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TMI Blog2024 (5) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... uested to allow the deduction of cost of the land sold also disputed the determination of fair market value of the land sold on the basis of guide line value of stamp duty before LD CIT(A)/NFAC, but he has not bothered to refer the matter to the valuation officer in the light of section 50C(2) of the IT Act, but only directed the AO to allow the cost of the land sold for the purposes of calculation of short term capital gain. It was the We find force in the contention of assessee that to overcome such situation in section 50C, an option is given to the assessee to object determination of fair market value on the basis of guide line value of stamp duty for the purposes of registration of the property in such a case the AO is bound to refer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Rs. 8,00,000 and therefore, the addition made u/s 50C was not justified on facts and in law. 2] The learned CIT(A) failed to appreciate that the claim of the appellant was duly supported by Valuation Report of Govt. Approved Valuer and therefore, the addition u/s 50C confirmed by the CIT(A) without even referring the matter to DVO in spite of specific request made by assessee was against the law laid down by Hon ble Calcutta High Court in Sunil Kumar Agarwal v. CIT [372 ITR 83] and hence, the said addition may be deleted. 3] The appellant craves leave to add/ alter/ amend any of the grounds of appeal. 3. Briefly, the facts of the case are that the appellant is an individual engaged in the business of labour contractor. The Return of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence in the stamp duty valuation 22,25,000/- and the actual sale consideration. The appellant further stated that the AO has erred in not referring the impugned land sold for valuation to DVO as there was substantial difference between actual consideration and value for stamp duty purposes per section 50C (2) and that the AO has erred in not considering cost of land sold while calculating short term capital gain. 6.1 The AO in the assessment order noted that the assessee had sold an immovable property at Rs. 800000/- whose guideline value was Rs. 2225000/- for the stamp duty purposes. The AO issued the notices but no compliance was made so the AO added the entire stamp duty consideration as the income of the assessee. The appellant during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f acquisition and the AO shall be computing the Capital gain after giving the benefit of indexation. The addition is partly deleted. The ground of appeal is partly allowed. 5. Being aggrieved by the decision of the ld. CIT(A)/NFAC, the appellant is in appeal before us. 6. The LD AR submitted before us that the assessee is only 8th class pass is not well conversant with technology therefore could not see the notice u/s 148/142(1), which were sent on email. Consequently the orders were passed ex-parte by the AO resulting in addition of income under the head short term capital gains of Rs. 22,25,000/-. It was further submitted by LD counsel of the assessee that the impugned sold property was located near the river bank beside cremation ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls. The only ground raised before us in this appeal is regarding making the addition on the basis of difference in guide line value of stamp duty for the purposes of registration actual sales consideration, without appreciating the contention of the appellant as well as without referring the matter to the DVO as envisaged in the section 50C of the IT Act. We find that the appellant assessee requested to allow the deduction of cost of the land sold also disputed the determination of fair market value of the land sold on the basis of guide line value of stamp duty before LD CIT(A)/NFAC, but he has not bothered to refer the matter to the valuation officer in the light of section 50C(2) of the IT Act, but only directed the AO to allow the cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding orders passed by the CIT(A) and the assessing officer are all set aside. The matter is remanded to the assessing officer. He shall refer the matter to the departmental valuation officer in accordance with law. After such valuation is made, the assessment shall be made de novo in accordance with law. 9. We therefore respectfully following the above judgement, find force in the contention of the appellant assessee that to overcome such situation in section 50C, an option is given to the assessee to object determination of fair market value on the basis of guide line value of stamp duty for the purposes of registration of the property in such a case the AO is bound to refer the matter to the DVO. In the instant case the AO passed ex-part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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