Provisions of u/s 50C of the Income Tax Act is not applicable to buyer of property

ITO Vs Sharan Svadha LLP (ITAT Delhi)

ITAT Delhi held that the deemed valuation of Section 50C of the Income Tax Act cannot be invoked as the said section is applicable in the case of seller of the property only while the appellant is a buyer.

Facts-

The Assessee firm is a Limited Liability Partnership firm engaged in the business of Real Estate Developers and other related activities.

The assessee firm made investment by purchase of property in N- 94, Panchsheel Park, New Delhi for Rs.4,50,00,000/- during the year, which was duly reflected in the sale deed submitted before the Assessing Officer and duly recorded in the books of the assessee firm. The assessee firm paid stamp duty of Rs.72,05,000/- on the property value arrived by the Registrar of Documents for stamp duty value purpose.

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