriage of justice. The legislature did not intend that the capital gain should be fixe....