2010 (5) TMI 711 - AT - Income Tax

Summary

Issues involved:
The computation of long-term capital gain u/s 50C of the Income-tax Act, 1961.

Comprehensive details of the judgment:

Issue 1: Referral to Valuation Officer under section 50C(2) of the Act
The Assessing Officer did not refer the matter to the Valuation Officer as required by section 50C(2) of the Act, despite the assessee claiming that the circle rate exceeded the actual market value. The Tribunal found this failure incorrect and ordered the matter to be restored to the Assessing Officer for fresh adjudication after referral to the Valuation Officer. Both parties are allowed to raise further contentions and provide additional evidence for consideration.

Issue 2: Determination of sale consideration and capital gain
The Tribunal directed the Assessing Officer to decide the issue of sale consideration and capital gain after the referral to the Valuation Officer. The parties are permitted to present any other contentions and documents they deem appropriate under the law for the Assessing Officer's consideration.

Conclusion:
Both appeals by the different assessees are allowed for statistical purposes, with the decision pronounced on 25th May 2010 after the hearing.