IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH “B” CHANDIGARH BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No. 604/Chandi/2024 Assessment Year 2017-18

O R D E R

PER MAHAVIR SINGH – VICE PRESIDENT :

This appeal by assessee is arising out of order of learned Commissioner of Income Tax (Appeals)-5, Ludhiana (hereinafter referred as ‘the CIT(A)’, in Appeal No.10503/Bikaner/IT/CIT(A)-5/Ldh/2019-20 vide order dated 19.03.2024. The assessment was framed by the Assistant Commissioner of Income Tax, Circle Sri Ganganagar under sections 143(3) of the Income Tax Act, 1961 (hereinafter as ‘the Act’) vide order dated 27.12.2019 for Asst. Year

2017-18.

2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of the AO in adopting the deemed consideration under section 50C of the Act of the immovable property sold on 20.09.2016 at Rs.1,11,18,800/- and accordingly, assessing the Long Term Capital Gain (LTCG).

3. Brief facts are that the assessee filed his return of income for relevant A.Y. 2017-18 on 30.10.2017. During the course of assessment proceedings, the AO on perusal of details filed along with ITR, noticed that the assessee has declared Short Term Capital Gain of Rs.25000/- and accordingly, assessee was required to furnish details regarding this capital gain of Rs.25000/-. In reply, the assessee stated that he has sold a property i.e. No.SC-021-C admeasuring 500 sq. yards situated at 200 feet wide road in Narayan Vihar ‘O’ Phase 02 situated at Asarpura/Ganpatpura/Bhankrota, Ajmer Road, Jaipur to Shri Sanjay Chamria on 20.09.2016. The AO noted that the assessee has sold this plot to Shri Sanjay Chamaria for a sum of Rs.5,25,000/- on 20.09.2016. The assessee purchased this property through patta issued by M/s. Shree Salasar Overseas Pvt. Ltd. on 13.07.2012 for a sum of Rs.5,00,000/-. The Assessing Officer required the assessee to explain what is circle rate of this property on the date of sale i.e. 20.09.2016. As the assessee could not submit the circle rate, the Assessing Officer received information from Sub-Registrar, Sanganer-II, Jaipur through e-mail and as per information received, the DLC value of the land situated at Narayan Vihar is as under :

4. The Assessing Officer after applying the circle rates estimated the deemed consideration in provision of Section 50C of the Act at Rs.1,11,18,800/- and thereby computed the Long Term Capital Gain at Rs.1,04,58,800/- by observing as under:

“In light of the above facts, it is clear that assessee sold a commercial property i.e. Shop No. SC-021-C admeasuring 500 sq. Yards situated at 200 feet wide road in Narayan Vihar 'O' Phase 02 situated at Asarpura/Ganpatpura/ Bhankrota, Ajmer Road, Jaipur, to Sh. Sanjay Chamria on 20.09.2016 DLC value of commercial property situated at exterior location at Narayan Vihar is Rs. 26600/- per sq. meter. One square yard is equilant to 0.836 square meter, accordingly, the area of the shop in square meters comes to 418 sq. mtr. (500 x 0.836). Hence, the DLC value of the above shop sold as on 20.09.2016 comes to Rs.

1,11,18,800/- (418 sq. mtr. x Rs. 26600 per sq. mtr.)”

5. Aggrieved, assessee preferred appeal before the CIT(A). The CIT(A) confirmed the action of the AO. Aggrieved, assessee is in appeal before the Tribunal.

6. We have heard the rival contentions and gone through the facts and circumstances of the case. We noted that the first contention of the assessee is that for ascertaining the fair market value for the purpose of computation of deemed capi