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TMI Blog2011 (5) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. ORDER 1. These appeals are consolidated and heard together and are being disposed of by this common order. 2. I.T.A.NO. 1660/M/10: In this appeal the assessee has raised the following grounds: "1. The learned CIT(Appeals) erred in confirming the value under section 50(C) as per valuation of Stamp Valuation Authorities. Further he has failed to appreciate the fact that the valuation as per DVO is also highly excessive. 2. The learned CIT(Appeals) has grossly erred in holding that the proceedings of the DVO have become unfructuous although Assessment Order was passed subject to rectification of DVO's Valuation Report and under section 50(C)(2) the value determined by the DVO is binding on the Assessing Officer." 3. After hearing both the parties, we find that during the assessment proceedings Assessing Officer noticed that assessee has sold 1/3rd share of flat No. 21-C, 2nd Floor, Mittal Towers, C Wing, Nariman Point, Mumbai. The total sale consideration was shown at Rs. 1.72 crores. The assessee was requested to furnish the document of sale and purchase. The assessee filed a copy of the letter of Mulla Mulla Craigie Blunt Caroe Advocates, Solicitors and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en considered. In fact, in the case of Mrs. Nandita Khosla, Assessing Officer has himself accepted the total sale consideration at Rs. 2,39,32,000 as determined by the DVO in the rectification order passed under section 154. 6. The ld. Counsel of the assessee further argued that assessee had filed the copy of the valuation report from one of the approved valuers M/s K. C. Gandhi Co., copy of which has been placed in the paper book at pages 4 to 12. She also carried us through various contents of the report and pointed out that registered valuer had taken various instances and one of the instances at para 6(b) is of the same building. He then referred to page-11 which is the last page of the valuation report wherein the property has been valued at Rs. 8000 per sq.ft. Then she referred to the valuation report of the DVO and pointed out that DVO at page-7 of his report, which is placed at page 21 of the paper book, had also taken instances of the same building, but the last instance where the property has been sold at Rs. 16,131 is of the ground floor which was sold to the Jet Airways. The ground floor always fetches much higher value than the higher floors. She submitted that out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or assessed [or assessable] by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer; (b) the value so adopted or assessed [or assessable] by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation 1. For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). Explanation 2. For the purposes of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct valuation." Thus, from above it is clear that in some cases where assessee has pointed out strong reasons that sale consideration was less than the value determined for stamp duty purposes, then such cases have to be referred to the DVO. Obviously, in such cases the sale consideration which has been deemed to be the value adopted for stamp duty purposes as per the main provision, would be the value adopted by the DVO. Therefore, in this case the value determined by the DVO would be the deemed sale consideration. In any case, we also find that the value adopted by the approved valuer cannot be adopted because as pointed out by the ld. DR., DVO has considered all the instances which are of other buildings, except for one instance at 6(b) which is of same building. Further, the approved valuer has calculated the final value on carpet area basis, which is not correct, because it is a common knowledge that buildings are purchased and sold through sale deed or other agreements which clearly refer to the total area, which is only of super area which includes walls, balconies, proportionate share of common corridors, staircases, lift area and other open spaces. We also find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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