BISHNU KUMAR KHEMKA,KOLKATA vs. ITO, WARD-28(4), KOLKATA., KOLKATA

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ITA 640/KOL/2023Status: DisposedITAT Kolkata25 August 2023AY 2012-134 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the difference between the stamp duty value and the consideration received was less than 10%, which is within the permissible limit under the third proviso to Section 50C of the Act. Therefore, the addition made by the AO was deleted.

What were the facts?

The assessee sold a property and the Assessing Officer (AO) made an addition of Rs. 5,52,757/- on account of the difference between the value determined by the Stamp Valuation Authority and the value determined by a government-approved valuer. The CIT(A) upheld the AO's order.

What were the issues?

Whether the addition made under Section 50C based on the difference between stamp duty value and consideration received is valid when the difference is within 10%.

Which sections of the Income-tax Act were involved?

Section 50C,Section 48

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: SRI RAJESH KUMAR & SONJOY SARMA

order

: August 25th, 2023 ORDER

Per Rajesh Kumar, Accountant Member:

1.

This is an appeal preferred by the assessee against the order of Learned Commissioner of Income-tax (Appeals)- NFAC, Delhi [hereinafter referred to Ld. ‘CIT(A)’] dated 02.05.2023 for the Assessment Year (in short ‘AY’) 2012-13.

2.

The only issue raised by the assessee in the grounds of appeal

is against the ex-parte order passed by Ld. CIT(A) wherein Ld. I.T.A. No.: 640/KOL/2023 Assessment Year: 2012-13 Bishnu Kumar Khemka. CIT(A) affirmed the order of the Assessing Officer (in short ld. 'AO') confirming the addition of Rs. 5,52,757/- made by Ld. AO on account of difference between the value of property as per Stamp Valuation Authority and as per Government approved valuer.

3. The facts in brief are that the assessee filed the return of income on 30.08.2012 declaring the total income at Rs. 4,08,877/- . The case of the assessee was selected for scrutiny through reopening of the assessment by issuing notice u/s 148 of the Income Tax Act, 1961 (in short the 'Act') dated 03.03.2016. After recording the reasons to believe u/s 148(2) of the Act wherein it has been noted that the assessee has sold property in which he had 1/6th ownership during the year and the sale consideration is less than the fair market value and accordingly, the income has escaped assessment. Ld. AO during the course of assessment proceedings noted that the market value of the said property has been assessed at Rs. 5,89,97,915/- by the office of A.R.A-II, Kolkata. However, the amount of consideration received by the assessee was only Rs. 50 lakh out of the sale consideration vide sale deed dated 19.12.2011. The assessee has furnished valuation report of the property valuing the property at Rs. 70.93 lakh as on 01.04.1981 and the indexed value of the property was worked out at Rs. 5,56,80,050/-. Ld. AO accordingly computed the share of the assessee in the property at Rs. 98,29,053/- as per the Stamp Value Authority and after reducing the value as per the Government approved valuer at Rs. 92,76,296/- added a sum of Rs. 5,52,757/- as difference between the market value as per Government approved valuer and Value as per stamp authority u/s

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