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TMI Blog2012 (6) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... there is nothing with the AO to suggest that the assessee had received more than what is stated in the sale deed and, therefore, full value of consideration cannot be adopted as per the DVO's report which represent fair market value of industrial plot sold. Adoption of DVO's report without providing opportunity of being heard is also against the principles of natural justice. no infirmity in the order passed by the ld. CIT (A). appeal filed by the Revenue is dismissed. - IT APPEAL NO. 1678 (DELHI) OF 2011 - - - Dated:- 17-6-2011 - RAJPAL YADAV, K.D. RANJAN, JJ. Ajay Vohra and Avdhesh Bansalfor the Appellant. B. Kishorefor the Respondent. ORDER K.D. Ranjan, Accountant Member. This appeal by the Revenue for assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting barred by limitation on the same day, he completed the assessment without allowing any opportunity to the assessee of being heard. The AO after allowing credit for investments in REC Bonds and capital gain account, charged the amount of Rs. 1,51,23,238/- under the head capital gains. 4. Before the ld. CIT (Appeals) the assessment order was challenged on the ground that the AO had finalized the assessment without affording opportunity of being heard to the assessee. The basis for valuation taken by the DVO was also incorrect. It was submitted that the plot of the assessee was situated in Naraina Indl. Area, Phase-II, New Delhi, which is under G category whereas the value of the reference plot taken for valuation purpose was situated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lot of land sold by the assessee worked out to Rs. 2,00,98,722/-. As against this the assessee's sale consideration declared was Rs. 2,90,00,000/-. He further noted that the assessee vide his letter dated 18/12/2009 had furnished copy of notification dated 18/07/2007 to the DVO with the working of value of land as per circle rates. However, the DVO in his report dated 30/12/2009 had adopted a base, a sale instance of plot of 2,023.41 sq. mts. at Okhla Indl. Estate, New Delhi sold on 18/02/2001 for Rs. 48,899/- per sq. mt. The DVO had adjusted the land rate by an increase of 1 per cent per month 1/4/2001 to 5/1/2007 and an increase of 10 per cent as the plot of land belonging to the assessee was of a smaller size and arrived at a value of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO obtained evidence that more than what was stated was received, no higher price could be taken to meet the basis of computation of capital gains. Relying on the decision of Hon'ble Supreme Court in the case of K.P. Varghese v. ITO [1981] 131 ITR 597/7 Taxman 13 the ld. CIT (A) held that onus of proving understatement of consideration has not been discharged by the Department. He accordingly deleted the addition. 5. Before us the ld. AR of the assessee submitted that the industrial plot has been sold at much higher rate than circle rates prescribed for G category of land. Under Section 50-C of the Act the full value of consideration is to be taken on the basis of value fixed by any authority of a State Govt. for the purpose of stamp valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Under section 50C of the Act for the purpose of computation of capital gains the full value of consideration has to be adopted as per circle rates. In a case where circle rates are higher than the fair market value of the property, sub section (2) of section 50C provides that the assessee can make request to the assessing officer to refer the matter to valuation officer for valuation of the property, as per market rates. Thus from the provisions of section 50C of the Act it is clear that for the purpose of computation of capital gains under section 45, the full value of consideration has to be taken as per circle rates prescribed by the State Govt. for the purpose of stamp valuation unless the AO has material in his possession to prove th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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