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TMI Blog2016 (9) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... h reference made by him. In the facts of the present case, the Valuation Officer has estimated the value of the capital asset at a lower amount than the value adopted or assessed by the stamp valuation authority. In terms of sub-section (2) of section 50C of the Act, it is such valuation which is required to be taken into consideration for the purposes of assessment. In the light of the above discussion, while not agreeing fully with the reasoning adopted by the Commissioner (Appeals), in the facts and circumstances of this case, this court is in agreement with the final conclusion arrived at by the Commissioner (Appeals) as well as by the Tribunal. - Tax Appeal No. 413 of 2016 - - - Dated:- 2-5-2016 - Harsha Devani And G. R. Udhwani, JJ. Mr Sudhir M Mehta, Sr. Standing Counsel for the Appellant ORDER ( Per : Honourable Ms. Justice Harsha Devani ) 1. By this appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ), the appellant - revenue has challenged the order dated 18th November, 2015 passed by the Income Tax Appellate Tribunal, Ahmedabad B Bench (hereinafter referred to as the Tribunal ) in ITA No.1164/Ahd/2012 by pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the land at ₹ 24,15,000/-. However, the same was received by the Income Tax Officer before the order was received by the assessee, but after the date of the assessment order. The Commissioner (Appeals) was of the view that the Assessing Officer was not justified in adding the differential value based on the value of stamp duty valuation when the matter had been referred by him to the DVO for valuation. According to the Commissioner (Appeals), section 50C of the Act is very clear that the value for the purpose of that section shall be the value as adopted by the Stamp Valuation Authority or the Valuation Officer whichever is lower. In the present case, the valuation of the DVO is ₹ 24,15,000/-. According to the provisions of the Act, the Assessing Officer cannot disregard the value determined by the DVO under section 50C(2) of the Act read with section 16A of the Wealth Tax Act and proceed to compute capital gain in accordance with the value determined by the Stamp Valuation Authority. According to the Commissioner (Appeals), if the value determined by the DVO is lower than the value adopted, assessed or assessable by the Stamp Valuation Authority, the value so estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. As can be seen from the findings recorded by the Commissioner (Appeals), pursuant to the reference made by the Assessing Officer, the Departmental Valuation Officer had valued the lands at ₹ 24,15,000/-. However, such report had been received by the office of the Assessing Officer before the assessment order was received by the assessee but after the date of the assessment order. Before the Commissioner (Appeals), on behalf of the assessee, it was pointed out that pursuant to the request made by the assessee, the Assessing Officer had, by a letter dated 13th December, 2011, referred the case to the Assistant Valuation Officer and had also noted that the appeal filed by the assessee before the revisional authority was merely and only restricted for the purpose of stamp duty. It was contended by the assessee that despite the reference having been made to the Departmental Valuation Officer for valuation, the Assessing Officer without waiting for the report or either ignoring the report of the Departmental Valuation Officer had passed the assessment order and determined the sale price on the basis of the valuation made by the Stamp Valuation Authority. Thus, the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 or no reference has been made before any other authority, court or the High Court; the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of Section 16-A, clause (i) of sub-section (1) and sub-sections (6) and (7) of Section 23-A, sub-section (5) of Section 24, Section 34-AA, Section 35 and Section 37 of the Wealth Tax Act, 1957, shall, with necessary modifications, 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 16-A of that Act. Explanation.-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. (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alth Tax Act provides that on receipt of an order under sub-section (3) or sub-section (5) from the Valuation Officer, the Assessing Officer shall, so far as valuation of the asset in question is concerned, proceed to complete the assessment in conformity with the estimate of the Valuation Officer. Accordingly, once a reference is made under section 50C of the Act to the Valuation Officer for valuation of the capital asset, the Assessing Officer is obliged to complete the assessment in conformity with the estimate made by the Valuation Officer pursuant to such reference made by him. In the facts of the present case, the Valuation Officer has estimated the value of the capital asset at a lower amount than the value adopted or assessed by the stamp valuation authority. In terms of sub-section (2) of section 50C of the Act, it is such valuation which is required to be taken into consideration for the purposes of assessment. In the light of the above discussion, while not agreeing fully with the reasoning adopted by the Commissioner (Appeals), in the facts and circumstances of this case, this court is in agreement with the final conclusion arrived at by the Commissioner (Appeals) as we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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