2023 (12) TMI 704

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..... h is also the circle rate. The assessee in its appeal raised the following grounds: "The action of the AO in making an addition of Rs. 49,96,140/- as Long Term Capital Gain being the difference of Fair Market Value of the property estimated by the Valuation Officer at Rs. 1,20,26,140/- and the actual sale consideration and circle rate of Rs. 70,30,000/- shown by the appellant, is unjust, illegal, arbitrary and against the facts and circumstances of the case." 2. The Ld. Counsel for the assessee, at the outset, submits that reference to Valuation Officer u/s 50C is bad in law for the reason that the sale consideration of the property is not less than the circle rate. The Ld. Counsel placing reliance on the decision of the Hon'ble Gujarat .....

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..... sfer, the value so adopted by the Stamp Valuation Authority shall be deemed to be the full value of consideration received as a result of transfer of such capital asset for the purpose of computing capital gains. In the assessee's case, the sale consideration received on transfer of capital asset at Rs. 70,30,000/-. The stamp valuation/circle rate of the said properties was also valued at Rs. 70,30,000/- for the purpose of Stamp Duty by the Stamp Valuation Authorities. 6. The Hon'ble Gujarat High Court in the case of PCIT Vs. Shanubhai M Patel (supra) held that where the assessee sold plot of land since the value declared by the assessee exceeded value adopted by the Stamp Valuation Officer there was no question of referring valuation of p .....

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..... ition precedent for resorting to the provisions of sub-section (1) of section 50C of the Act is that the land or building should have been transferred for a lesser consideration than that adopted or assessed or assessable by the stamp valuation authority. Adverting to the facts of the present case, undisputedly the valuation made by the assessee exceeds the value adopted by the stamp valuation authority. The condition precedent for invoking subsection (1) of section 50C of the Act is, therefore, clearly not satisfied. Consequently, there was no question of referring the valuation of the plots in question to the Valuation Officer. The impugned order passed by the Tribunal being in consonance with the provisions of sub-section (1) of section .....

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