Nasa Agro Industries Private Limited Vs DCIT (ITAT Amritsar)
In , the assessee filed an appeal before the ITAT Amritsar against the order of the Commissioner of Income Tax (Appeals)-NFAC for Assessment Year 2012-13 arising out of reassessment proceedings under Sections 143(3)/147 of the Income Tax Act, 1961.
The assessee challenged the reassessment proceedings and the application of Section 50C to transfer of leasehold rights in land and building. The assessee also raised a grievance regarding denial of hearing through video conference.
The original return was filed on 15.09.2012 declaring income of Rs.19.52 lakhs along with long-term capital gains of Rs.34.15 lakhs on sale of land. The case was selected for scrutiny under CASS on issues relating to Section 14A and mismatch between capital gains disclosed and property sale reported in AIR. After examination of records and submissions, the original assessment was completed with additions relating to interest disallowance, indirect expenses and machinery scrap.
Subsequently, the Assessing Officer received information from the ITO, Bikaner stating that the stamp duty valuation of the leasehold land and building sold by the assessee at Bikaner was Rs.3.80 crore, whereas the assessee had disclosed sale consideration of Rs.1.95 crore. The assessee explained that Section 50C was not applicable because the transferred asset was leasehold property.
