Guidance value as per the provisions of section 50C of the I.T.Act for calculating capital gains

This Income Tax Appellate Tribunal ruling addresses the use of guidance value for calculating capital gains under Section 50C of the IT Act. The Assessing Officer used the property's guidance value, which exceeded the sale deed amount, to determine capital gains. The tribunal found that the assessee's mother had participated in assessment proceedings, dismissing the ground of non-service of notice.

IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE “SMC-B” BENCH, BANGALORE
Before Shri George George K, Judicial Member
ITA No.155/Bang/2020 : Asst.Year 2008-2009

Smt.Arifa Yasmeen
No.635, 34th Cross, 2nd Main Road
4th T Block, Jayanagar
Bengaluru – 560 041.
PAN : ACCPY6958P.

vs

The Income Tax Officer
Ward 7(2)(1)
Bengaluru.

Appellant by : Smt.Preethi Patel, Advocate
Respondent by : Sri.Ganesh R.Ghale, Standing Counsel
Date of Hearing : 16.09.2021
Date of Pronouncement : 20.09.2021

O R D E R

The Registry has marked delay of 2 days in filing this appeal before the Tribunal. At the time of hearing, the learned AR submitted that the appeal has been filed on Monday, 03rd February, 2020, thus, the intervening days were Saturday and Sunday, being 1st and 2nd February, 2020. Therefore, the learned AR submitted that there is no delay in filing this appeal. After perusing the material on record, I find that there is no delay in filing this appeal before the Tribunal. Hence, I proceed to dispose of the appeal on merits.

2. The assessee along with co-owners had sold a site of BTM Layout, Bangalore on 13.07.2007 for a total consideration of Rs.34,50,000. During the course of assessment proceedings, notice u/s 142(1) was issued and assessee’s mother appeared and the case was discussed with her. The Assessing Officer noticed that guidance value of the property which was sold on 13.07.2007 was Rs.41,82,000. As the guidance value was more than the value recorded in the sale deed, the Assessing Officer adopted the guidance value as per the provisions of section 50C of the I.T.Act for calculating capital gains.

3. I have heard rival submissions and perused the material on record. As regards the issue of non-service of notice u/s 148 of the I.T.Act, I find that the assessee’s mother had appeared before the A.O. and notice was served to her. The assessee’s mother had had participated in the assessment proceedings. Therefore, the ground taken in the appeal regarding non-service of notice u/s 148 of the I.T.Act is dismissed.

4. In the result, the appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced on this 20th day of September, 2021.

Please find attached the enclosed file for the full judgement