Kavita Samtani Vs DCIT (ITAT Jaipur)
The Income Tax Appellate Tribunal (ITAT) Jaipur Bench recently dismissed an appeal filed by Kavita Samtani, challenging an order by the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal concerned an addition to her income for the 2018-19 assessment year under Section 50C of the Income Tax Act, 1961, which pertains to the valuation of property sales for tax purposes.
Case Background
The initial assessment order for the 2018-19 fiscal year was issued on December 31, 2019. In it, the Assessing Officer (AO) determined that Samtani’s total income should include an additional Rs. 2,40,000, citing suppressed sale values on property transactions. As per the AO’s investigation, the sale of a property registered at a value higher than the declared amount led to a discrepancy under Section 50C.
According to the assessment order, Samtani reported a long-term capital gain on a property sale, declaring Rs. 21 lakh as the consideration. However, the stamp duty valuation, or the “DLC rate,” set by the Sub-Registrar in Bhilwara valued the property at Rs. 23,40,000. The AO interpreted this difference as an undisclosed income, invoking Section 50C, which mandates the use of DLC rates for property sale calculations unless evidence justifies a lower figure.
