Section 50C valuation safeguard requires DVO reference despite prior stamp authority valuation when statutory conditions are satisfied.

Where an assessee disputes the stamp valuation adopted for transfer of property, section 50C(2) preserves a separate statutory safeguard by enabling a reference to the Valuation Officer when the prescribed conditions are met. A prior valuation by the stamp authority under the Stamp Act does not, by itself, extinguish that right or justify refusal of reference merely because the property value has already been determined under section 47A of the Stamp Act. The provision operates in addition to remedies under the Stamp Act and protects the assessee against adoption of an unchallenged stamp valuation without independent valuation review.

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Issues: Whether, when the assessee disputes the stamp valuation adopted for transfer of property, the Assessing Officer can refuse a reference to the Departmental Valuation Officer under section 50C(2) of the Income-tax Act, 1961 merely because the stamp authority had already determined the value under the Stamp Act.

Analysis: Section 50C(2) provides a safeguard to the assessee where the value adopted by the stamp valuation authority is disputed and no appeal or revision has been taken against that value. The provision empowers the Assessing Officer to refer the capital asset to a Valuation Officer, and the safeguard is in addition to the remedies available under the Stamp Act. A valuation made by the Special Deputy Collector (Stamps) on reference under section 47A of the Indian Stamp Act does not, by itself, extinguish the assessee's right to seek a reference under section 50C(2) when the statutory conditions are otherwise met. Refusal to make such reference denies the assessee a valuable statutory protection.

Conclusion: The Assessing Officer was not justified in refusing reference to the Departmental Valuation Officer; the matter had to be referred under section 50C(2).

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