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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 ..... om DVO on merits. The issue regarding long term capital gains is allowed for statistical purposes. Sale consideration of the property was invested in a specified bond to claim exemption u/s 54EC therefore, there is no capital gains - assessee has sold the property and received the sale consideration of ₹ 19,01,000/- and the entire sale consideration was invested in NABARD bonds u/s 54EC of the Act - Held that:- 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 ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the CIT(A). Therefore, the assessee is in appeal before the Tribunal. During the appeal, the ld. AR argued the assessee is an NRI staying in abroad and visits India from time to time. Having observed in his visit to Chennai that his property was encroached by some residents living earlier and constructing dwelling units, the assessee has to sell the property in distress. Since the assessee being an absentee landlord, he has given a power of attorney to his father to deal with the sale of property. The value of ₹ 19,01,000/- was received by his father and he did not notice the excess stamp duty levied by the SRO. Only in 2007, the assessee s father has noticed that the excess stamp duty was levied by the SRO and filed an appeal u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial placed before us. The assessee has sold the property for a consideration of ₹ 19,01,000/- @ ₹ 190/- per sq ft. However, the guideline value was ₹ 27,90,000/- which attracts sec. 50C of the Act. The assessee is a non-resident Indian who stays in UAE. He frequently visits Chennai since his parents are staying in Chennai. Having noticed that the property being encroached by unauthorized occupants, the property was sold through a power of attorney holder who happened to be his father. The net consideration received was ₹ 19,01,000/- and the assessee has invested the entire amount of ₹ 19,01,000/- in NABARD bonds which is exempted u/s 54EC of the Act. The property was sold on 30.4.2004 and paid the excess stam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the DVO @ ₹ 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. As per section 50C of Income tax act if the asseesse dispute the guide line value the case needs to be referred to the departmental valuation cell. For ready reference we reproduce hereunder Section 50C of IT act which reads asunder: Special provision for full value of consideration in certain cases. 91 50C. (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 92[or assessable] by any authority of a State Government (hereafter i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poses 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 section, the expression assessable means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty.] (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed 94[or assessable] by the stamp valuation authority referred to in sub-section (1), the value so adopted o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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