9911796707
TMI Blog2019 (6) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... l gain by applying provision of section 50C(1) of the Income Tax Act, 1961 (for short "the Act"). 3. Brief facts are, for the impugned assessment year the assessee filed its return of income on 19th September 2011, declaring total income of Rs. 12,94,930. In the course of assessment proceeding while examining the return of income filed by the assessee, the Assessing Officer noticed that in the previous year relevant to the assessment year under dispute, the assessee has sold a flat in Galaxy Heaven, JVPD Scheme, Vile Parle, Mumbai, for a declared sale consideration of Rs. 1.75 crore. After reducing the cost of acquisition of the property as on 20th February 2008 amounting to Rs. 1,54,72,963, the assessee has offered short term capital gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue determined by the stamp valuation authority as deemed sale consideration. He submitted, on the face of such objection by the assessee, the proper course left to the Assessing Officer was to refer the valuation of the property to the Department Valuation Officer in terms of section 50C(2) of the Act and thereafter compute the capital gain following the provision of sub-section (3) of section 50C of the Act. He submitted, as per section 50C(2) of the Act, once the assessee objects to the adoption of the value determined by the stamp valuation authority, the Assessing Officer has to make a reference to the Departmental Valuation Officer (DVO) to determine the value of the property. He submitted, the Assessing Officer having not done so, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used in sub-section (2) of section 50C of the Act with regard to reference to the DVO is "may". Thus, she submitted, discretion has been vested with the Assessing Officer to make a reference to the DVO on a case to case basis. Further, she submitted, the provisions of sub-section (2) of section 50C of the Act is not mandatory is clear from the fact that under sub-section (3) of section 50C of the Act, the Assessing Officer has been empowered to adopt the value determined by the DVO only in a case where it exceeds the value determined by the stamp valuation authority. Thus, she submitted, the Assessing Officer has not committed any error by not making a reference to the DVO for determining the value of the property sold. Further, she submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h regard to making a reference to the DVO is concerned, on a schematic interpretation of section 50C of the Act as a whole, it appears that, though, under section 50C(1) of the Act the value determined by the stamp valuation authority is to be treated as deemed sale consideration and has to be substituted for the declared sale consideration, however, in a case where the assessee objects to adoption of stamp duty valuation, as per sub-section (2) of section 50C of the Act the Assessing Officer is required to make a reference to the DVO for determining the value of the property. Now, the issue before us is, whether as per section 50C(2) of the Act, it is mandatory on the part of the Assessing Officer to make a reference to the DVO to determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of stamp duty valuation as deemed sale consideration during the assessment proceedings, the Assessing Officer is duty bound to make a reference to the DVO to determine the value of the property as per section 50C(2) of the Act. The other decisions cited by the learned Authorised Representative also express similar view. In fact, the Hon'ble Calcutta High Court in Sunil Kumar Agarwal v/s CIT, [2015] 372 ITR 83 (Cal.), have gone a step further to observe that valuation by the DVO is contemplated under section 50C of the Act to avoid miscarriage of justice. It was held that when the legislature has taken care to provide adequate machinery to give a fair treatment to the tax payer, there is no reason why the machinery provided by the legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
