KOLKATA RESERVE BANK EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD.,KOLKATA vs. I.T.O., WARD - 36(1), KOLKATA, KOLKATA

Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 7th June, 2024 passed for Assessment Year 2018-19.

3. With the assistance of ld. Representatives, we have gone through the record carefully. It emerges out from the record that the assessee has purchased a property, whose value in the sale deed has been determined at Rs.1,20,00,000/-. However, for the purpose of charging the stamp duty, stamp duty valuation authority has determined the value at Rs.1,37,97,563/-. The ld. Assessing Officer has confronted the assessee as to why the difference of Rs.17,97,563/- be not added in the hands of assessee as deemed gift under section 56(2)(x) of the Income Tax Act. The ld. Counsel for the assessee has pointed out that the assessee has made a prayer that valuation of the property be determined on its fair market value as per clause (2) of section 50C, which was provided in the 2nd proviso under section 56(2)(x). This procedure has not been followed by the ld. Assessing Officer. Therefore, we deem it appropriate to set aside both the orders and direct the ld. Assessing Officer to get the property valued by the DVO and determine the fair market value. If the difference between the sale consideration disclosed (A.Y. 2018-2019) Kolkata Reserve Bank Employees Cooperative Credit Society Limited Assessment Year: 2018-2019 by the assessee, vis-à-vis determined by the DVO, is to be worked out. The ld. Assessing Officer thereafter decide the issue in accordance with law.