Where understatement of sale consideration by assessee in terms of section 50C was prima facie established, Assessing Officer was empowered to reopen assessment

IT : Where understatement of sale consideration by assessee in terms of section 50C was prima facie established, Assessing Officer was empowered to reopen assessment
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[2014] 51 taxmann.com 567 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
Rupakula Srinivas
v.
Income-tax, Ward-1 (1), Hyderabad*
B. RAMAKOTAIAH, ACCOUNTANT MEMBER
AND SAKTIJIT DEY, JUDICIAL MEMBER
IT APPEAL NO. 1859 (HYD.) OF 2012
[ASSESSMENT YEAR 2007-08]
AUGUST  13, 2014
I. Section 50C, read with section 147, of the Income-tax Act, 1961 - Capital gains - Special provision for computation of full value consideration (Reassessment) - Assessment year 2007-08 - Assessing Officer noticed that sale consideration as mentioned in sale deed submitted by assessee in earlier year was at lower side as compared to FMV adopted by SRO for stamp value purposes - Whether understatement in terms of section 50C being prima facie established, Assessing Officer was empowered to reopen assessment - Held, yes [Para 8] [In favour of revenue]
II. Section 50C of the Income-tax Act, 1961 - Capital gains - Special provision for computation of full value consideration (Valuation) - Assessment year 2007-08 - Assessing Officer noticed that sale consideration of a property in sale deed was at lower side as compared to FMV determined by DVO for stamp duty purposes - He adopted FMV determined by DVO, as deemed sale consideration and computed short-term capital gain and made addition - It was found that DVO had considered comparable sale instances of subsequent period and though he accepted specific issues raised by assessee, namely, non-utilization of part of land, vaastu defects etc., but he had not properly given discount towards same - Whether, therefore, matter was to be remitted for reconsideration - Held, yes [Para 17] [In favour of assessee/Matter remanded]