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2008 (2) TMI 476 - ITAT JODHPURCapital gain computation - Property sold for a value less than the DLC rate - determination of the valuation on the date of the sale of the property in question - invoking section 50C - HELD THAT:- The provisions of s. 50C are deeming provisions and according to which if the assessee declares sale consideration for the purposes of computation of the capital gain which are lower than the DLC rate, the DLC rates have to be replaced as the actual cost of consideration. We are of the opinion that in case the AO does not agree with the explanation of the assessee with regard to lower consideration disclosed by him then he should refer the matter to DVO for getting its market rate established as on date of the sale to arrive at the correct sale consideration. If this provision is read in the sense that if the AO is not satisfied with the explanation of the assessee then he 'may' or 'may not' send the matter for valuation to the DVO then in that case this provision would be rendered redundant. Ld AR has relied on the decision of the Hon'ble Supreme Court in the case of Ashok Leyland Ltd. vs. Union of India & Ors. [1997 (2) TMI 451 - SUPREME COURT] held that the deeming provisions are rebuttable one In our considered opinion the befitting reply of all the queries arouse in our minds as well as raised by the parties is that the matter should be restored back to the file of the learned AO with a direction that he shall refer this matter of valuation in the light of sub-s. (2) of s. 50C to the DVO for determining the consideration of this plot sold by the assessee under s. 50C of the Act. The other connected grounds are also related to this main ground. Therefore, the entire appeal is restored back to the file of the AO with the direction that he would do as directed above and also give opportunity of hearing to the assessee as per law. In the result, the appeal is allowed for statistical purposes.
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