w w w . L a w y e r S e r v i c e s . i n



M/s. Kar Agro Products LLP v/s The Income Tax Officer


Company & Directors' Information:- K. N. C. AGRO LIMITED [Active] CIN = U01500WB2005PLC102657

Company & Directors' Information:- F AND K AGRO PRIVATE LIMITED [Active] CIN = U01111PN1980PTC014563

Company & Directors' Information:- R T AGRO PRIVATE LIMITED [Active] CIN = U15400MH1988PTC122934

Company & Directors' Information:- G H AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15143PB1996PTC018159

Company & Directors' Information:- N M AGRO PRIVATE LIMITED [Active] CIN = U15209DL2000PTC103461

Company & Directors' Information:- K F AGRO PRIVATE LIMITED [Active] CIN = U01132PB1998PTC021937

Company & Directors' Information:- T K M AGRO LIMITED [Active] CIN = U01119TZ2000PLC009159

Company & Directors' Information:- S A AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01403WB2013PTC195653

Company & Directors' Information:- B. D. AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01400WB2009PTC136319

Company & Directors' Information:- D A P AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01403WB2011PTC157956

Company & Directors' Information:- B. K. AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U70101WB1990PTC049682

Company & Directors' Information:- S V M A AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15142TZ2003PTC010834

Company & Directors' Information:- M S AGRO PRIVATE LIMITED [Active] CIN = U01403WB2011PTC163653

Company & Directors' Information:- S K K AGRO PRIVATE LIMITED [Active] CIN = U01110DL2007PTC163157

Company & Directors' Information:- P N AGRO PVT LTD [Active] CIN = U01401WB1992PTC056261

Company & Directors' Information:- K E AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15314KL2002PTC015782

Company & Directors' Information:- B R V AGRO PRIVATE LIMITED [Strike Off] CIN = U15139UP2007PTC034299

Company & Directors' Information:- A P T AND CO LLP [] CIN = AAL-8025

Company & Directors' Information:- R D N A AND CO LLP [Active] CIN = AAM-4183

Company & Directors' Information:- A A AND A AGRO LIMITED [Converted to LLP] CIN = U01111DL1986PLC025101

Company & Directors' Information:- B. P AGRO INDIA PRIVATE LIMITED [Active] CIN = U15132DL2019PTC357421

Company & Directors' Information:- AGRO (INDIA) PRODUCTS PRIVATE LIMITED [Active] CIN = U01500DL2013PTC250521

Company & Directors' Information:- W B AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15400KA2014PTC073123

Company & Directors' Information:- M Y AGRO PRIVATE LIMITED [Active] CIN = U51221DL2011PTC215043

Company & Directors' Information:- H R D AGRO PRIVATE LIMITED [Active] CIN = U15490PB2006PTC030412

Company & Directors' Information:- C F L AGRO PRIVATE LIMITED [Strike Off] CIN = U01409KA2001PTC028797

Company & Directors' Information:- D M AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1995PTC066893

Company & Directors' Information:- C A P A (INDIA) LLP [] CIN = AAF-9325

Company & Directors' Information:- D N AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15314UR2005PTC032824

Company & Directors' Information:- L K AGRO PRIVATE LIMITED [Active] CIN = U15140MH1998PTC115185

Company & Directors' Information:- N K AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15490PB2010PTC034534

Company & Directors' Information:- H D AGRO PRIVATE LIMITED [Strike Off] CIN = U01111MH1996PTC097451

Company & Directors' Information:- P C L AGRO PRIVATE LIMITED [Active] CIN = U74899DL1992PTC049537

Company & Directors' Information:- A S AGRO PRIVATE LIMITED [Active] CIN = U74899DL1989PTC040467

Company & Directors' Information:- S N N AGRO PRIVATE LIMITED [Active] CIN = U01114JH2016PTC008919

Company & Directors' Information:- R R S AGRO PRIVATE LIMITED [Strike Off] CIN = U15139DL2010PTC209756

Company & Directors' Information:- INDIA AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01300TZ1991PTC003161

Company & Directors' Information:- AGRO PRIVATE LIMITED [Strike Off] CIN = U51101KA1962PTC001475

Company & Directors' Information:- D. J. AGRO PRIVATE LIMITED [Strike Off] CIN = U01112DL1994PTC057414

Company & Directors' Information:- S B R AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01120TN2008PTC070170

Company & Directors' Information:- G A AGRO PRIVATE LIMITED [Active] CIN = U01229KL2002PTC015736

Company & Directors' Information:- M K B AGRO PRIVATE LIMITED [Active] CIN = U01100MH1996PTC101802

Company & Directors' Information:- T D K AGRO PRIVATE LIMITED [Active] CIN = U29190BR1991PTC004486

Company & Directors' Information:- S G AGRO PRIVATE LIMITED [Active] CIN = U01122KA1995PTC017091

Company & Directors' Information:- N K K AGRO LLP [] CIN = AAF-9091

Company & Directors' Information:- AGRO INDIA PRIVATE LIMITED [Active] CIN = U01407AR2013PTC008381

Company & Directors' Information:- U & V AGRO PRIVATE LIMITED [Active] CIN = U01403TZ2015PTC021823

Company & Directors' Information:- B A B AGRO LTD [Strike Off] CIN = U24231MH1993PLC073114

Company & Directors' Information:- B S AGRO PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U29246WB1995PTC073119

Company & Directors' Information:- B A B AGRO LTD [Active] CIN = U24233WB1987PLC043179

Company & Directors' Information:- M D S & CO LLP [] CIN = AAF-2760

Company & Directors' Information:- K D AGRO LLP [Under Process Of Strike Off] CIN = AAF-7815

Company & Directors' Information:- A A A M & CO LLP [Active] CIN = AAT-1669

Company & Directors' Information:- B C M AGRO PRIVATE LIMITED [Active] CIN = U01119WB1999PTC090308

Company & Directors' Information:- K. K. AGRO PVT. LTD. [Strike Off] CIN = U51420WB1987PTC042090

Company & Directors' Information:- H & W AGRO PRIVATE LIMITED [Strike Off] CIN = U01400MH2012PTC238144

Company & Directors' Information:- K D AGRO PRIVATE LIMITED [Converted to LLP] CIN = U15312DL2005PTC131996

Company & Directors' Information:- S C P AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15400WB2010PTC154344

Company & Directors' Information:- B B AGRO PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U01111WB1999PTC089962

Company & Directors' Information:- R C A AND CO LLP [Active] CIN = AAU-3441

Company & Directors' Information:- D B Y & CO LLP [] CIN = AAF-3364

Company & Directors' Information:- H R AGRO PRIVATE LIMITED [Active] CIN = U01119PB1995PTC016403

Company & Directors' Information:- B. R. AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U74999MP2020PTC052151

Company & Directors' Information:- C K N AGRO PRIVATE LIMITED [Active] CIN = U01300KL2020PTC064742

Company & Directors' Information:- C A N V A S & CO LLP [] CIN = AAG-1661

Company & Directors' Information:- E I U INDIA LLP [] CIN = AAG-0189

Company & Directors' Information:- S S S R & COMPANY LLP [Active] CIN = AAS-6238

Company & Directors' Information:- A Q AGRO PVT LTD [Under Process of Striking Off] CIN = U51209WB2006PTC109930

Company & Directors' Information:- S E AGRO PRIVATE LIMITED [Active] CIN = U52500AP2016PTC103446

Company & Directors' Information:- S U B AGRO PRIVATE LIMITED [Active] CIN = U24129PN2000PTC015404

Company & Directors' Information:- J. M AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01122UP2007PTC032828

Company & Directors' Information:- A S G AGRO LIMITED [Strike Off] CIN = U01119HR2004PLC035459

Company & Directors' Information:- P M AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01100MP2010PTC023037

Company & Directors' Information:- T & T AGRO PRIVATE LIMITED [Active] CIN = U01132WB1999PTC090368

Company & Directors' Information:- M. C. AGRO PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74990WB2009PTC135219

Company & Directors' Information:- C L AGRO PRIVATE LIMITED [Strike Off] CIN = U74120UP2012PTC051898

Company & Directors' Information:- P M S AGRO PVT LTD [Strike Off] CIN = U29211PB1994PTC014448

Company & Directors' Information:- P G AGRO PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U01403WB2009PTC139377

Company & Directors' Information:- L. M. AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U15139DL2010PTC207504

Company & Directors' Information:- C K AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01403AP2016PTC098332

Company & Directors' Information:- R J AGRO PRODUCTS INDIA PRIVATE LIMITED [Strike Off] CIN = U15311KA2005PTC036080

Company & Directors' Information:- B R K AGRO PRIVATE LTD [Strike Off] CIN = U29211PB1994PTC014302

Company & Directors' Information:- R E I AGRO LTD. [Active] CIN = U01111WB1994PLC065082

Company & Directors' Information:- M B S P & CO LLP [] CIN = AAI-4025

Company & Directors' Information:- Y N G AND CO LLP [] CIN = AAJ-6096

Company & Directors' Information:- V S K A & COMPANY LLP [Active] CIN = AAU-5542

Company & Directors' Information:- H N C P & CO LLP [Active] CIN = AAT-5981

Company & Directors' Information:- P & S AGRO INDIA LIMITED [Strike Off] CIN = U01403MH2011PLC214782

Company & Directors' Information:- D N D AGRO (INDIA) LIMITED [Active] CIN = U01403PN2011PLC139235

Company & Directors' Information:- L C A AGRO PRIVATE LIMITED [Strike Off] CIN = U01112UP2005PTC029657

Company & Directors' Information:- V M G AGRO INDIA LIMITED [Active] CIN = U01100MP2011PLC026434

Company & Directors' Information:- G D AGRO PRIVATE LIMITED [Strike Off] CIN = U24122UP1993PTC015164

Company & Directors' Information:- P B AGRO PRIVATE LIMITED [Amalgamated] CIN = U26960MH1990PTC057137

Company & Directors' Information:- AGRO PRODUCTS PVT LTD [Strike Off] CIN = U01131OR1983PTC001188

Company & Directors' Information:- R A P AGRO INDIA PVT LTD [Strike Off] CIN = U14200WB2006PTC107514

Company & Directors' Information:- R L R AGRO PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U01403TG2012PTC082514

Company & Directors' Information:- G T AGRO INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC142577

Company & Directors' Information:- F AND K AGRO PVT LTD [Strike Off] CIN = U29248PN1980PTC022759

Company & Directors' Information:- E M AGRO (INDIA) PRIVATE LIMITED [Strike Off] CIN = U02001UP1997PTC022261

Company & Directors' Information:- J S AGRO PRIVATE LIMITED [Strike Off] CIN = U01300PB1993PTC013943

Company & Directors' Information:- A N AGRO PRIVATE LIMITED [Strike Off] CIN = U01119DL1996PTC081855

Company & Directors' Information:- V R L AGRO PRIVATE LIMITED [Strike Off] CIN = U85110KA1999PTC024717

Company & Directors' Information:- R S A C & CO LLP [Active] CIN = AAX-1702

Company & Directors' Information:- A B D AND CO LLP [] CIN = AAG-4228

Company & Directors' Information:- R H D B & CO LLP [] CIN = AAF-9564

Company & Directors' Information:- N J S R & CO LLP [Active] CIN = AAS-6904

Company & Directors' Information:- R P V AGRO PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U01300TZ1997PTC008071

Company & Directors' Information:- M S T S AND CO LLP [] CIN = AAJ-9789

Company & Directors' Information:- A G N & CO LLP [Active] CIN = AAT-3343

Company & Directors' Information:- A H S G & CO LLP [Active] CIN = AAU-8429

Company & Directors' Information:- J K J S & CO. LLP [] CIN = AAI-5880

Company & Directors' Information:- P. S. R. AGRO PRIVATE LIMITED [Active] CIN = U24248UP1974PTC004017

Company & Directors' Information:- A-KAR LLP [] CIN = AAG-6195

Company & Directors' Information:- O N AGRO PRIVATE LIMITED [Active] CIN = U74899DL1988PTC031986

Company & Directors' Information:- A V S AGRO-PRODUCTS COMPANY LIMITED [Dissolved] CIN = U74899DL1995PLC070790

Company & Directors' Information:- A B A M & CO. LLP [] CIN = AAF-2113

Company & Directors' Information:- M N S H & CO LLP [] CIN = AAG-4390

Company & Directors' Information:- T & R INDIA LLP [] CIN = AAH-4079

Company & Directors' Information:- S G S R & CO LLP [] CIN = AAH-3391

Company & Directors' Information:- D M M & COMPANY LLP [] CIN = AAJ-7431

Company & Directors' Information:- K L S AND CO LLP [] CIN = AAJ-7210

Company & Directors' Information:- A Y K J & CO LLP [Active] CIN = AAS-7373

Company & Directors' Information:- K N A AND CO LLP [Active] CIN = AAU-0083

Company & Directors' Information:- H S K & CO LLP [Active] CIN = AAT-9072

Company & Directors' Information:- S D U AND CO LLP [Active] CIN = AAM-9609

Company & Directors' Information:- M R AGRO PRODUCTS PRIVATE LIMITED [Active] CIN = U01400MH2012PTC226708

Company & Directors' Information:- K R S AGRO PRIVATE LIMITED [Strike Off] CIN = U01400PN2011PTC141711

Company & Directors' Information:- J K AGRO PRIVATE LIMITED [Strike Off] CIN = U74900PY2011PTC002548

Company & Directors' Information:- W B S AGRO PRIVATE LIMITED [Active] CIN = U01122PB2003PTC025879

Company & Directors' Information:- G T M AGRO PRIVATE LIMITED [Strike Off] CIN = U01100MH2005PTC150816

Company & Directors' Information:- Y K AGRO PRIVATE LIMITED [Converted to LLP and Dissolved] CIN = U74999DL2013PTC250398

Company & Directors' Information:- N P M AGRO PRIVATE LIMITED [Strike Off] CIN = U15494DL2011PTC214942

Company & Directors' Information:- B L B AGRO PRIVATE LIMITED [Strike Off] CIN = U51200DL2012PTC244511

Company & Directors' Information:- D A AGRO PRIVATE LIMITED [Active] CIN = U74900DL2015PTC288168

Company & Directors' Information:- D. B. AGRO PRIVATE LIMITED [Active] CIN = U01100MP2010PTC025035

Company & Directors' Information:- B. U. AGRO-PRODUCTS PRIVATE LIMITED [Active] CIN = U01100GJ2018PTC101009

Company & Directors' Information:- A P A R & CO LLP [Active] CIN = AAS-8336

Company & Directors' Information:- A A M K & CO LLP [Active] CIN = AAT-0385

Company & Directors' Information:- V U D & CO LLP [Active] CIN = AAT-1391

Company & Directors' Information:- Y K AGRO LLP [] CIN = AAD-7727

Company & Directors' Information:- I B PRODUCTS LLP [] CIN = AAG-2209

Company & Directors' Information:- M B D & CO LLP [] CIN = AAG-6725

Company & Directors' Information:- S R J N & CO LLP [] CIN = AAH-0969

Company & Directors' Information:- A T M S & CO LLP [] CIN = AAH-2210

Company & Directors' Information:- J J J AND COMPANY LLP [] CIN = AAH-6513

Company & Directors' Information:- B G K & CO LLP [] CIN = AAI-2849

Company & Directors' Information:- M N K D & CO LLP [] CIN = AAI-9526

Company & Directors' Information:- D S R V AND CO LLP [] CIN = AAJ-5358

Company & Directors' Information:- K D M AND CO LLP [] CIN = AAJ-9144

Company & Directors' Information:- S P K G & CO LLP [] CIN = AAK-1705

Company & Directors' Information:- V D S R & CO LLP [] CIN = AAK-2237

Company & Directors' Information:- M A S P N & CO LLP [] CIN = AAK-4575

Company & Directors' Information:- N P K & COMPANY LLP [] CIN = AAL-7453

Company & Directors' Information:- J B S K & CO LLP [Active] CIN = AAN-2033

Company & Directors' Information:- P R P A & COMPANY LLP [Active] CIN = AAT-7868

Company & Directors' Information:- S M B C & COMPANY LLP [Active] CIN = AAU-0557

Company & Directors' Information:- L M R K & CO LLP [Active] CIN = AAV-4030

Company & Directors' Information:- D A M & CO LLP [Active] CIN = AAW-8134

Company & Directors' Information:- N A D & CO LLP [Active] CIN = AAW-9504

Company & Directors' Information:- A B R & CO LLP [Active] CIN = AAX-0331

Company & Directors' Information:- J K J & CO LLP [] CIN = AAE-5439

Company & Directors' Information:- S G C O & CO LLP [] CIN = AAI-0379

Company & Directors' Information:- G P S & CO LLP [] CIN = AAI-0872

Company & Directors' Information:- K K A B & CO LLP [] CIN = AAJ-3296

Company & Directors' Information:- C S D AND CO LLP [] CIN = AAJ-4629

Company & Directors' Information:- M P G V & CO LLP [] CIN = AAJ-5351

Company & Directors' Information:- A T S G & CO LLP [] CIN = AAK-3751

Company & Directors' Information:- G G S H & CO. LLP [] CIN = AAL-8083

Company & Directors' Information:- J N S V & CO LLP [Active] CIN = AAM-6900

Company & Directors' Information:- S H A & CO LLP [Active] CIN = AAO-4028

Company & Directors' Information:- A A S S & COMPANY LLP [Active] CIN = AAT-4426

Company & Directors' Information:- T & K AGRO PRODUCTS LLP [Active] CIN = AAU-0747

Company & Directors' Information:- A I AGRO PRODUCTS LLP [] CIN = AAF-9177

Company & Directors' Information:- S K B & COMPANY LLP [Active] CIN = AAT-5051

Company & Directors' Information:- G A S A & CO LLP [Active] CIN = AAU-4365

Company & Directors' Information:- S P A S AND CO LLP [Active] CIN = AAS-9005

Company & Directors' Information:- S K R AND COMPANY LLP [Active] CIN = AAB-9330

Company & Directors' Information:- C S AND CO LLP [] CIN = AAL-5204

Company & Directors' Information:- M M G S AND CO LLP [Active] CIN = AAW-8857

Company & Directors' Information:- A J M S & CO LLP [Active] CIN = AAS-6794

Company & Directors' Information:- S B S S & CO LLP [] CIN = AAG-2178

Company & Directors' Information:- P Y S & CO LLP [] CIN = AAG-9715

Company & Directors' Information:- A R N P AND CO LLP [Active] CIN = AAS-7063

Company & Directors' Information:- N M G K & COMPANY LLP [Active] CIN = AAU-2181

Company & Directors' Information:- S H A P AND COMPANY LLP [Active] CIN = AAU-5309

Company & Directors' Information:- B K Y & CO LLP [Active] CIN = AAU-7172

Company & Directors' Information:- S R B A & CO LLP [] CIN = AAF-9001

Company & Directors' Information:- A C C A & CO LLP [] CIN = AAF-2112

Company & Directors' Information:- K A M AND CO LLP [Active] CIN = AAU-7380

Company & Directors' Information:- S C M K & CO LLP [Active] CIN = AAT-2422

    ITA No. 3316/Ahd of 2016

    Decided On, 05 October 2018

    At, Income Tax Appellate Tribunal Ahmedabad

    By, THE HONOURABLE MR. RAJPAL YADAV
    By, JUDICIAL MEMBER & THE HONOURABLE MR. WASEEM AHMED
    By, ACCOUNTANT MEMBER

    For the Appellant: K.P. Shah, AR. For the Respondent: Apoorva Bhardwaj, Sr.DR.



Judgment Text

Rajpal Yadav, Judicial Member:

1. Assessee is in appeal before the Tribunal against order of ld.CIT(A), Ahmedabad dated 13.10.2016 passed for the assessment year 2012-13.

2. Assessee has taken five grounds of appeal, which are argumentative and descriptive in nature. In brief, its grievance is that the ld.CIT(A) has erred in confirming addition of Rs.23,46,939/- which was added by the AO with aid of section 50C of the Income Tax Act, 1961.

3. Brief facts of the case are that he assessee has filed its return of income on 29.9.2012 declaring total income at Rs.4,62,100/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has sold two immovable properties in which it has shown documented sale consideration at Rs.35.00 lakhs, whereas for the purpose of stamp duty, value determined by the Sub-Registar office, Sanand was at Rs.79,22,449/-. The AO sought explanation of the assessee as to why value on which stamp duty was paid be not deemed as full consideration received on transfer of these two properties for the purpose of computing capital gain under section 48 of the Income Tax Act. The assessee has given reply which has been reproduced by the AO on page no.3 of the assessment order. The stand of the assessee before the AO was that, it had purchased two plots from Shri Pravinbhai D. Bhanushali bearing plot no.143/1 (1979 sq.meter) and 143/2 (894 sq.meters) situated at Sanand on 30.3.2011. It has further purchased plot bearing no.139/1 and 141/3+4 on 23.9.2010 from Ambika Polypack Industries. The assessee wanted to construct godown on the above premises. However, these plots did not have direct access to and from the road. At the time of purchase seller has given an undertaking that he would arrange access to these plots by road. Ultimately, he could not arrange roads upto these plots, and hence under compelling circumstances, these plots were resold to the original vendor. The stand of the assessee is that it has not resold them rather it has cancelled the sale deed. The ld.AO was not satisfied with the stand of the assessee. He found difference in the value stated in the sale deed vis--vis adopted by the stamp duty valuation authority for the purpose of registration of sale deed. This difference was worked out at Rs.44,22,449/-. It was added to the total income of the assessee for calculating long term capital gain under section 50C.

4. Dissatisfied with the addition, the assessee carried the matter in appeal before the ld.CIT(A). The ld.CIT(A) partly accepted appeal of the assessee. He accepted the stand of the assessee that as far as plot no.143/1 and 143/2 are concerned, it has cancelled the sale deed, because it got refund of Rs.10 lakhs which was paid by it for the purchases. As far as plot no.139/1 and 141/3+4 are concerned, the ld.CIT(A) did not accept the stand of the assessee. The discussion made by the ld.CIT(A) on this issue reads as under:

"4.6. With regard to the addition u/s.50C of the Act, it was observed by the AO that the appellant is a limited liability partnership firm and dealing in import, export, sale and distribution of agricultural products and cattle feeds. The AO has noticed that the assessee has shown two immovable properties which are registered with the Sub-Registrar Office, Sanand. It is further noticed that the total document amount shown is of Rs.35 lakhs as against the value determined by the Sub-Registrar at Rs.79,22,449/-. The AO has addition of the difference of Rs.44,22,449/- u/s.50C of the Act.

During the appellate proceedings, the appellant has contended that it had purchased two plots one on 30.3.2011 and second on 23.09.2010. It is further contended that the above mentioned plots did not have direct access to approach road and the assessee was assured by the seller that the same will be made available to the assessee. It is further contended that the seller could not make the due arrangements of the road and on account of the issue of non-accessibility to the plot it was not possible to make any of these plots. The appellant has also contended that the market value of the said will be automatically depressed and plot would not have been of any use other than those who were in its immediate adjointment. The appellant has further contended that it was able to convince the vendors to refund money back with some compensation and accordingly two deeds were executed one clearly stating as cancellation deed and second with partial compensation. In respect of other plot which was purchased at a price of Rs.17,50,000/-, the transaction is cancelled by receiving a sum of Rs.25 lakhs and by mistake it is executed as a sale deed but the essence of the transaction does not part a nature of sale. The appellant has also furnished affidavit from the vendors confirming the above transactions of cancellation. The appellant has also relied upon the case of Smt. D. Anitha of Hyderabad ITAT wherein it is held that where the property was encumbered and thus she was not absolute owner of property, while computing capital gain arising from transfer of such property, market value of property as taken for purpose of payment of stamp duty could not be adopted as sale consideration by adopting provisions of Section 50C of the Act.

The facts of the case and the submissions are considered. The main contention of the appellant is that the plots purchased by it were of no use due to absence of access of road and it has to cancel the transactions and gave back the plots to the original owner. Therefore, these are not to be considered as sale and provisions of Section 50C is not applicable on such transaction. The contention of the appellant is found to be acceptable in respect of plot No.143/1 and 143/2 at Sanand purchased from Pravinbhai B. Bhanushali. The appellant has purchased this plot for a price of Rs.10 lakhs on 30.3.2011 and same was given back to the original owner by way of cancellation deed at the same price of Rs.10 lakhs on 25.07.2011. The appellant has also furnished affidavit from Shri Pravinbahi D. Bhanushali clearly stating that the transaction is cancelled. Considering these facts, it cannot be said that this transaction is a sale which comes under the purview of Section 50C of the Act.

With regard to the other plot No.139/1 and 141/3 + 4 purchased from Ambica Polypack Industries, the contention of the appellant is not found to be correct. The appellant has purchased this plot for a price of Rs. 17,50,000/- on 23.09.2010 and it was sold for a consideration of Rs.25 lakhs though to the same person. Here the contention of the appellant is that by mistake this deed is executed as a sale deed. The appellant has also furnished affidavit of Pravinbhai B. Bhanushali who is the partner of the same firm. This document of sale is registered as sale deed before the Sub-Registrar, Sanand on a higher price. This cannot be treated as cancellation deed and the AO has rightly applied the provisions of Section 50C of the Act for the sale of these plots. Thus the ground of appeal is partly allowed."

5. Before us, the ld.counsel for the assessee reiterated submissions as were made before the ld.CIT(A). He contended that with regard to second plot, the lawyer who got the alleged deed drafted committed a mistake by mentioning it as a sale deed instead of cancellation deed. He further contended that there is no transfer of plot in this exercise and section 50C ought not to be applied. During the course of hearing, he produced site plan wherein geographical location of plots is being displayed. On the strength of this site plan, he contended that remaining plot nos.139/1 and 141/3+4 are concerned, they are of no use to the assessee because it has purchased the specific area including plot no.143/1 and 143/2. Once the deed for 143/1 and 143/2 stand cancelled and accepted by the ld.CIT(A), then it is to be construed that the assessee could not fetch price equivalent to the one on which stamp duty was paid. The potential of remaining plot from a big chunk had reduced the price substantially. This encumbrance ought to be considered by the AO. Thus, alternatively he contended that if the deed for plot no.139/1 and 141/3+4 is being not accepted as cancellation deed, then issue be remitted to the file of the AO for making a reference to the DVO under section 50C(2) of the Income Tax Act for determining fair market value of the plot. On the other hand, ld.DR relied upon the order of the ld.CIT(A).

6. We have duly considered rival submissions and gone through the record carefully. As far as the stand of the assessee that it has cancelled the deed qua plot no.139/1 and 141/3+4 is concerned, no doubt, it has filed an affidavit in support of its contentions. But a plot which was purchased on 23.9.2010 by executing legal documents, whose mutation must have been sanctioned in the revenue record, cannot be cancelled simply by executing other deed. The assessee ought to have filed a suit for declaration in the Civil Court for cancelling the deed of 23.9.2009, it has executed fresh deed on 30.1.2012 for a consideration of Rs.25 lakhs. The earlier purchase deed executed on 23.9.2010 was for Rs.17.50 crores. How it could be said that original deed was cancelled ? The ld.first Appellate Authority has rightly rejected this stand of the assessee. If the original deed was cancelled, then status of the plot as on 23.9.2010 would be restored. Here the assessee has created fresh right to Ambica Polypack Industries.

7. As far alternative contention is concerned, we are of the view that section 50C provides that where the consideration received or accruing as a result of transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall for the purposes of section 48, be deemed to be the full value of the consideration. In other words, full consideration mentioned in section 48 is to be replaced by the consideration on which value of the property was adopted for the purpose of payment of stamp duty.

8. Sub-Section (2) of section 50C further contemplates that in case assessee alleges that stamp duty valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer, then, the AO may refer the valuation of the capital

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asset to the Valuation Officer. No doubt the assessee had purchased an area of 2468 sq.meters, 1936 sq.meters, 1979 sq.meters and 893.sq.meters consisting of four survey numbers. Out of that cancellation qua area 1979 sq.metes and 893 sq.meters (143/1 and 143/2) stand accepted by the ld.CIT(A). If an industrialist wants a particular piece of land and that fallen short of expectation of its potential user, then it would make a distress sale qua the remaining area. It is also pertinent to observe that none of the authorities have examined, whether the remaining area has access from the road or not. Hence, in order to ascertain fair market value as contemplated in section 50C(2), a reference ought to be made to DVO. We set aside both orders of the ld.Revenue authority below. Restore these issues to the file of AO and direct him to make a reference under section 50C(2) of the Act to the DVO for determining fair market value of the plot as on the date of sale i.e. 31.1.2012. On the basis of that report, he would work out capital gain assessable in the hands of the assessee. 9. In the result, the appeal of the assessee is partly allowed for statistical purpose.
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