Indian Kanoon - Search engine for Indian Law

11.We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld PCIT and other materials brought on record. The ld. Counsel for the assessee stated that assessee, along with other co-owners, had sold immovable property during the year under consideration and on verification of the information, it was noticed by the assessing officer that as per the sale deed, the sale consideration was shown at Rs.3,50,00,000/- and out of said sale consideration of Rs.3,50,00,000/-, assessee's share was worth Rs.17,50,000/- only,that is, at the rate of 5% of the total sale consideration ( 5% of Page | 6 128- ITA.356/RJT/2024 - A.Y. 2016-17 Shri Denish Khodidas Patel vs. PCIT Rs.3,50,00,000). However, as per the Jantri value of stamp duty valuation authority, the fair market value of the said property comes to Rs.3,92,06,122/- and the assessee's share comes to Rs.19,60,306/-, (that is, at the rate of 5% of Rs.3,92,06,122/-). The difference between the two values comes to Rs.2,10,306/- (Rs.19,60,306-Rs.17,50,000), which is a minor difference. The assessee has explained the reasons of such difference stating that ld PCIT did not go through the clause 11 of the sale deed where in it is stated that the seller had received consideration of Rs.3,50,00,000/- for 2451.11 sq. meter of land sold to the purchaser along with the common plot admeasuring 300.09 sq. meters for which no consideration is received by the seller, nor the purchaser has paid nor become payable. However, as per the provision of stamp duty regulations, stamp duty has been collected by the authority on this common plot also. Had the ld. PCIT gone through these facts and circumstances, then order passed by the assessing officer would be neither erroneous nor prejudicial to the interest of the revenue.

"3.0 Regarding the sale of immovable property with the other co-owners, it is to submit that I have jointly sold non-agricultural land having area of 2451.11 Sq. Mtr. At Rs. 3,50,00,000/- further my share in the property is 6% and not 5% as stated in the notice and received Rs. 21,00,000/- and not Rs. 19,60,306/- mentioned in the notice.

4.0 It appears from the notice that while analyzing the information and the documents i.e., sale deed, the sale consideration has been arithmetically calculated on the basis of stamp duty issued in the said document. In this case the purchaser has used stamp duty at Rs. 19,21,100/- and as such the value of property was worked out to Rs. 3,92,06,122/- (3,92,06,122*4.9%) as against the documentation value of Rs. 3,50,00,000/-. However, as per clause 11 of the said deed wherein it is stated that the seller had received consideration of Rs. 3.50 Cr. For 2451.11 sq. meters of land sold to the purchaser along with the common plot admeasuring 300.09 sq. meters for which no consideration is received by the seller nor the purchaser has paid nor it will be payable. However, as per the provisions of stamp duty regulations stamp duty has been collected by the authority on this common plot also. Accordingly, I have disclose STCG at Rs. 7,37,308/- in the return of income and paid due tax thereon which is verifiable form the records available. For your verification copy of sale deed and bank statement is attached as Annexure 2."