The Tax Publishers2022 TaxPub(DT) 5601 (Del-Trib)

IN THE ITAT, DELHI BENCH

N.K. BILLAIYA, A.M. & ANUBHAV SHARMA, J.M.

Avdhesh Kumar v. Pr. CIT

ITA No. 3416/DEL/2018

17 August, 2022

Assessee by: Anoop Sharma, Advocate

Revenue by: Ishtiyaque Ahmed, Commissioner Departmental Representative

ORDER

Anubhav Sharma, J.M.

1. This appeal has been preferred by the assessee against the order under section 263 of the Income Tax Act, 1961 (here in after referred as the Act‟) dated 26-3-2018 of learned Principal Commissioner, Ghaziabad (here in after referred as learned Revisional Authority) in regard to an assessment Order dated 19-8-2015 passed under section 143(3) of the act passed by the learned assessing officer, Deputy Commissioner, Circle-1, Ghaziabad (here in after referred as the Ld. AO).

2. Facts in brief are that assessee filed its return of income on 30-11-2013 declaring income of Rs. 21,93,310. The case was selected for scrutiny through CASS. Accordingly, notice under section 143(2) dated 9-9-2014 was issued. The assessee is an individual and retired from Indian Army in 1996. During the year under consideration, assessee has started a business of distributorship of Vestige Marketing Private Limited and farming on his paternal land. The assessee had also derived pension from Indian Army. During the course of assessment proceedings, it was found that assessee had sold an agricultural land at an amount of Rs. 96,30,000 to M/s. Omkar Nest Private Limited. The learned assessing officer Vide Letter dated 25-5-2015, directed assessee to furnish the details of property sold along with date of acquisition of the property and date of sale of property. The assessee filed reply on 8-6-2015 stating that assessee purchased an agriculture land for Rs. 20,43,000 (with Stamp and Receipt value) on 20-5-2012. Due to some reasons this land was Sold within two months to M/s. Omkar Nest Private Limited as Agriculture Land of Rs. 96,30,000. After this, he made an investment in another Agriculture Land of Rs. 55,36,078 (with Stamp and Receipt). On above transaction, he was paid Capital Gain according to Income Tax Act, 1961. The learned assessing officer found that the property was sold at Rs. 96,30,000 whereas the value of this property according to Circle rate, is at Rs. 1,16,13,000. Therefore, vide Order Sheet Entry dated 20-7-2015, assessee was required to explain the reason why the computation be not taken at Rs. 1,16,13,000 as cost of consideration which is Circle rate also as per deed?. The assessee vide Reply dated 31-7-2015, stated that he has sold an agriculture land area 0.7590 Hectare of Rs. 96,30,000 on 20-7-2012 situated at Makarmatpur Sikheda, Tehsil Modinagar Distt. Ghaziabad. Circle rate of this area, according to Circle Rate List (issue by Office from Sub registrar Modinagar) effective from 14-7-2012 is Rs. 35,00,000 per Hectare. According to this list, value of this land is Rs. 26,56,500. But assessee sold this land of Rs. 96,30,000 to M/s. Omkar Nest Private Limited. This value is higher than Circle rate. Assessee has paid Capital Gain on this sale consideration. The assessing officer observed that according to sale deed, value of this land at Rs. 1,16,13,000 was fictitious circle rate. This circle rate is not mentioned anywhere in the circle rate list issued by office from sub registrar Modinagar. Accordingly assessing officer held that the assessee had paid stamp duty at the value of Rs. 1,16,13,000 not at Rs. 96,30,000, and hence the case falls within the purview of section 50C of the Income Tax Act, 1961.

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