September 2023
Third proviso to section 50C being a beneficial provision, the benefit extended by third proviso to section 50C should be extended to a case where value determined by stamp valuation authority has been substituted by the value determined by DVO.
25. Smt. Krishna Yadav vs. ITO
ITA No. 2496/Del/2017 (Delhi)
A.Y.: 2005–06
Date of Order: 22nd February, 2022
Section: 50C Third proviso to section 50C being a beneficial provision, the benefit extended by third proviso to section 50C should be extended to a case where value determined by stamp valuation authority has been substituted by the value determined by DVO.FACTSThe assessee, an individual, filed return of income, for assessment year 2005–06, declaring total income of Rs. 46,18,500. In the course of assessment proceedings, the Assessing Officer (AO) noticed that during the year under consideration, the assessee has sold immovable property consisting of land and constructed portion for a sale consideration of Rs. 90 Lakh. The Stamp Valuation Authority has determined the value of the property at Rs. 1,02,36,200.
The AO issued a show cause-notice to the assessee to explain, why the value determined by the Stamp Valuation Authority should not be considered as deemed sale consideration. Though, the assessee objected to the proposed action of the AO, rejecting assessee’s submission, the AO proceeded to substitute the declared sale consideration with the value determined by the Stamp Valuation Authority in terms of section 50C of the Act. Hence, the AO proceeded to compute short term capital gain by maki
