Amit Girdharbhai Patel vs. ACIT

Parties Involved

Facts Summary

The assessee, Amit Girdharbhai Patel, filed his Return of Income for the Assessment Year 2012-13 declaring a total income of Rs.90,38,230/-. Regular assessment was completed on 10-02-2015. However, the Assessing Officer received information that the assessee sold an immovable property for Rs.1,02,00,000/- whereas the stamp duty value was Rs.2,39,32,400/-, attracting Section 50C of the Income Tax Act, 1961. The assessment was reopened by issuing a notice under Section 148 of the Act dated 31-03-2019. The assessee filed a return on 02-04-2019 declaring the same total income. The Assessing Officer noted that the assessee made a registered Agreement of Sale with Shri Nilesh V Shah to transfer the land for Rs.80,00,000/- and received Rs.9,00,000/- as advance. The final sale deed was registered on 13-03-2012 for Rs.1,02,00,000/-. The Stamp Duty Valuation Authority valued the land at Rs.2,39,32,400/-. The assessee was the seller, Shri Rameshbhai Manibhai Patel was the purchaser, and Shri Nilesh V. Shah was the confirming party.…

Legal Issues

• 1. Whether the Assessing Officer was justified in reopening the assessment under Section 147 of the Act.
• 2. Whether the addition made by the Assessing Officer under Section 50C of the Act was justified.
• 3. Whether the provisions of Section 50C of the Act were applicable to the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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