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TMI Blog2011 (7) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Addition of Rs. 24,98,600 on the basis of DVO's report - As per provisions of section 50C the "full value of consideration" in the absence of any material to show that under-hand money had been passed, has to be taken as per stamp valuation authority - Therefore, if the sale has been made at the rates prescribed by the stamp valuation authority, no addition can be made - However, if sale has been made at lower value than the value prescribed by stamp valuation authority for the purpose of stamp duty, the Assessing Officer will adopt the valuation as per Stamp Duty Act - Therefore, direct the Assessing Officer to adopt the full value of consideration, as per provisions of section 50C of the Act - Decided in favour of assessee. - 1877 (DELHI) OF 2011 - - - Dated:- 15-7-2011 - R.P. TOLANI, K.D. RANJAN, JJ. Arun Kishore for the Appellant. B. Kishore for the Respondent. ORDER K.D. Ranjan, Accountant Member. This appeal by the assessee for assessment year 2005-06 arises out of order of the ld. CIT (Appeals)-XXV, New Delhi. 2. The ground of appeal raised by the assessee reads as follows : "1. That the order of the ld. CIT (Appeals) 25, dated 8-3-2011 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion cell either under section 50C or under section 55A of the Act. The ld. CIT(A) after considering the facts of the case observed that under the Income-tax Act reference to the valuation cell can be made under three different sections, namely, section 50C, section 55A and section 142A of the Act. He further observed that all the three sections talk about reference by the Assessing Officer to DVO for the valuation of the property as per market value. The Assessing Officer had referred the valuation of the property to the DVO for the purpose of estimating the fair market value of the property. He further observed that mentioning of a wrong section would not take away the statutory power of the Assessing Officer for making reference to the valuation cell. He further noted that the assessee had not disputed the fact that the Assessing Officer does not have power to refer the valuation to the DVO under the Act. The DVO has followed proper procedure for valuation of the property, after allowing the assessee an opportunity of being heard. He also noted that even mentioning of wrong section would not vitiate the power of the Assessing Officer to refer the valuation of the property to DVO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital asset under certain circumstances. Therefore, reference under section 55A of the Act, cannot be made for the purpose of estimating the full value of consideration received or accrued. Further provisions of section 50C of the Act, defines the scope of full value of consideration in certain cases. Under section 50C(1) in a case where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government [stamp valuation authority] for the purpose of payment of Stamp Duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to the full value of the consideration received or accruing as a result, of such transfer. Thus, for the purpose of computing capital gains in respect of capital asset being land and building or both, the full value of consideration will be the value adopted or assessed for the purpose of stamp duty. Sub-section (2) of section 50C empowers the Assessing Officer for making reference to the valuation officer in the cases where the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second floor, Hawa Singh Block, Asian Games Village complex having similar specifications after allowing due factors for adjustment to bring both the properties at par on the date of valuation. The ld. CIT(A) accordingly confirmed the addition of Rs. 24,98,600 made by the assessing officer on the basis of valuation of the property by DVO. 8. Before us the ld. AR of the assessee submitted that the impugned property is situated in Sarita Vihar whereas comparison has been made with the property situated in Asian Games Village Complex. He further submitted that provisions of section 50C of the Act are applicable and, therefore, no addition can be made on the basis of DVO's report as the assessing officer had not brought any material on record to prove that under-hand money had been passed on. He also submitted that capital gains are to be computed on the basis of full value of consideration and not on the basis of fair market value of the property. On the other hand, the ld. Sr. DR supported the order of the ld. CIT (Appeals). 9. We have heard both the parties and gone through the material available on record. Under section 48 of the Income-tax Act the capital gains are to be comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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