CLR Editorial Notes: The assessee in question, had sold a property for a consideration of Rs. 2.50 crore. However, for the purpose of applicable stamp duty, the property was valued at Rs. 5.19 crore and the stamp duty was paid on that value. The assessee then offered capital gains on the basis that the sale consideration was Rs. 2.50 crore. The Assessing Officer however, invoked Section 50C and held that the sale consideration had to be taken at Rs. 5.19 crore and capital gains computed on that basis. The Assessing Officer imposed a penalty under Section 271(1)(c) which was deleted by the CIT(A) and the Tribunal after relying on another case of Renu Hingorani. The department appealed to the High Court, which dismissed the appeal and held:
“Though the assessee could have disputed the valuation on the basis of the deemed value and chose not to do so, 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 section 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. As such, there is no scope to admit the appeal”
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Case Files Available for download
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Main Case File: CIT vs. Madan Theatres (Calcutta High Court)
Reference Case File: Renu Hingorani vs. ACIT (ITAT Mumbai)
