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TMI Blog2014 (2) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... hat during the previous year corresponding to assessment year 2007-08, the assessee has sold two properties - one at City Centre (The Mall, Kanpur) and the other at Naya Ganj, Kanpur. The Assessing Officer invoked the provisions of section 50C of the Act and computed the capital gains accordingly having rejected the request of the assessee for making reference to the DVO for valuation of the property on the ground that the assessee has disputed the valuation determined by the Stamp Valuation Authority. While denying reference to the DVO, the Assessing Officer has also observed that in the light of provisions of section 50C(2) of the Act, a reference to the DVO cannot be made where the assessee has disputed the valuation so adopted by the St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Authority before the concerned authority. But the ld. CIT(A) has made a reference of this argument as raised before the Assessing Officer, whereas the assessee has filed an affidavit before the ld. CIT(A) deposing therein that he made an oral statement before the Assessing Officer on the basis of the verbal information of the assessee's Civil Counsel. But whenever assessee was asked to file documentary evidence by the Assessing Officer, the assessee could not file the documents as the assessee did not have it. He has made declaration of this fact through his affidavit before the ld. CIT(A). Instead of verifying these facts stated on oath by the assessee before the ld. CIT(A), the ld. CIT(A) has adjudicated the issue on the premise that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o adopted by the Stamp Valuation Authority. Therefore, reference to the DVO cannot be made as per sub-section (2) of section 50C of the Act. 6. Having heard the rival submissions and from a careful perusal of the orders of the lower authorities and the documents placed on record, we find that though the assessee has taken a stand before the Assessing Officer that he has disputed the valuation so adopted by the Stamp Valuation Authority, but he could not file any evidence in this regard. Before the ld. CIT(A), the assessee has filed an affidavit deposing therein that he has made a statement before the Assessing Officer that he has disputed the valuation so adopted by the Stamp Valuation Authority by filing objections on the basis of verbal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation. The A.O has not made any enquiry from the Court of Stamp Valuation Authority and without confirming the same from the Court the A.O has held that reference request for reference to Valuation Cell to determine the fair market value of the property in question cannot be entertained. 4. That it is a admitted fact that the deponent has made request to make a reference to Valuation Cell in order to determine the fair market value of the property, but without accepting the deponent's request, the A.Q has adopted consideration determined by the D.M for Stamp Duty purpose. 5. That the deponent vide written submission has brought on record that if the A.O has not made reference for deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty") 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 be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provisions of sub-section (1), where- (a) the assessee claims before any Assessing Officer that the value adopted 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 sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities. If clause (b) of sub-section (2) of section 50C of the Act is not available on the statute, there may be possibility of different opinions by different authorities with regard to the valuation of the property. Then, there would be dispute as to which authority is correct in assessing the correct valuation of the property. In order to avoid this situation, clause (b) was provided in sub-section (2) of section 50C of the Act. But in the instant case, the Assessing Officer and the ld. CIT(A) have placed heavy reliance upon the fact that the assessee has objected to the valuation so adopted by the Stamp Valuation Authority by filing an objection, but the assessee has clarified the facts before the ld. CIT(A) by filing an affidavit t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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