2017 (7) TMI 1006 - HC - Income Tax

Sale of immovable property - Transaction assessed taking into consideration the stamp value assessment - nature of consideration that is made by the competent authorities keeping in view Section 50C - Held that - Taking note that the transaction disclosed by the assessee regarding sale of immovable property for the purpose of consideration of the capital gains at ₹ 61,00,000/-, keeping in view the fact that the stamp value assessment for it had fixed the value of such property at ₹ 92,52,000/, the Assessing Officer has taken into consideration the same. In view of the objections raised by the assessee and keeping in view the provisions contained in Section 50C, reference was made to the District Valuation Officer, Bengaluru. The District Valuation Officer through the order dated 17.12.2008 has fixed the fair market value of the property in question at ₹ 1,50,11,400/-. It is in that light having kept in view the provision of the Act and the procedure that was required to be adopted, since in that circumstance, the value fixed by the stamp valuation authority was necessary to be taken into consideration, the value of ₹ 92,62,000/- was taken into consideration and assessment has been completed. The consideration as made therein has been upheld by the Tribunal as well. Therefore, in the circumstance where the provision of law has been kept in view and the procedure has been followed, at this juncture to contend that a question of law arises in this appeal would not be acceptable. The procedure has been adopted and stamp value assessment is applied. Further though the learned counsel for the appellant contends that the valuation as made by the District Valuation Officer is without basis, the said aspect cannot be considered in an appeal of the present nature by treating it as a question of law for consideration herein as the assessment made therein a factual determination.

Summary

Issues:
Assessment based on stamp value assessment under Section 50C of the Income Tax Act, 1961.

Analysis:
The appellant challenged the order passed in ITA No.142/PNJ/2014 concerning the assessment year 2006-07, where the Assessing Authority considered the stamp value assessment of the property in question for the sale transaction. The appellant contended that the nature of consideration by the authorities under Section 50C of the Income Tax Act needed to be reviewed.

The Assessing Officer considered the stamp value assessment of the property at ?92,52,000, despite the appellant's objections. The District Valuation Officer later fixed the fair market value at ?1,50,11,400. The appellant argued that the assessment should have considered the higher valuation. However, the Tribunal upheld the assessment based on the stamp value assessment.

The appellant also referenced a decision from the High Court of Panjab & Haryana, arguing that the Tribunal's consideration was incorrect. The court noted that the procedure under Section 50C was followed, and the stamp value assessment was applied. The appellant's claim that the District Valuation Officer's valuation lacked basis was dismissed as a factual determination, not a legal question.

Ultimately, the court found no legal issue for consideration in the appeal, as the assessment was in line with the law and procedure. The appeal was deemed meritless and disposed of accordingly.