2026 (1) TMI 1041

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.... the case are that the assessee had filed his return of income for A.Y. 2012-13 on 20.10.2012 declaring income of Rs. 79,34,510/-. The assessee had disclosed long term capital gain of Rs. 75,54,388/- on sale of an immovable property with other co-owners. In the course of assessment, the AO found that the sale deed was executed on 30.03.2012 for a consideration of Rs. 4,66,66,000/-. However, the stamp duty was paid on jantri value of Rs. 5,83,26,531/-. The AO, thus, found that there was short disclosure of sale proceeds to the tune of Rs. 1,16,60,531/- being the difference between the jantri value and the sale deed amount. The difference was treated as deemed income u/s.50C of the Act and proportionate amount of Rs. 20,03,000/- was added in ....

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.... the assessee submitted that the assessee had accepted the addition of Rs. 2,00,300/- made u/s.50C of the Act in order to avoid litigation. However, there was neither concealment of income by the assessee nor any inaccurate particulars of income was furnished in the return of income. All the facts relevant to the transactions were duly disclosed. Merely because the difference between the sale consideration as per sale deed and the stamp duty value was treated as deemed income of the assessee u/s.50C of the Act, this does not attract any penalty u/s.271(1)(c) of the Act. According to the Ld. AR, no penalty u/s.271(1)(c) of the Act can be imposed on the deeming provision where the addition is made u/s.50C of the act. In this regard, he has pl....

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....the valuation officer for valuation of property u/s 50C(2), the AO made an addition of Rs. 2,01,30,880/- u/s 50C of the act on the basis of valuation officer report, the assessing officer determined long term capital gain after reducing Rs. 67,58,003/- which the assessee has already disclosed as long term capital gain. On the analysis of the provisions of section 50C, we observed that section 50C is a deeming provision to tax the difference as capital gain where the consideration received as a result of transfer of capital assets, being land or building or both if less than the value adopted by the stamp valuation authority. It is only on account of deeming provisions of section 50C, the AO has made the addition after considering the valuat....