Bhupendra Abhimanyu Kukreja Vs ITO (ITAT Nagpur)
The Income Tax Appellate Tribunal (ITAT), Nagpur Bench, heard the assessee’s appeal against the order of the Joint Commissioner of Income Tax (Appeals) for Assessment Year 2016-17. The appeal arose from an assessment completed under Section 143(3) of the Income Tax Act, 1961, in which the Assessing Officer made an addition of ₹8,45,170 under Section 50C while computing long-term capital gains on the sale of agricultural land.
The assessee had sold urban agricultural land situated at Mouza Nara, Nagpur for a sale consideration of ₹60,00,000. The stamp duty value of the property was ₹93,00,000. The assessee objected to adoption of the stamp duty value under Section 50C and submitted a valuation report from a Government Approved Valuer estimating the fair market value at ₹59,31,300. The Assessing Officer referred the matter to the Departmental Valuation Officer (DVO), who determined the fair market value at ₹68,45,170. The Assessing Officer adopted the DVO’s valuation under Section 50C and made an addition of ₹8,45,170 representing the difference between the declared sale consideration and the DVO valuation.
The Commissioner (Appeals) dismissed the assessee’s appeal and further directed the Assessing Officer to compute the long-term capital gain by adopting the stamp duty value of ₹93,00,000 as the full value of consideration. The assessee challenged both the addition and the enhancement before the Tribunal.
