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| The Tax Publishers2019 TaxPub(DT) 2470 (Mum-Trib) : (2019) 199 TTJ 0902 INCOME TAX ACT, 1961
Section 50C
Despite the fact that assessee throughout the proceedings contended that he was neither having possession of subject property nor having marketable title and same was offered on the basis 'as is where is', AO treated stamp valuation rate as full value of consideration which was not justified, in the absence of any evidence suggesting that sale consideration was more than the value shown in concerned memorandum of intent duly approved by High Court.
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Capital gains - Applicability of section 50C - Transfer of encumbered property -
Property held by assessee was encumbered and assessee was not absolute owner thereof. AO while computing capital gain arising on transfer of such a property treated stamp valuation rate as full value of consideration by applying section 50C. Held: Despite the fact that assessee throughout the possession contended that he was neither having possessing of subject property nor having marketable title and same was offered on the basis 'as is where is', AO treated stamp valuation rate as full value of consideration which was not justified, in the absence of any evidence suggesting that sale consideration was more than the value shown in concerned memorandum of intent duly approved by High Court.
Relied on:K.P. Varghese v. ITO, Ernakulam, & Anr. 1981 TaxPub(DT) 972 (SC): (1981) 131 ITR 597 (SC), The CIT Delhi-II v. Khoobsurat Resorts (P) Ltd. 2013 TaxPub(DT) 236 (Del-HC) and Smt. D. Anitha v. ITO Ward 10(2), Hyderabad 2015 TaxPub(DT) 1935 (Hyd-Trib)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
IN THE ITAT, MUMBAI BENCH
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