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TMI Blog2010 (3) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... tamp valuation authority, (being the local registration authority here), had fixed total market value of 51 cents at ₹ 1,00,06,200/-. Assessee's argument was that guideline value as available from website of Tamil Nadu Registration Department for agricultural land as on 1.4.2003 was only ₹ 21,52,000/- per acre and therefore, the sum of ₹ 34 Lakhs shown for 51 cents was more than such guideline value. Assessee vide its letter dated 12.12.2005 addressed to the Assessing Officer placed at paper book pages 3 and 4 brought to the attention of the Assessing Officer that there was another sale in Survey No.434 which was nearer to the Avinashi Main Road, wherein 2.04 acres of agricultural land was sold for a price of 40 lakhs. According to assessee, survey number of the impugned property being 431 was far away from the main road and hence could never have fetched a price higher than that. Copy of survey map was also filed by assessee. In addition to the above contention, assessee also requested the Assessing Officer to refer the matter to the valuation authority. Assessing Officer, it seems, pursuant to such a request made a reference to the valuation cell of the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration as per the value considered by stamp valuation authority at the time of registration of relevant documents. 5. Now before us, the ld. A.R. submits that the assessee had submitted all evidences before the Assessing Officer as well as ld. CIT(A) but these were not considered in the proper perspective. According to him, if the valuation cell of the department declined to value a property referred to it by the Assessing Officer, then no liability could be fastened on assessee on account of reluctance of such valuation cell to carry out its duties as assigned by the Act. In any case, according to him, assessee had produced sufficient evidence in the nature of valuer's report, guideline valuation of the State and comparable sale instance which was more nearer to the main road, but these were all not considered. According to him, without considering such material, the Assessing Officer as well as ld. CIT(A) fell in grave error in adopting the value considered by the registration authorities for the purposes of stamp duty fixation. 6. Per contra, the ld. D.R. first objected to the assessee relying on the Paper Book pages 13 and 14 which, as per the assessee was the guidel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven by the registered valuer. At this juncture it is necessary to see what are the powers and obligations of different officers as per section 50C of the Act. Sub-section (1), (2) and (3), therefore, are reproduced hereunder: (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 by any authority of a State Government [hereinafter 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 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 nay Assessing Officer that the value adopted or assessed 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 by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is to be taken into account in such assessment the [Assessing Officer] may refer the valuation of any asset to a Valuation Officer: (a) in a case where the value of the asset are returned is in accordance with the estimate made by a registered valuer, if the [Assessing Officer] is of the opinion that the value so returned is less than its fair market value; (b) In any other case, if the [Assessing Officer] is of the opinion: (i) that the fair market value of the asset exceeds the value of the asset as returned by more than such percentage of the value of the asset as returned or by more than such amount as may be prescribed in this behalf; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do. (2) For the purpose of estimating the value of any asset in pursuance of a reference under sub-section (1) the valuation officer may serve on the assessee a notice requiring him to produce or cause to be produced on a date specified in the notice such accounts, records or other documents as the Valuation Officer may require; (3) Where the a Valuation Officer is of opinion that the value of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act made by the Assessing Officer and provisions of W.T. Act as applicable to such reference, there is no option with a valuation officer hereby he can decline to make a valuation, but on the other hand he is duty bound to make the valuation and give a report. Thus, there is a failure of carrying out a statutory duty cast on an officer of the department. More important is that sub-section (6) of section 16A of the W.T. Act clearly states that the Assessing Officer shall so far as valuation of the asset in question was considered, proceed to complete assessment in conformity with the estimation of the valuation officer. Thus, once a reference is made by him to valuation officer the Assessing Officer is bound to proceed with the assessment considering estimate given by valuation officer. Such mandatory provision has only one exemption which is given at sub-section (3) to section 50C of the Act i.e., where value so fixed by the valuation officer exceeded value assessed by Stamp Valuation Authority. Thus, in our opinion, the Assessing Officer having made the reference to the valuation officer of the department could not take refuge under sub-section (1) of section 50C of the Act, for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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