Noida Cyber Park Pvt Ltd vs ITO
The appellant is a company, and filed a return of income declaring income under the normal provisions of the Act whereas the tax was finally paid in terms of ‘Book Profit’. Since the consideration received by the assessee as a result of the transfer of the properties in question was lower than the value adopted by the ‘Stamp Valuation Authority’ for the purposes of payment of stamp duty, the Assessing Officer required the assessee to show cause as to why Section 50C could not be invoked for the purpose of computation of Capital Gains. As the report of the DVO was not received at the time of completion of assessment, the AO did not accept the points raised by the assessee, and, instead treated the value assessed by the stamp valuation authority as the full value of consideration for computing capital gains and accordingly, the difference between the consideration stated and the value adopted by the stamp valuation authority was added to the returned income. The Commissioner of Income Tax(A) dismissed the appeal of the assessee in toto and confirmed the addition as made by the Assessing Officer, thereby treating the report of the DVO as unmerited.
The present transaction of six properties in question does not warrant invoking of section 50C(1) as the property in question is not of the nature covered by section 50C(1). Delhi ITAT set aside the order of the ld. Commissioner of Income Tax(A) and directed AO to delete the addition.