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TMI Blog2013 (7) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... luation exceeds stamp duty valuation – In such circumstances, capital gain to be computed as per stamp duty valuation – Action of Assessing Officer perfectly in accordance with law in view of provisions of Section 50C of Income-tax Act read with Section 16A of Wealth-tax Act – Decided against the assessee. - ITA No.5928/Del/2012 - - - Dated:- 28-6-2013 - Shri G. D. Agrawal And Shri Chandra Mohan Garg,JJ. For the Appellant : Shri S. K. Monga, Advocate. For the Respondent : Shri Tarun Seem, Sr. DR. ORDER Per G. D. Agrawal, VP : This appeal by the assessee is directed against the order of learned CIT(A), Dehradun dated 5th October, 2012 for the AY 2005-06. 2. The grounds raised by the assessee read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration for computing the capital gain. On appeal, the ITAT vide order dated 9th March, 2010 in ITA No.1541/Del/2009 set aside the matter to the file of the Assessing Officer with the following direction:- 3.3 We have heard both the counsels and perused the records. We find that assessee has agitated that sale consideration adopted as per the Stamp Valuation Authority of ₹ 9.89 lacs is not correct and the same is excess of the fair market value of the property as on the date of transfer. We find that Section 50C(2) does envisage that if the assessee claimed before any AO that the value adopted or assessed by the Stamp Valuation Authority exceeds the fair market value of the property, the AO may refer the valuation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e plot. 6. Learned DR, on the other hand, stated that as per Section 50C, either the stamp duty valuation is to be considered or the fair market value determined by the DVO is to be considered. Once the fair market value is determined by the DVO which is less than the stamp duty valuation, the Assessing Officer has to determine the capital gain as per the DVO's report. He, therefore, submitted that the order of the Assessing Officer is quite fair and reasonable and the same is rightly sustained by the learned CIT(A). 7. We have carefully considered the arguments of both the sides and perused the material placed before us. Section 50C reads as under:- 50C. (1) Where the consideration received or accruing as a result of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 section, the expression assessable means the 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-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned, proceed to complete the assessment in conformity with the estimate of the Valuation Officer. 9. From the above, it is evident that after the receipt of report of the valuation officer, the Assessing Officer is bound to complete the assessment in conformity with the estimate of the valuation officer. That sub-section (3) of Section 50C of the Income-tax Act provides that where the valuation determined by the DVO exceeds the stamp duty valuation, then, the stamp duty valuation is to be considered. Meaning thereby, that the Assessing Officer is required to compute the capital gain as per the valuation report of the DVO except where his valuation exceeds the stamp duty valuation. In such circumstances, the capital gain is to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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