2026 (5) TMI 1755

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....at, the Assessee filed return of income by declaring total income of Rs. 8,01,375/- which has been processed by the CPC, Bengaluru by making addition of Rs. 25,90,200/- towards Long Term Capital Gain and assessed the income of the Assessee at Rs. 30,61,335/- under Section 154 of the Income Tax Act, 1961 ('Act' for short). Aggrieved by the order dated 28/09/2020 passed by the CPC, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 11/07/2025 dismissed the Appeal of the Assessee. 3. The Ld. Counsel for the Assessee vehemently submitted that the Ld. CIT(A) committed error by confirming the order of the CPC, Bengaluru. The Ld. Counsel further submitted that the addition has been made by the CPC, Benga....

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....ing the following adjustments, namely:- (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure 68[or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance 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] t....

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....icted to sub-section (1) alone. It is fairly well settled, a deeming provision has to be taken to its logical end. Undoubtedly, section 50C is a deeming provision. Though, sub-section (1) of section provides for substituting the stamp duty value as deemed sale consideration in place of the declared sale consideration, however, sub-section (2) carves out an exception by providing that if the assessee objects to the stamp duty value, the valuation has to be referred to the Department Valuation Officer (DVO) and 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....