Selling flats at amount lesser than stamp duty justified as flats had no parking space & electricity connection: ITAT

Selling flats at amount lesser than stamp duty justified as flats had no parking space & electricity connection: ITAT

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Selling flats at amount lesser than stamp duty justified as flats had no parking space & electricity connection: ITAT

Short Overview: 
Peerless General Finance & Investment Company Ltd. v. DCIT – [2021] 132 taxmann.com 80 (Kolkata – Trib.)
Assessee-company sold four flats and offered capital gains of certain amount on same.
 Assessee computed capital gain lower than stamp duty valuation (SDV) of said flats for reason that said flats did not have a car parking space, and there was also no scope of getting a high voltage electric connection.
Assessing Officer (AO) accepted the same and passed an assessment order. The Pr. Commissioner invoked revision jurisdiction on the ground that impugned order of AO accepting capital gain offered by assessee at lesser amount than SDV of flats was erroneous and prejudicial to revenue. Assessee filed appeal against revisional order before the Kolkata Tribunal.
The Tribunal has held that as evident from the submission made by the assessee before the AO, the actual sale consideration adopted, which was lower than the stamp duty valuation, was duly explained by the assessee, and the same was also supported by a valuation report of the registered valuer.
It was also relevant to note here that the assessee also made a specific request to the AO to refer the matter relating to the valuation of the property to DVO in terms of section 50C(2) if the lower sale consideration actually received by the assessee than the stamp duty value as justified by it was not acceptable.
No such reference, however, was made by the AO.
Thus, it could be held that the explanation offered by the assessee in the matter was found acceptable by the AO, and on appreciation thereof, a well-considered view was taken by the AO.
Accordingly, the impugned order passed by the ld. Pr. CIT revising the order of the AO on this issue was not sustainable.

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