Current Tax will possibly be assessed on basis of Guideline Price for Valuation of Stamp Accountability and Registration: Madras Extreme Courtroom


Gift Tax- Stamp Duty- Madras High Court - taxscan

A two-judge bench of the Madras Extreme Courtroom has held that the rule of thumb price for the intention of the valuation of stamp obligation and registration will possibly be taken as a result of the thought for the intention of determining the price of the current as inside the path of the price as per Schedule II of Current Tax Act.

The assessee is an individual. The division framed an analysis beneath the Act for the analysis yr 1991-92 on the underside that the taxable current exceeding Rs.12 lakhs has escaped analysis in reference to a sale of the immovable property. The Assessing Officer well-known that the value quoted contained within the sale deed was not true or in various phrases, the property was disposed of for an inadequate consideration falling contained inside the mischief of Half 4 of the Act. Accordingly, the analysis was achieved on 31.03.1995 demanding an entire amount of Rs.6,92,220/- as a gift tax and thereafter, by order dated 13.08.1996 imposed a penalty of Rs.50,000/-.

On attraction, the Tribunal upheld the order of the Assessing Officer. Aggrieved by the order, the assessee approached the Extreme Courtroom for low value.

Whereas upholding the order of the Tribunal, Justice T N Sivagnanam and Justice Sathi Kumar Sukumara Kurup well-known that the assessee sought to rely upon these paperwork to degree that the rule of thumb price was frequently been extreme and the market price of the property was low.

The Courtroom held that “in any event, we aren’t on the valuation nonetheless we’re right correct proper right here on the conduct of the assessee as to how he understood the thought of valuation and we’re clear that the assessee was clear in his ideas as to how the valuation is required to be achieved. As a consequence of this actuality, to state at this juncture that the valuation has not been achieved inside the case of Schedule II of the Current Tax Act is an argument that is acknowledged to be rejected. That apart, after we try the submissions made by the assessee previous to the CGT(A), an alternate submission was made stating that on and after 01.04.1987 after sub-section (2) was inserted in Half 3 of the Act, the tax will possibly be on the value of 30% on the price of all taxable gadgets and the Assessing Officer erroneously adopted the Schedule of prices given in Schedule I to the Act.”

“Thus the valuation of the property was achieved inside the case of the provisions of the Current Tax Act and contained within the technique of doing such evaluation, the Assessing Officer relied upon the registered sale deeds and the stamp obligation which was paid on such gadgets though the plain sale consideration mirrored in these paperwork had been hundreds so much a lot much less. In any event, this being a question of actuality, the burden was on the assessee to degree out that what he obtained was solely Rs.3 lakhs from the purchaser/partnership agency and by no means Rs.15,34,500/-. This facet of the matter having not been established by the assessee, we uncover that the Tribunal rightly affirmed the orders handed by the authorities beneath. So far as the attraction with regard to the penalty is frightened, we uncover that ample low value has been granted to the assessee by the Tribunal and we uncover that there is nothing to intrude with such order,” the Courtroom acknowledged.

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