SYMBIOTIC INFOTECH PVT. LTD.,CHENNAI vs. DCIT, CORPORATE CIRCLE-6(2),, CHENNAI

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ITA 3226/CHNY/2024Status: DisposedITAT Chennai07 March 2025AY 2015-16Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI JAGADISH (Accountant Member)1 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 noted that the DVO's valuation report was eventually received and agreed with the assessee's request to direct the AO to re-compute the capital gain based on the stamp valuation authority's value as per Section 50C(3) of the Act.

What were the facts?

The assessee sold a property for Rs. 3,50,00,000/-, but the stamp valuation authority determined its value at Rs. 5,12,26,560/-. The Assessing Officer (AO) adopted the higher value for capital gains calculation. The assessee had objected, and the AO referred the case to the DVO, but the report was not received during the assessment.

What were the issues?

Whether the AO correctly adopted the stamp duty valuation as full consideration when a DVO report was pending, and whether the assessee is entitled to re-computation based on the subsequently received DVO report.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 50C,Section 50C(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI JAGADISH

Hearing: 05.03.2025Pronounced: 07.03.2025

आदेश / O R D E R

PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2015-16 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 02.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 29.12.2017.

2.

The effective ground of appeal in this appeal of assessee is against confirming the addition of the Long Term Capital Gain (LTCG) of Rs. 1,80,34,925/-. Assessee

1.

3. The assessee has sold a property at Ambattur Industrial Estate vide Document No.5485 of 2014 registered with SRO, Konnur for a consideration of Rs.3,50,00,000/-. The value of said property as per stamp valuation authority was Rs.5,12,26,560/-. The A.O therefore invoking the provisions of Section 50C of the Act considered the full value of consideration at Rs.5,12,26,560/- and made addition of long term capital gain of Rs.1,80,34,925/-. The assessee during assessment proceeding has challenged the valuation as per stamp valuation authority and the A.O has referred the valuation to the DVO.

1.

However, as the valuation report from DVO was not received, the A.O has adopted the value of property as per valuation of Rs. 5,12,26,560/.

4.

The Ld. Authorized Representative (A.R) of the assessee, at the outset, has stated that the valuation report has now been received vide F.No.DVO/MDS/CG(06)/2017-18-25/633 dated 19.12.2024. Therefore, the A.O may be directed to adopt the value as determined by the stamp valuation authority as per Section 50C(3) of the Act.

5.

The Ld. Departmental Representative did not controvert to the averments made by the assessee.

6.

We have heard the rival submissions, and perused the materials available on record. The A.O has taken the full value consideration on sale of property at Ambattur Industrial Estate at Rs. 5,12,26,560/- as against Rs.3,50,00,000/- shown by the assessee. The A.O by invoking the provisions of Section 50C of the Act, has adopted the value adopted by the stamp valuation authority as the full value of consideration. The assessee had objected to the valuation on the ground that the building was demolished before the transfer of land, and therefore, the A.O referred the case to DVO for valuation.

However, as the valuation report was not received at the time of passing the assessment order, the A.O adopted the value determined by the Stamp Valuation Authority, i.e., Rs. 5,12,26,560/-, as the full value of consideration. The valuation report was not received even by the time of passing the order by Ld. CIT(A). The valuation report has now been received on 19.12.2024, and the Ld. AR has requested to direct the A.O to re-compute capital gain by taking the value determined by the Stamp Valuation Authority as per Section 50C(3) of the Act. We agree with the submission of Ld. AR and we deem it fit to remit the matter back to the file of A.O to determine the LTCG in accordance with the provisions of Section 50C(3) of the Act. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on 07th March, 2025.

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