Ranganath Ashok Meharwade Vs ITO (ITAT Bangalore)
ITAT Bangalore held that once the sale consideration mentioned in the sale deed differs from the stamp value adopted by the officer, AO has to adopt the procedures contemplated u/s. 50C of the Act. Accordingly, appeal filed by the assessee dismissed.
Facts- AO based on the information received by him that the assessee had sold an immovable property on 03/02/2015 for a sale consideration of Rs. 22 Lakhs as against the market value for stamp duty purpose at Rs. 54,20,000/-. Therefore AO relied on section 50C of the Act and proposed to treat the market value as the sale consideration for the purpose of arriving the capital gains. AO had treated the market value as sale consideration as per section 50C of the Act as the income from long term capital gains.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that once the sale consideration mentioned in the sale deed differs from the stamp value adopted by the officer, then naturally the AO has to adopt the procedures contemplated u/s. 50C of the Act which was admittedly done by the AO. The argument made by the assessee that the sale was made in continuation of the purchase agreement executed on 07/01/2013, we afraid to accept those arguments for the reason that the said sale agreement was executed by Shri Satyanarayan P. Raibagi whereas the present sale deed was executed by the assessee and therefore the value at the time of executing the agreement by some other party could not be taken as the correct value for the purpose of arriving the capital gains. If the assessee had entered into a sale agreement, assessee can claim the value based on the market value prevailed during that time. But in this case, there is no connection between the agreement executed by Shri Satyanarayan P. Raibagi and the sale deed executed by the assessee, hence we are not accepting the ground raised by the assessee and therefore dismissing this ground also.
