SH. SHIROM LAMBA,CHANDIGARH vs. ITO, WARD- 2(3), CHANDIGARH
Income Tax Appellate Tribunal, CHANDIGARH BENCH: ‘B’: CHANDIGARH
Before: SHRI MAHAVIR SINGH
PER MAHAVIR SINGH, VP:
This appeal by assessee is arising out of order of Commissioner of Income Tax, NFAC, Delhi, in appeal no. CIT(A),
Chandigarh-1/10427/2016-17. Assessment was framed by ITO,
Ward 2(3), Chandigarh for the Assessment Year 2014-15, under ITA No.- 702/Chandi/2022
Shirom Lamba
Page 2 of 11
Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) vide order dated 08.07.2016. 2. The only issue in this appeal of the assessee is as regards to the order of CIT(A) sustaining the addition of long-term capital gain by computing U/s 50C of the Act. For this, the assessee has raised the relevant ground no. 3, which is as under:
“3. That in the facts and circumstances of the case, the Ld.
Commissioner of Income Tax (Appeals) gravelly erred in sustaining the addition of Rs. 27,89,033/- out of the total addition of Rs. 83,96,328/- made by the ld. Assessing Officer by resorting to the provisions of Section 50C of the Income Tax Act,
1961.”
Brief facts are that, the assessee, Sh. Shirom Lamba, is a co- owner of the property in SCF 10, Sector 22D, Chandigarh to the extent of 8.33% shares. He sold his 8.33% shares by entering into an agreement to sale with the purchasers, namely Smt. Tirlochankaur, Gurpreet Singh and Shri. Kuldeep Singh, vide an agreement dated 31.08.2012, which was subsequently signed again with the same purchaser in 2013 due to death of one of the purchaser, Shri. Iqbal Singh. The total consideration of 25% shares being co-owners namely, Shirom Lamba, Sh. Sameer Lamba
ITA No.- 702/Chandi/2022
Shirom Lamba
Page 3 of 11
and Sh. Anil Kumar Lamba, to the extent of 8.33% each is Rs 1.40
crores. Thereby, all three co-owners of 25% shares in SCF No. 10,
Sector-22D, Chandigarh, sold this property for a total consideration of Rs. 1.40 crores. The AO during the course of assessment proceedings noted that as per return filed by assessee, has shown sale consideration at Rs. 46, 66,667/- to the extent of his shares of 8.33%. The AO noted that the fair market value, in term of provision of section 50C of the Act is to be taken as per Circle Rate fixed by Sub-