Case Law Details
Harivadanbhai Maganlal Patel Vs ITO (ITAT Surat)
ITAT Surat held that fair market value (FMV) by the registered valuers is determined after taking into account all the relevant factors like size, shape, situation, location, utility, future potentiality, etc. accordingly, the same cannot be ignore.
Facts- The assessee is an individual. The four co-owners had sold immovable properties at Rs.3,14,17,500/- in which assessee’s share is shown at Rs.62,83,500/-. On going through the sale deed, the assessing officer noted that stamp duty payment is shown at Rs.15,39,500/- which means that the property was valued at Rs.3,14,17,500/- by the Stamp Duty Value Authorities.
The assessee was holding 1/5th share in the property and hence, the deemed sale consideration in the hands of assessee, as per the provisions of section 50C of the Act comes to Rs.62,83,500/- instead of Rs.32,00,100- shown by the assessee. Therefore, after recording reason for assessment and obtaining approval of Addl. CIT, Range-1(3), Surat, notice u/s 148 of the Act was issued on 06.05.2016 requesting assessee to file a return of income for A.Y 2013-14 within 30 days of receipt of the notice.
During the course of assessment proceedings, it was noticed that the assessee has entered into one more immovable property transaction during the year under consideration. On verification of return of income filed, it is noticed that the assessee has not considered the entire sale consideration for taxation purpose. Since the assessee failed to furnish the details/supporting evidences to prove his claim, a show cause notice was issued on 20.07.2017.
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