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TMI Blog2013 (2) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall be deemed to be the full value of the consideration - Further where the assessee claims that the value adopted or assessed for stamp duty purposes exceeds the fair market value of the property as on the date of transfer, the Assessing Officer may refer the valuation of the relevant asset to a Valuation Officer in accordance with section 55A of the Income Tax Act - This preposition of law has been upheld in the case of C.W.T. vs. Dr. H.Rahman[1991 (2) TMI 97 - ALLAHABAD HIGH COURT] - It is crystal clear that generally, when the A.O. has obtained the D.V.O. Report then the same is binding – ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.1, Vikas Khand, Gomti Nagar, Lucknow for a consideration of Rs.51,75,000/. The sale deed was registered on 27.04.2002 and the Stamp Authorities levied the stamp duty on a value of Rs.1,38,00,000/- as per the circle rate. The A.O. invoked the provisions of section 50C for substitution the recorded sale consideration of Rs.51,75,000/- to Rs.1,38,00,000/- being the valuation done by the Stamp Valuation Authorities. The assessee took a plea of section 50C (2) of Income Tax Act and claimed that the value adopted by Stamp Duty Authorities exceeded the fair market value as on the date of the transfer. The assessee also submitted a report of assessee's registered valuer who valued the property at Rs.48,37,500/- as on the date of transfer. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le dispute between the parties relates to:- Whether the valuation done by the Stamp Valuation Authorities would be taken as sale consideration as done by the A.O.? or Whether valuation done by the D.V.O. would be substituted as sale consideration? For ready reference Section 50C is reproduced here as under:- "50C. (1) 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 (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty. (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed or assessable by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed or assessable by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer." (Emphasis added) It may be mentioned that the section was inserted by the Finance Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, the provisions of Wealth Tax Act are applicable. This Hon'ble Court observed that:- "A reading of the sub-section shows that the Wealth Tax Officer has no option but to proceed to complete the assessment in conformity with the assessment of the Valuation Officer in so far as the valuation of the asset in question is concerned. This is also the view taken by a Division Bench of this Court in M.C.Khunnah vs. Union of India [1979] 118 ITR 414." In view of above discussions and by considering the totality of the facts and circumstances of the case, it is crystal clear that generally, when the A.O. has obtained the D.V.O. Report then the same is binding. Therefore, we find no reason to interfere with the impugned order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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