Case Law Details
In the instant case, there is a registered sale deed and the consideration mentioned therein has not been proved to be wrong by the AO. The addition has been made invoking the deeming provisions of section 50c of the Act. There is no finding that the actual sale consideration is more than that mentioned in the sale agreement. The appellant had furnished all the relevant documents called for by the AO. The AO has not doubted or disproved the validity of the documents. Thus there can be no case that the appellant has concealed any income or furnished any inaccurate particulars. Therefore, penalty u/s 271(1)(c) of the Income Tax Act, 1061 of Rs.50,26,4961- is hereby deleted.
Detailed Facts and Analysis is as follows :-
1. Brief facts of the case leading to the levy of penalty in this case are as under;
i) During the year under consideration, the appellant has sold 2 pieces of land at Vashivali admeasuring 50,450 sq. mtrs. for a total consideration of Rs.1,71,50000/-, the stamp duty value as per agreement amounts to Rs.992,76,000/-. The appellant had obtained valuation report of the said land from the government approved registered valuer M/s. Rajesh Shah Engineers & Consultants Pvt. Ltd. (‘registered valuer) who determined the fair market value of the said land at Rs.1,64,51.900/-.
ii) Accordingly, at the time of filing the return, the appellant, on the basis of the above valuation report, has adopted the actual sales consideration i.e. Rs.1,71,50,000/- for the purpose of computation of capital gains under the Act. The Assessing Officer in the Order passed u/s. 143(3) of the Act made an addition of Rs.8,21,26,000/- being the difference between stamp duty value and value adopted by the appellant by invoking the provisions of section 50C of Act and initiated penalty proceedings for furnishing of inaccurate particulars of income and concealment of income. The Assessing Officer also referred the valuation of the land in dispute to Department Valuation Officer as per provisions of section 50C of the Act who valued the property at Rs. 3,45,86,000/-.
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