INCOME TAX ACT, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - Non-invocation of section 50C though stamp duty value of property sold exceeding the declared sale consideration - Assessee took plea of sale consideration being higher than value of property as per ready reckoner rate

Pr. CIT held assessment order as erroneous insofar it was prejudicial to the interest of revenue on the ground that AO failed to appreciate that as assessee had sold property for a sale consdieration of Rs. 4 crores which was less than the value assessed by stamp valuation authority at Rs. 5 crores, therefore, section 50C was applicable but AO adopted sale consieration at Rs. 4,55,00,000 for the purpose of computation of capital gain without applying section 50C. Assessee pleaded that value of the property as per ready reckoner rate was below Rs. 4 crores. Held: There was no material available on record from where it could be gathered that valuation adopted by stamp valuation authority at Rs. 5 crores had been substituted by the ready reckoner rate. Accordingly, AO was directed to verify as to whether or not valuation adopted by stamp valuation authority had been revised reckoner rated. In case, valuation adopted by stamp valuation authority had not been revised, then for working valuation of property AO would refer the matter to DVO, as per section 50C(2). Accordingly, Pr. CIT had rightly invoked jurisdiction under section 263.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2014-15

INCOME TAX ACT, 1961

Section 263

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