9911796707
TMI Blog2014 (6) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A) erred in not appreciating the claim of the appellant that in the course of assessment proceedings, he had claimed before the ld. A.O. that the value of property adopted by the stamp valuation authority far exceeding the fair market value of the property and therefore the same was required to be valued as provided by section 50C(2) of the I.T.Act, 1961. 1C. The ld. CIT(A) erred in not appreciating the reasons put forth by the appellant for the fair market value of the property to be lower than the value as per stamp valuation authority, particularly on account f the said property being possession of tenants. 1D The ld. CIT(A) erred in holding that the AR of the appellant had agreed to the correct valuation of the property as o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the consideration received as a result of such transfer. Opportunity of being heard was given to the assessee. The assessee responded to the notice of the AO and filed a valuation opinion of a government approved valuer claiming that the value of the transferred property is much less than the stamp duty value adopted by the sub-registrar. The submissions/claim of the assessee was rejected by the AO, who went on to compute the long term capital gain by adopting the stamp duty of the sale consideration and computed the share of the assessee at Rs.12,53,161/-. The assessee carried the matter before the CIT(A). The assessee reiterated its claim that the fair market value of the property was much less than the value adopted by the stamp duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO may refer the valuation to the valuation officer. In the instant case, we find that the AO has not followed this procedure. When this issue was raised before the CIT(A), the CIT(A) also did not direct the AO to refer the matter to the valuation officer. 5. In our understanding of law, whenever objection is taken or claim is made before the AO that the value adopted by the stamp valuation authority under sub section (1) of section 50C exceeds fair market value of the property on the date of transfer, the AO has to apply his mind on the validity of the objection of the assessee. If the assessee has filed a report of the approved valuer, the AO may either accept the valuation of the property on the basis of this report or refer the que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fair market value as on 01.04.1981 as the cost of acquisition for the purpose of computation of Long term capital gains. Ground no.2 is set aside and according allowed for statistical purposes. 7. Ground no.3 relates to the denial of the claim of deduction u/s. 80C of the Act amounting to Rs.45,000 paid as tuition fees. We find that at para 3 of the assessment order the AO has referred to the claim of deduction u/s. 80C at Rs.83,519/- relating to the payment of housing loan. However, in the assessment order while computing the assessed income, no deduction u/s. 80C in respect of tuition fees has been allowed by the AO. The AO is therefore directed to allow the claim of the assessee for deduction u/s. 80C of the Act in relation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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