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TMI Blog2016 (10) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. During the assessment proceedings, the Assessing Officer found that the assessee has sold the property for a consideration of Rs. 19.01 lakhs and invested in NABARD bonds for claiming exemption of capital gains. However, the Assessing Officer found that the Registrar of Stamp Duty has fixed the guideline value at Rs. 27,90,200/- and the assessee also paid the excess stamp duty as per the guideline value. Therefore, the Assessing Officer invoked sec. 50C of the Act and taxed the difference amount of Rs. 6,33,533/-. 4. Aggrieved, the assessee went on appeal before the CIT(A) but could not succeed before the CIT(A). Therefore, the assessee is in appeal before the Tribunal. During the appeal, the ld. AR argued the assessee is an NRI stayin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer in June 2007 and issue of notice u/s 143(2). Therefore, the appeal of the assessee before the SRO is nothing but an afterthought. Further the ld. DR argued that as per sec. 50C of the Act, the Assessing Officer may refer the matter to the Valuation Officer which means it is a discretion of the Assessing Officer and to refer the property to the Valuation Officer is not mandatory. Therefore, the ld. DR was of the view that the Assessing Officer has rightly invoked sec. 50C of the Act and taxed the long term capital gains. 6. We heard the rival submissions and perused the material placed before us. The assessee has sold the property for a consideration of Rs. 19,01,000/- @ Rs. 190/- per sq ft. However, the guideline value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equivalent to the property of his wife. The ld. AR has filed a map in the paper book showing that the property of the assessee's wife is contiguous property which requires to be valued at the same rate. If the fair market value of the property is taken at Rs. 190/- per sq ft as valued by the DVO, the taxable capital gain would be NIL. Assessee having sold the property through power of attorney holder, may not aware of the actual happenings or the guideline value of sub-Registrar. Since the property sold by the assessee's wife is contiguous property which was valued by the DVO @ Rs. 190/- per sq ft we are of the opinion that the assessee's case also needs to be referred to the Departmental valuation cell for valuing the fair market value. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital 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 modi-fications, 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. 93[Explanation 1].-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 (27 of 1957). 94[Explanation 2.-For the purposes of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale consideration of Rs. 19,01,000/- and the entire sale consideration was invested in NABARD bonds u/s 54EC of the Act. Therefore, the assessee contended that there is no case for assessment of capital gains. 8. We heard the rival submissions and perused the material placed before us. We have carefully gone through the provisions of sec. 54EC of the Act. As per sec. 54EC of the Act, if the cost of long term specified asset is not less than the capital gain arising from the transfer of the original asset, the whole of such capital gain shall not be charged to the capital gains tax. In this case, though te assessee has invested the entire sale consideration, capital gains has to be worked out by taking the guideline value u/s 50C of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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