Stamp duty value considered as full value of consideration if amount received via bank

Jagdish Dhanajirao Jadhav Vs ITO (ITAT Pune)

In the given case, the assessee is an individual engaged in the business of sale of construction material and labour contract in the name of M/s. Kamal Dhanu Industries, filed it’s return of income declaring total income of Rs.7,38,170/- for A.Y. 2014-15. The case was selected for limited scrutiny under CASS with the reason “Sale consideration of the property in ITR is less than the sale Consideration of property reported in AIR” and, accordingly, a notice u/s. 143(2) of the Income Tax Act, 1961 by the Assessing Officer and the same was duly served upon the assessee. The Ld.AR of the assessee stated that during the year 2013-14 assessee along with his brother had sold an immovable property amounting to Rs.77,29,177/- whose consideration was received in F.Y. 2007-08 & 2008­09. The valuation of the property as per stamp valuation authority was Rs.4,63,79,591/-. The Assessing Officer applied sec 50C of the Act. The difference of the consideration received and the stamp valuation authority; value was Rs.3,86,50,414/-. As the assessee was owner of half portion of the property, half of the amount i.e. Rs.3,86,50,414/2 = Rs.1,93,25,207/- (as said land property belongs to one of his brothers also and in this regard the assessee stated that half of the difference amount should be added to in the hands of his brother) was added to the income of the assessee.

It is evident that the benefit of first proviso would be allowed only if the condition as stipulated in second proviso is satisfied. In other words, the stamp value on the date of agreement to sell shall be considered as full value of consideration only if the amount of consideration or part of such consideration was received by the assessee through banking channel on or before the date of agreement for transfer. This issue, therefore, needs detailed factual verification.

Having said that ITAT find, the applicability of the first proviso to Section 50C(1) retrospectively should be determined by the Assessing Officer, therefore, ITAT are of the considered view that the matter needs to be restored to the file of Assessing Officer for adjudication as stated hereinabove. Therefore, ITAT set aside the order of the Ld. CIT(Appeals) and restore the matter to the file of Assessing Officer.

In the result, appeal of the assessee is partly allowed for statistical purposes.

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