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TMI Blog2017 (6) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 81 - ALLAHABAD High Court) has been pleased to hold that it is well settled that if under the provisions of the Act an authority is required to exercise powers or to do an act in a particular manner, then that power has to be exercised and the act has to be performed in that manner alone and not in any other manner. - Decided against revenue. - ITA No.4166/Del/2013 - - - Dated:- 7-6-2017 - Shri I. C. Sudhir, Judicial Member And Shri L. P. Sahu, Accountant Member Assessee by: Shri Piyush Kaushik, Adv Department by: Shri S.K. Jain, Sr. D.R. ORDER Per: I.C. Sudhir, J.M. The Revenue has questioned first appellate order on the following grounds :- 1. The Ld. Commissioner of Income Tax (Appeal) has erred in law in allowing the assessee s appeal and annulling the order passed by the Assessing Officer. 2. The order of Ld. Commissioner of Income Tax (Appeal) is erroneous and bad in law and deserves to be cancelled and the order passed by the Assessing Officer deserves to be sustained on the facts of the case. 3. The spirit of section 50C regarding full value of consideration has not been appreciated by the Ld. Commissioner of Income Tax (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer has followed the procedure laid down under section 50C of the Act. He submitted that if any irregularity of procedure is there in the assessment order, the same may be set aside to the file of the Assessing Officer to pass fresh assessment order on the issue after following the prescribed procedure under the provisions of the Income Tax Act, 1961. 3.2 The Id. AR, on the other hand, tried to justify the first appellate order with submission that when the assessee had explained before the Assessing Officer that the value adopted by the stamp valuation authority under sub section (1) exceeds the fair market value of the property on the date of transfer, the Assessing Officer, as requested by the assessee, should have referred the valuation of the capital asset to a valuation officer as per sub section (2) to section 50C of the Act. He submitted that the impugned land being the subject matter of sale was subject to several distressing circumstances as a result of which the market value of said land can certainly not be compared with that of any normal land. The said land as submitted before the authorities below was inter alia, subject to the following distressing circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the purposes of stamp valuation before the Assessing Officer, which does not at all reflect the fair market value of the impugned land in view of several distressing circumstances mentioned above. In spite of the same the Assessing Officer mechanically computed sale consideration on the basis of stamp valuation without making a necessary reference to the valuation officer as required under the provisions of sub section (2) to section 50C on the facts and circumstances of the case. The Id. CIT (Appeals) was thus justified in holding the assessment on the issue as null and void. He contended that when an authority under the provisions of law is required to exercise powers or to do an act in a particular manner, then that power has to be exercised and the act has to be performed in that manner alone and not in any other manner. In support he has placed reliance on the following decisions :- (i) Dr. Shashi Kant Garg Vs. CIT, 285 ITR 158 (All.) (ii) CIT Vs. Anjum M. H. Ghaswala Others, 252 ITR 1 (SC); (iii) DCIT Vs. Mahi Valley Hotels and Resorts, 287 ITR 360 (Guj.) 3.5 The Idi AR pointed out that the value so adopted by the stamp valuation authority had not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re- (a) the assessee claims before any Assessing Officer that the value adopted or assessed or assessable] 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 59[ or assessed or assessable] 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 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 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 16A of that Act. 6 0 Explanation 1.- For the purposes of this section, Valuation Officer shall have the same meaning as ..... 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