Case Law Details
Ranjita Rangnath Mhatre Vs ITO (ITAT Mumbai)
ITAT Mumbai held that adoption of stamp duty valuation invoking provisions of section 50C of the Income Tax Act without making reference to District Valuation Officer (DVO) unsustainable. Accordingly, matter remanded for de novo proceedings.
Facts-
The assessee is an individual and is a housewife dependant on her son. During the year under consideration the assessee relinquished her share of 14,28% in the hereditary rights in a land inherited from her father in favour of her brother Shri Anil Krishna Kawale in lieu of which she received a sum of Rs.8,00,000 towards her share.
The assessee did not file the return of income for the reason that the land sold is an agricultural land. AO issued a notice u/s. 148 based on the information available in the ITB portal. The assessing officer was of the opinion that the value of the asset transferred is Rs.1,92,87,500 as per the stamp duty valuation and accordingly invoked the provisions of section 50C. AO held that 54% of the land is not used for agricultural purposes and therefore would fall within the definition of capital asset u/s. 2(14) of the Act. Accordingly, AO made an addition of Rs.14,87,298.
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