9911796707
TMI Blog2003 (3) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... e record are that during the year under appeal, assessed sold a plot no. 171 pocket 4 & 5 sector 23, Rohini for ₹ 1,82,500. This property was owned by assesseds along with Smt. Sangita Mahajan. Since the individual assessed had 1/4th share in this property it declared capital gain of ₹ 2,500. The assessing officer after making market enquiries referred the case to the valuation officer under section 55A of the Act, and the valuation officer has estimated the fair market value at ₹ 23,29,200 and the individual assessed's 1/4th share came to ₹ 5,82,300 instead of ₹ 1,82,500. The assessing officer asked the assessed to submit objection to the valuation report and the assessed filed approved valuer's report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now, the assessed preferred an appeal before the Tribunal and reiterated his contention. The learned counsel for the assessed Mr. A.K. Srivastava has emphatically argued that before rejecting the sale consideration of the capital asset declared by the assessed, the revenue has to bring some concrete material on record that the assessed had received more than what he has declared. A reference under section 55A is only made to determine a fair markets value is certainly not a full consideration received by the assessed. A full consideration means a full amount which has been received by the assessed on sale of property and not that sum of amount which might have been received by the assessed according to the market rate. There may be differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enever the revenue authorities doubt sale consideration declared by the assessed, the assessing officer is competent enough to make a reference under section 55A to DVO in order to determine a fair market value of the property. No doubt a fair market value is in strict sense is not a full consideration received by the assessed. But whenever the assessing officer has brought some material on record that the assessed has under stated the sale consideration of immovable property, he can certainly made reference to the DVO to ascertain market value of the property and once the assessing officer brings some evidence on record along with the valuation report, to establish that what the assessed has declared, is not correct and the sale considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from making enquiries to ascertain the full consideration received by the assessed in order to determine the capital gain. The learned departmental Representative has also placed reliance on some of the judgments which are as under; in support of his contention that the assessing officer was justified in making a reference in the given circumstances (i) Mliam De Naronhe & Ors. v. Assm CIT & Ors.(supra) (h) Daulatram & Ors. v. Income Tax Officer & Anr. (1990) 90 CTR (AP) 152: (1990) 181 ITR 119 (AP) (hi) C. T Laxmandas v. Assistant Commissioner & Anr. (1994) 208 ITR 859 (Mad) 9. On consideration of rival submission and from a careful perusal of record, we find that the assessed has declared the sale consideration on the basis of document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 1987, with effect from, 1-4-1988, that sub-section (2) of section 52 of the Income Tax Act can be invoked only where the consideration for transfer of capital asset has been under stated by the assessed or in other words, the full value of consideration in respect of transfer is shown as lesser figure than the actually received by the assessed and burden of proving such under statement or concealment is on the revenue. The sub-section has no application in the case of honest and bona fide transaction where the consideration received by the assessed, has been correctly declared or disclosed by him. Their Lordships have further held that what in fact never accrued or was never received, cannot be computed as capital gain under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision at present under which inference can be drawn that assessed has understated the full value of the consideration under certain circumstances. 12. With regard to cases of section 56A, we are of the view that the assessing officer is competent to make a reference to determine fair market value of the asset and whenever the revenue has brought the complete material on record to prove that the assessed has received more consideration, than what he has declared, the assessing officer may recourse the provision of section 56A for determining the fair market value which can be used as a full consideration. But in the case in hand, the assessing officer has not brought on record except the DVO's report that the assessed has received mor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
