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Can the valuation done by any authority of the State Government for the purpose of payment of stamp duty in respect of land or building be taken as actual sale consideration received by the purchaser?
Case Law Details
- Case Name
- CIT Vs. Chandni Buchar (Punjab & Haryana High Court)
- Appeal Number
- Only available for paid members
- Courts
- All High Courts, Punjab and Haryana HC
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CIT Vs. Chandni Buchar (2010) 323 ITR 0510 (Pun.& Har.)
The Assessing Officer added the difference between purchase price disclosed in the sale deed and purchase price of the property adopted for the purpose of paying the stamp duty to the total income of the assessee as income from unexplained sources. The Commissioner of Income-tax (Appeals) deleted this addition by holding that section 50C is a deeming provision for the purpose of bringing to tax the difference as capital gain.
Further, he also held that in the absence of any legally acceptable evidence, valuation done for the purpose ...
See Mumbai High Court for the Contrary view in Bhatia Co-Hsg.Soc, Where actual consideration was 3.5 Cr against the stamp duty valuation 0f 15.5 cr. And the Court held it to constitutioally healthy.
2. If one goes to S. 50C, It is open for the AO to accept the apparent consideration. If the stamp duty valuation is more, the AO HAS TO SEND the property for valuation. AO is not free to ipso fact apply the Stamp duty valuation. Sadly , this point was not considered in BOTH THE CASES
50 C is a futile exercise and is creation of some insane babu
Taking the notional sale consideration adopted for the stamp duty purposes by State Govt Registering agency as additional income for tax other than the actual sale consideration as per the sale deed is stretching the taxation provisions unnecessarily.
valuation is for stamp duty is as per general survey of locality & not specific plot / Building. Hence the actual value may differ by lot of reasons eg in case of land – road touch, shape of plot, side (east / South), size of plot, etc