Hemant Vasisht Vs DCIT (ITAT Delhi)
ITAT Delhi held that when the sale consideration as per conveyance deed and circle rates are different, matter must be referred to valuation officer DVO as contemplated in Section 50C(2). Accordingly, AO directed to refer matter to DVO.
Facts- A survey operation was conducted in the premises of the assessee on 16.05.2012 u/s 133A of the Act. The assessee owns 7 storey office complex building having numerous flats at each The ld AO observed that assessee had sold various flats during the year under consideration. These flats were purchased in the year 2006-07. AO observed that the sale consideration reported by the assessee was less than the circle rate determined in terms of Section 50C of the Act. AO worked out differential sale consideration figure (i.e. difference between sale consideration reported in the registration deed and sale consideration as per circle rate) in the sum of Rs. 2,14,50,000/- and added the same to the total income of the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed. Vide the present appeal, the assessee are challenging the confirmation of addition of Rs. 43,20,000/- on account of unexplained cash receipt.
Conclusion- Hon’ble Calcutta High Court in the case of Sunil Kumar Agarwal Vs. CIT held that when the agreed consideration as per conveyance deed and circle rates are different and assessee objects to the adoption of such circle rate, then the ld AO should refer the matter to valuation officer as contemplated in Section 50C(2) of the Act. Thus held that we direct the ld AO to refer the matter to ld DVO and determine/ recompute the capital gains in accordance with the provision of Section 50C(2) of the Act.
