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TMI Blog2021 (9) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... rtmental valuation officer in terms of Section 50C(2) - In this case, although the assessee has requested for reference to departmental valuation officer u/s. 50C(2) of the Act, before the AO as well as the CIT(A), both authorities have failed to comply with the requirement of law - We are of the considered view that the AO as well as the CIT(A) have erred in computing LTCG by taking value fixed by the State Government authority for payment of stamp duty, even though the assessee has filed his objection for taking such valuation, contrary to provisions of Section 50C(2). Matter remanded back to AO with directions. - ITA No. 2636/CHNY/2019 - - - Dated:- 18-8-2021 - V. Durga Rao, Member (J) And G. Manjunatha, Member (A) For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied lower resale value based on valuer report suo moto filed during assessment proceedings. 6. The Learned Commissioner of Income Tax (Appeals) is not justified in relying upon the unilateral and one sided version of the S.R.O. on guideline value obtained by the Assessing Officer behind the back of the assessee which was not a subject matter of endorsement at the time of registration of the impugned property. 7. The Learned Commissioner of Income Tax (Appeals) is not justified in delayed disposal of appeal almost after 10 months of personal hearing on 30/10/2018 and ignoring endorsement on reference to Valuation Cell by his predecessor CIT(A) at the time of hearing of the appeal on 12/4/2018. 8. In any event the order of CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee vide his letter dated 15.12.2017 submitted that although there is difference in value shown in registered deed and value assessed by the stamp duty authorities, he had obtained a valuation report, as per which value of the property cannot exceed more than ₹ 2 crores. The assessee further contended that although the property is situated at Victoria Crescent Road, Egmore, Chennai, but it is not in the main road connecting Egmore but, is only at the lane of Victoria Crescent Road and that the plot has access of only 3 feet path. Therefore, the value determined by the stamp duty authorities may not be correct market value of the property. He further submitted that the Government of Tamil Nadu itself had reduced the guideline ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th provision of section 50C(1) of the Act, then it is the duty of the AO to refer the matter to the valuation officer but he could not do so. Therefore, the matter may be referred to the departmental valuation officer in terms of section 50C(2) of the Act, so that the correct valuation may be adopted. The CIT(A) after considering relevant submissions of the assessee and also taken note of facts brought out by the AO observed that although the assessee has disputed value determined by the AO u/s. 50C(1) of the Act, but he did not raise any objection nor requested for reference to departmental valuation officer for determining the correct market value of the property. The assessee rather requesting for reference to DVO, has justified the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andatory law as prescribed u/s. 50C(2) of the Act and hence, the matter may be set aside to the file of the AO to reconsider the issue. 6. The ld. DR on the other hand strongly supporting order of the ld. CIT(A) submitted that the ld. CIT(A) has upheld addition made by the AO on the basis of factual finding recorded in the assessment order having regard to value of the property as per guideline value fixed by the stamp duty authorities, as per which, market value of the property was fixed at ₹ 12,500/- per sq.ft. The assessee has not offered any explanation to justify sale consideration shown in the registered sale deed. Therefore, there is no error in the findings recorded by the CIT(A) to confirm addition made by the AO and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purpose of Section 48, be deemed to be the full value of consideration received as a result of said transfer. However, sub-section (2) of Section 50C of the Act, makes it clear that in case the assessee claims before any Assessing Officer that the value adopted or assessed by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer and further the value so adopted or assessed has not been disputed in any appeal or revision or any reference has been made before any other authority, court or the High court, then the AO may refer the valuation of the capital asset to the valuation officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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