Amar Das Vs ITO (ITAT Kolkata)
Admittedly the provisions of section 50C are applicable only for capital assets and not for assets held as stock-in-trade. We find that the legislature in its wisdom had introduced a separate provision to adopt the stamp value in respect of assets other than capital assets by introducing section 43CA of the Act in line with provision of section 50C of the Act. But we find that the provisions of section 43CA has been introduced in the Statute by Finance Act, 2013 w.e.f 01.04.2014 meaning thereby, the same is applicable only for assessment year 2014-15 and not earlier. Hence the value determined by the Stamp Valuation Authority for sale of two lands cannot be adopted as full value of consideration. Hence we hold that the action of the ld. AO in this regard as untenable in law. With regard to adoption of purchase cost of lands, the assessee had duly disclosed the total purchase cost in his profit and loss account and had also valued the closing stock of unsold lands thereon. After taking into account the said closing stock of unsold land the profit has been arrived by the assessee and the same has been offered to tax hence there is no reason to make any addition towards sale of lands in the hands of the assessee.
FULL TEXT OF THE ITAT JUDGMENT
1. This appeal by the Assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-Durgapur [in short the ld CIT(A)] in Appeal No. 55/CIT(A)/DGP/2015-16 dated 17.11.2016 against the order passed by the ITO, Ward-1(3), Durgapur [ in short the ld AO] under section 144 R/W 147 of the Income Tax Act, 1961 (in short “the Act”) dated 30.03.2015 for the Assessment Year 2012-13.
2. The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in sustaining the addition of Rs. 9,88,240/- made by the ld. AO, in the facts and circumstances of the case.
3. The brief facts of this issue is that the assessee is an individual, engaged in the business of purchase and sale of lands. This is quite evident from the fact that the assessee had filed his income tax return in ITR-4 in the earlier year. The assessee filed its return of income for the assessment year 2012-13 on 3 1.03.2013 in response to notice issued u/s 148 of the Act. The assessee disclosed taxable income of Rs. 6,99,072/- after claiming deduction under Chapter-VIA of Rs. 1,00,000/-. The details of income disclosed by the assessee are as under:
