Law:

Section:

Section 158BC of the Income-tax Act, 1961 - Block assessment in search cases - Procedure for Stamp Valuation Authority's rates cannot be taken, by themselves, as price, for which property was purchased by purchaser, for purpose of making addition during assessment under section 158BC, read with section 158BB on account of undisclosed investment Search operation was undertaken on the residential premises of the assessee. Additions were made by the Assessing Officer on account of undisclosed investment in the agricultural lands and plots. The Assessing Officer held that the assessee had purchased the agricultural lands and plots during the block period. Copies of agreements/registered deeds were seized, and from scrutiny thereof it was observed that the investment accounted for regarding purchase of these properties was less than the market value taken by the registering authorities for these properties, and the difference was worked out and addition made. Held that a look at section 158BB shows that the computation of the income is to be made on the basis of the evidence found as a result of search, or requisition of books of accounts, or other documents, and such other materials, or information, as are available with the Assessing Officer, and relatable to such evidence. This provision does not include any fictional or presumptive income, to be liable to, or capable of being included in the aggregate of the undisclosed income. Obviously therefore, the determination of value of the assets acquired, i.e. the fair market price at the time of purchase, cannot be dependent on the norms/rates (DLC rates) as may be fixed by the concerned committees. There may be cases where the assets may have been purchased at the price higher than the DLC rates and rather there may be cases where the assets may be acquired at a price lesser than the DLC rates. The reasons for either of the situations are innumerable, and cannot be put into any strait-jacket. Further section 50C shows that the valuation put by the Stamp Valuation Authority is not required to be adopted as the valuation of the property, as a rule of thumb. It becomes a pure question of fact as to whether the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492