The Tax Publishers2020 TaxPub(DT) 3721 (Jp-Trib)

INCOME TAX ACT, 1961

Section 263

Though stamp duty authority levied stamp duty by assessing the value @ 150% of sale value declared in sale deed, however, assessee having declared sale consideration more than DLC, there was no justification for invoking section 50C and, therefore, assessment order could not be held as erroneous and prejudicial.

Revision under section 263 - Erroneous and prejudicial order - Non-invocation of section 50C by AO - Assessee having declared sale consideration more than DLC

Assessee sold agricultural land of which DLC rate was Rs. 3,66,36,487. The sale value declared by assessee was Rs. 4,92,00,000. Stamp Duty Authority levied stamp duty by assessing the value @ 150% of sale value declared in sale deed. The land was valued by stamp duty authority at Rs. 7,38,00,000. Pr. CIT held Order passed by AO as erroneous and prejudicial to the interests of revenue on the ground that AO was required to invoke section 50C as land was sold for Rs. 4,92,00,000 whereas DLC rate was Rs. 7,38,00,000. Held: It was undisputed fact that assessee had declared sale consideration more than DLC rate. Accordingly there was no justification for invoking section 50C and, therefore, assessment order could not be held as erroneous and prejudicial.

Relied:Om Prakash Agarwal in ITA No. 1393/JP/2019 Order, dated 3-8-2020 : 2020 TaxPub(DT) 3154 (Jp-Trib)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

IN THE ITAT, JAIPUR BENCH

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