Mr Charan Singh, Greater Noida V. ITO, Noida

ITA 2490/DEL/2016

AI Insights

The case involves Mr. Charan Singh, the appellant, who contested the tax assessment on a property transaction involving a residential plot in Greater Noida. The property was reportedly sold to Smt. Arvind Kaur for Rs. 4,00,000, whereas the stamp valuation was significantly higher at Rs. 1,27,88,000. The Assessing Officer reopened the case based on this discrepancy and assessed a long-term capital gain, which was upheld by the CIT(Appeals). The appellant argued that the property was a gift, not a sale, but failed to provide sufficient evidence to support this claim. The Tribunal dismissed the appeal, agreeing with the lower authorities that the transaction was a sale, not a gift.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108577 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 25-06-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 03-05-2016
• Laws Referred To: Income-tax Act, Registration Act, 1908
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Sale consideration of property below Jantri Value; Deemed Gift on Purchase of immovable Property below Jantri value; Gift; Deemed to accrue or arise in india; Non compliance
• Section: 147; 50C

Judgement Text

1 ITA No. 2490/Del/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. 2490/DEL/2016 [Assessment Year: 2010-11 Mr. Charan Singh, B-33-34, Sector- Gama-I, Greater Noida. PAN- ARIPS7397H Vs Income-tax Officer, Ward-1(2), Noida. APPELLANT RESPONDENT Assessee represented by None Department represented by Shri Anuj Garg, Sr. DR Date of hearing 26.06.2023 Date of pronouncement 27.06.2023 O R D E R PER KUL BHARAT, JM: This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals)-1, Noida, dated 29.02.2016, pertaining to the assessment year 2010-11. The assessee has raised following grounds of appeal: “1. That in the facts and circumstances of the case and in law Ld CIT(A) erred in deeming gift of immovable property by appellant being Mama Sasur ( Mama of husband of donee ) to donee Mrs Arvinder Kaur as sale and consequently charging tax under the head "capital gain". 2. That in the facts and circumstances of the case and in law Id CIT(A) erred in invoking provisions of section 50C of Act to the gift of immovable 2 ITA No. 2490/Del/2016 property. 3. That in the facts and circumstances of the case and in law Ld CIT(A) erred in not taking cognizance of gift deed and other supporting documents executed because of non compliance of provisions of Registration Act, 1908 and provisions analogous thereto. 4. The appellant crave leave to add, amend or alter grounds of appeal before hearing.” 2. Facts giving rise to the present appeal are that the Assessing Officer was in possession of AIR information regarding sale of property i.e. residential plot no. 13C, Phase-III, village Tughalpur Haldauna, Greater Noida, admeasuring 1420.80 sq. Mtr. For Rs. 4,00,000/- to Smt. Arvind Kaur. The stamp valuation as per Section 50C of the Income-tax Act (the ‘Act’), was Rs. 1,27,88,000/-. The case of the assessee was, therefore, reopened u/s 147 of the Act and after giving notice to the assessee the Assessing Officer framed the assessment. Thereby he assessed income at Rs. 1,27,12,539/- after making addition of long term capital gain at Rs. 1,22,99,181/-. Aggrieved against this assessee preferred appeal before the learned CIT(Appeals), who after considering the submissions dismissed the appeal. Now the assessee is in appeal before this Tribunal. 3. At the time of hearing no one attended the proceedings. It is seen from the record that no one has been attending the proceedings on behalf of the assessee since 27.01.2021. The assessee has not sought any adjournment. Under these facts, 3 ITA No. 2490/Del/2016 appeal is taken up for hearing in the absence of the assessee and is being decided on the basis of material available on record. 4. The only issue for adjudication in this appeal is related to addition on account of difference in sale consideration as per sale-deed and circle rate determined by the Stamp Valuation Authority. The Assessing Officer treated the difference between the sale consideration as disclosed by the assessee and the circle rate as deemed income liable for capital gain tax. 5. Learned DR supported the orders of the authorities below and contended that the authorities below have rightly applied the provisions of Section 50C of the Act. As per the available information the sale consideration was stated to be at Rs. 4,00,000/- and the stamp valuation was at Rs. 1,27,88,000/-. 6. We have heard learned DR and perused the material available on record. Before Assessing Officer it was stated that the property was gifted but not sold. However, the Assessing Officer did not accept this explanation on the basis that Smt. Arvind Kaur had received sale consideration at Rs. 4,00,000/- i.e. Rs. 1,00,00/- in cash and Rs. 3,00,000/- by cheuqe. This fact is not controverted by the assessee by placing any material before us. Moreover, the learned CIT(Appeals) has rightly concluded that property once gifted cannot be sold or bequeathed. The assessee has failed to bring any evidence to controvert the finding of the lower authorities. Therefore, we do not find any reason to interfere with the finding of the 4 ITA No. 2490/Del/2016 authorities below. Same is hereby affirmed. Grounds raised in this appeal are rejected. 7. Appeal of the assessee is dismissed. Order pronounced in open court on 27.06.2023. Sd/- Sd/- (ANIL CHATURVEDI) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI