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TMI Blog2015 (5) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) TMI 1625 - ITAT DELHI), the Assessing Officer ought to have referred the matter to the DVO for valuation of the impugned property. Therefore, this issue is restored to Assessing Officer for the purpose of referring the impugned property for valuation u/s 50C(2) of the Act and thereafter proceed to determine the capital gains on the property in question - Decided in favour of assesse for statistical purposes. - ITA No.2278/Del./2013 - - - Dated:- 20-4-2015 - Shri George George K And Shri T.S. Kapoor JJ. For the Appellant : Shri Salil Aggarwal, Advocate and Shri Shailesh Gupta, CA For the Respondent : Shri K.K. Jaiswal, Senior DR ORDER Per George George K., JM : This appeal, at the instance of the assessee, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rea were changed from 01.04.2007 onwards from ₹ 10,00,000/- to ₹ 22,00,000/- per acre. The Assessing Officer completed the assessment rejecting the objections raised by the assessee and adopted the value of land at ₹ 57,58,750/-. Thus, the short term capital gains was computed at ₹ 35,53,663/-, 4. Aggrieved, the assessee preferred an appeal before the first appellate authority. Before first appellate authority, the assessee filed an application under Rule 46A of the Income-tax Rules, 1962 requesting for admission of additional evidence for the reason that the assessee could not produce the same in the course of assessment proceedings, since Assessing Officer completed the assessment without granting assessee prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al before us. 6. Ld. Counsel for the assessee reiterated the submissions made before the income-tax authorities. It was further submitted that u/s 50C(2) of the Act, if the assessee claims that the fair market value or the sale deed price is below the circle rate, then it is mandatory for the Assessing Officer to refer the impugned property for valuation to the DVO. For the above proposition, the ld. AR relied on the order of the Tribunal in the case of Sarwan Kumar vs. ITO, Ward 26 (3), New Delhi reported in 150 ITD 289. It was further submitted that the assessee has furnished her objections before the assessing authority and Assessing Officer had completed the assessment in haste without giving an opportunity to the assessee to put for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Pune bench in the matter of K.K. Nag Ltd. vs. ACIT (supra) wherein the AO applying provisions of section 50C, adopted stamp duty value of land and building as total sale consideration for the purpose of computing the capital gain. The assessee raised the objection that since it had claimed that the value assessed by the stamp valuation authority exceeded the fair market value, the AO ought to have referred the matter to the valuation officer to ascertain the valuation. For a ready reference the matter travel to the Tribunal and the Tribunal has held as under :- Section 50C prescribes for adoption of full value of consideration in certain cases. It is provided that where the consideration received or accrued as a result of the transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable. The discretion vested in the Assessing Officer in such a situation is required to be used in a judicious manner. Section 50C is a deeming provision and ostensibly involve creation of an additional tax liability on the assessee and, therefore, notwithstanding the presence of the expression may in section 50C (2)(a), the Assessing Officer in this case ought to have referred the matter to the Valuation Officer for ascertaining the value of the capital asset in question. Therefore, the order of the Commissioner (Appeals) is to be set aside and the Assessing Officer is to be directed to adopt the course mentioned in section 50C(2)(a) and thereafter, proceed to determine capital gain on sale of land and building. 7. The Delhi Bench o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of K.K. Nag Ltd. vs. ACIT (supra) after detailed discussion of the provisions laid down u/s 50C of the Act has held that the discretion granted in such a situation is required to use in a judicious manner. Section 50C is a deeming provision and ostensibly involve creation of an additional tax liability on the assessee and, therefore, notwithstanding the presence of the expression may in section 50C(2)(a), the AO in this case ought to have referred the matter to the valuation officer for ascertaining the value of the capital asset in question. The order of the Commissioner (Appeals) was thus held to be set aside and the AO was directed to adopt the course mentioned in section 50C(2)(a) and thereafter proceed to de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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