| Question And Answer | |
|---|---|
| Subject: | DLC or circle rate of immovable property fixed by stamp duty/ Registrar office |
| Category: | Income-Tax |
| Querist: | SURENDRA MEHTA, ADVOCATE |
| Answered by: | Research Team |
| Tags: | Capital Gains, DLC rate, purchaser of property, stamp valuation |
| Date: | July 16, 2021 |
Sir,
Whether AO can make addition in the case of purchaser of property of the diffrence of actual purchase as per document and DLC rate fixed by the registrar for stamp duty purpose. In my case actual purchase rate is lower to the DLC rate. whether declaration of deemed income is necessary. Presently, transactions are made below the DLC rate. Kindly clear whether DLC rate is only considered for capital gain purpose and it is not applicable to purchaser of the property.
Nitco Logistics Pvt. Ltd. v. JCIT (Amritsar)(Trib.) In CIT v. Sarjan Realities Ltd. (2014) 220 Taxman 112 (Mag.)(Guj.)(HC) The court held that the deeming fiction created by Section 50C applicable only to seller and not buyer.Also refer Nitco Logistics Pvt. Ltd. v. JCIT (Amritsar)(Trib.); www.itatonline.org (ITA No 437/ASR /2012 dt 5-9 -2014
However one has to consider section 56 (2) (x) (b) (B) of the Act , which was inserted with effect from 1.4 -2017