Mohammed Khalid Habib Parihar Vs ITO (ITAT Mumbai)
ITAT Mumbai held that adoption of value of land as determined by the Stamp Duty Authority without referring the valuation to Valuation Officer u/s. 50C of the Income Tax Act unjustified. Accordingly, matter restored for de novo adjudication.
Facts- During scrutiny assessment, it was observed that the assessee has sold a jointly owned immovable property. As per the assessee in the said property, he had a 40% share. It was further noticed that the assessee has received a sum of Rs. 2,40,00,000 as the sale consideration. On examination of the agreement of sale, it was noticed that the market value of the property sold by the assessee was ascertained by the Stamp Duty Authority at Rs. 7,40,65,970, whereas the sale consideration of the said property is shown at Rs. 6 crore. Since the assessee claimed to have a 40% share in the ownership of the property, accordingly the sale consideration to the share of the assessee comes to Rs.2,85,86,388. However, the assessee has taken the sale value at Rs.2,40,00,000. Since there was an undervaluation of the sale consideration by an amount of Rs.45,86,388, considering the provisions of section 50C of the Act. AO added the difference to total income as long term capital gain u/s. 50C of the Act.
