Whether provisions of section 50C are applicable when price of land is fixed by bank & not assessee?

Respected Members

?

Dive into jurisprudence, watch out today's income tax case law video to get a concise exploration of legal principles and their real-world applications.

?

YouTube video link for Hindi video:?https://www.youtube.com/watch?v=O1vLsmIAHPc

?

YouTube video link for English video:?https://www.youtube.com/watch?v=FVHTdO9OORE

?

YouTube shorts video link:?https://www.youtube.com/shorts/sPV_zdDr-ds

?

Short note of today's case law for quick reference:

?

[2024] 467 ITR 163 (Del)

[IN THE DELHI HIGH COURT]

?

PRINCIPAL COMMISSIONER OF INCOME-TAX

v.

H. T. L. LTD.

?

RAJIV SHAKDHER and GIRISH KATHPALIA JJ.

?

1. For A.Y. 2014-15, assessment order was passed by A.O. u/s 143(3).

?

2. The Principal Commissioner was of the view that the land sold by the assessee was below the value adopted by the concerned authority for levy of stamp duty and therefore, the assessment made was contrary to the provisions of section 50C, since this aspect was not inquired into and there was under assessment.

?

3. The Tribunal set aside the revision order u/s 263.

?

4. On further appeal, High Court dismissed the appeal of the revenue and held that:

?

5. A.O. had issued notice to the assessee in respect of land in question.

?

6. Assessee replied that it was not the assessee who had effectuated the sale of land in question.

?

7. The bank which was the assessee’s secured creditor was unable to auction the land.

?

8. It was held at a meeting by the consortium of lenders to fix the reserve price of the land and it was the bank which had finally effected sale of the land to recover the dues owed by the assessee.

?

9. The Tribunal had rightly concluded that Principal Commissioner had failed to notice the underlying facts, while invoking the powers u/s 263.