Appeal allowed for reevaluation of capital gains computation order, emphasizing fairness and legal procedures.

The appeal challenging the order under section 143(3) r.w.s 147 for AY 2012-2013, regarding additions under section 50C for computing capital gains, was allowed for statistical purposes. The Tribunal remitted the matter to the Assessing Officer to refer the valuation to the Departmental Valuation Officer and make a fresh assessment based on the report and after hearing the assessee. The decision emphasized fairness and adherence to legal procedures, with the matter being returned to the Assessing Officer for reevaluation based on the Departmental Valuation Officer's report.

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Issues:
Challenge to correctness of order under section 143(3) r.w.s 147 for AY 2012-2013, Upholding of additions under section 50C in computing capital gains.

Analysis:
1. The appeal challenges the order dated 23rd September, 2016, passed by the Learned CIT(A) concerning the assessment under section 143(3) r.w.s 147 of the Income Tax Act, 1961 for the assessment year 2012-2013. The primary grievance of the appellant is against the additions of &8377; 30,58,775/- under section 50C for adopting the sale consideration to compute capital gains.

2. The core issue revolves around the sale of a plot of land through a public auction for &8377; 18,80,000/-, with the auction occurring on 27.02.2011 and the sale deed executed on 02.07.2011. The Assessing Officer noted a stamp duty valuation of &8377; 49,52,545/- for the plot, but the appellant produced a valuation report valuing the plot at &8377; 18,80,000/-. Despite this, the Assessing Officer adopted the deemed sale consideration at &8377; 49,52,545/-. The CIT(A) upheld this decision, leading to the current appeal.

3. Section 50C(2) stipulates that if the value assessed by the stamp valuation authority exceeds the fair market value, the Assessing Officer may refer the valuation to the Departmental Valuation Officer, even without a specific request from the assessee. Referring to the Hon'ble Calcutta High Court's judgment in Sunil Kumar Agarwal Vs. CIT, it is established that the Assessing Officer must act fairly and provide the option to follow the legal course, even if the assessee does not request a reference. Therefore, the Tribunal remitted the matter to the Assessing Officer to refer the valuation to the Departmental Valuation Officer and make a fresh assessment based on the report and after hearing the assessee.

4. The Tribunal highlighted that the point of time for adopting the stamp duty valuation is not relevant at present, as the matter is returned to the Assessing Officer for valuation by the Departmental Valuation Officer. However, it advised the Assessing Officer to consider binding judicial precedents, including the case of Dharmashi Bhai Sonani Vs. ACIT, when examining this aspect in the future.

5. Consequently, the appeal was allowed for statistical purposes, and the matter was restored to the Assessing Officer for a fresh assessment based on the Departmental Valuation Officer's report, ensuring a fair opportunity for the assessee and a speaking order. The decision was pronounced on 16th May 2018.

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