Can the valuation done by
any authority of the State Government for the purpose of payment of stamp duty
in respect of land or building be taken as actual sale consideration received
by the purchaser?
Case Law : CIT v. Chandni Buchar
(2010) 323 ITR 0510 (Pun.& Har.)
Section : 50C of Income-Tax Act 1961
The Assessing
Officer added the difference between purchase price disclosed in the sale deed
and purchase price of the property adopted for the purpose of paying the stamp
duty to the total income of the assessee as income from unexplained sources.
The Commissioner of Income-tax (Appeals) deleted this addition by holding that
section 50C is a deeming provision for the purpose of bringing to tax the
difference as capital gain. Further, he also held that in the absence of any
legally acceptable evidence, valuation done for the purpose of section 50C
would not represent actual consideration passed on to the seller. The Tribunal also held that
valuation done by any State agency for the purpose of stamp duty would not ipso
facto substitute the actual sale consideration as being passed on to the
seller by the purchaser in the absence of any admissible evidence. The
Assessing Officer is obliged to bring on record positive evidence indicating the fact that the
assessee has paid anything more than the sum disclosed in the purchase
deed. In this case, the assessee has discharged the burden of proving the sale
consideration as projected in the sale deed by producing the original bank
statement.
The
High Court, therefore, held that the view taken by the Tribunal while accepting
the order of the Commissioner of Income-tax (Appeals) does not suffer from any
legal infirmity.
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