Case Law Details

Case Name : C.I.T. Vs Madan Teatres Ltd. (Calcutta High Court)
Appeal Number : GA No. 684 of 2013, ITAT No. 62 of 2013
Date of Judgement/Order : 14/05/2013
Related Assessment Year :
Courts : All High Courts (4749) Calcutta High Court (188)

The assessee sold the property at a sum of Rs.2,51,50,000/- For the purpose of stamp duty, however, the value was estimated at a sum of Rs.5, 19,77,000/- and on that basis the stamp duty was realized. During the assessment, it was found that the assessee had disclosed the sale price at a sum of Rs.2,51,50,000/-. The Assessing Officer fixed the sale price at a sum of Rs 5,19,77,000/ – and started proceedings under Section 271(1) (C). Penalty for a sum of Rs.30,09,989/-was imposed.

The assessee preferred an appeal with CIT(A). CIT(A) allowed the appeal and set aside the order imposing penalty indicated above.

The Revenue preferred an appeal. The learned Tribunal dismissed the appeal holding, inter alia, as follows:

It is only on account of deeming provisions of s. 50C, the AO has made the addition by adopting the sale consideration of Rs. 5,19,77,000, being the value adopted for the purpose of stamp valuation. The Revenue has also not shown as to how the assessee could he held to have actually received this amount which is in excess of the amount of Rs. 2,51. 50,000. It has also not been shown as to whether any corresponding addition has been made in the hands of the buyer. In any case, the issue is also now squarely covered by the decision of the Co-ordinate Bench of this Tribunal in the case of Renu Hingorani (supra). In the circumstances, respectfully following the decision of the Co-ordinate Bench of this Tribunal in the case of Renu Hingorani (supra) as also on account cf the fact that the Revenue has not been able to dislodge the findings of the learned CIT(A) that the bona fides of the assessec are genuine, the findings of the learned CIT(A) stand confirmed. In the circumstances, the alppeal of the Revenue is dismissed.

Mr. Niaumuddin, learned advocate appearing for  Revenue, contended that the assessee had a choice to dispute the valuation on the basis of the deemed value, but the assessee did not take that opportunity. The assessee had a choice or he could have litigated. The fact remains that the actual amount received was offered for taxation. It is only on the basis of the deemed consideration that the proceedings under s. 271(1)((c) started. The Revenue has failed to produce any iota of evidence that the assessee actually received one paise more than the amount shown to have been received by him.

We are, as such, of the opinion that there is no scope to admit the appeal since the same does  raise any question of law, substantial or otherwise.

The appeal is, therefore, rejected.

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  1. g.balakrishnan says:

    Good the Revenue advocate rightly assisted the assessee by providing the provision of deemed value, and revenue need to show the excess amount realized, that is the duty of any advocate to the courts as court officer, though he might be on panel of revenue that does not mean he has to fail in his duty to court. Kudos to adv . Niamuddin. that is how obligations of any governance should be by any government that is the principle of rule of law. will the governments and public servants would so behave with accountability is a millions of $ question today!

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