Niket Ravibhai Patel Vs DCIT (ITAT Ahmedabad)
Assessee is an individual filed his Return of Income for AY 2013-14 at Rs.10,98,540/-. During the year consideration, assessee along with other co-owners sold two immovable properties for a consideration of Rs.1,20,60,000/- and Rs.1,85,40,000/-. Assessee’s share in both the properties is 5%, accordingly the assessee shown his share as Rs.6,03,000/- and Rs.9,27,000/- on sale of the immovable properties in his Return of Income. AO found that the stamp duty value of the above-mentioned properties were Rs.3,34,40,600/- and Rs.5,14,78,100/- respectively. A show cause notice was issued to the asssessee to explain that why assessee’s share should not be determined at Rs.16,72,030/- and Rs.25,73,905/- u/s 50C.
It was submitted before AO by assessee that he sold agricultural lands and offered the consideration for taxation. When possession of land was given on 04.12.2-12, it was agricultural in nature and it was converted into Non-Agricultural land vide Collector’s order dated 26-12-2012 and the Sale Deed was registered on 25-02-2013. Since nature of land was agricultural on the date of handling over the possession hence no question of invoking provision of section 50C arises. AO rejected the above contention and made addition of Rs. 27,15,935/- u/s 50C.
Aggrieved from the above, assessee filed appeal before CIT (A) and submitted that that in other Co-owner’s case, AO referred the matter to District Valuation Officer. Hence, same value should be adopted in his case too. But CIT (A) dismissed the appeal and confirmed the addition made by AO.
