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TMI Blog2021 (12) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... etermine the fair market value which shall be treated as sale consideration in pursuance to the provisions of subsection 2 of section 50C - in the present case the reference to the DVO has been made who determined the value at ₹70,54,000.00 in which the share of the assessee stands at ₹35,27,000.00 only - Accordingly, the learned CIT (A) has directed to the AO to adopt the sale consideration at ₹35,27,000.00 only for the purpose of computing the short-term capital gain. The provisions of section 50C of the Act was introduced in the Income tax Act, 1961 by the Finance Act, 2002 with effect from 1-4-2003 for substituting valuation done for Stamp Valuation purposes as full value of consideration in place of apparent consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entirety. 3. The facts in brief are that the assessee in the present case is an individual and drawing income as share of profit from the partnership firm and other sources. The assessee in the year under consideration has sold the property jointly along with his wife for a consideration of ₹59 lakhs in aggregate. The share of the assessee in the impugned property was 50%, therefore the assessee has shown sale consideration at ₹ 29,50,000.00 only. The impugned property was purchased by the assessee at the price of ₹29,50,000 only. Thus the assessee has not shown any capital gain income against the sale of such property. It is for the reason that the assessee has sold the property at the same price at which he acquired. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000.00 only. Thus the share of the assessee in such property as per the DVO report stood at ₹35,27,000.00 only. However, the assessee before the learned CIT (A) reiterated the contention that the excess value of the sale consideration represents the gift to the wife of his brother being the relative. Therefore, there cannot be any addition to the total income of the assessee. 5. However, the learned CIT (A) disregarded the contention of the assessee and directed the AO to adopt the value determined by the DVO as sale consideration for computing the capital gain by observing as under: 3.7. The appellant objected the valuation adopted by the AO and requested that the same may be referred to the DVO. Accordingly the matter was rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehemently supported the order of the authorities below. 9. We have heard the rival contentions of both the parties and perused the materials available on record. The provisions of section 50C of the Act requires to adopt the value determined for the purpose of Stamp duty as the sale consideration on the transfer of capital asset being land and building if the consideration on the transfer of the capital asset is less than the value adopted or assessed or assessable for the purpose of stamp duty. In other words, the stamp value is deemed as the sale consideration under the provisions of section 50C of the Act. However, if the assessee disputes such stamp value than the matter can be referred to the DVO to determine the fair market value w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration; (3) It is also provided that where the assessee claims that the value adopted or assessed for stamp duty purposes is more than the fair market value of the property as on the date of transfer and he has not disputed this value before the appellate authorities or the Court under Stamp Duty Act then the Assessing Officer may refer the valuation of such property under transfer to the Valuation Officer in accordance with section 55A of the Income-tax Act, 1961. If the fair market value so determined by the Valuation Officer is less than the value adopted for stamp duty purposes the Assessing Officer may take such fair market value to be the full value of consideration. On the other hand, if the fair market value determined by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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