Invocation of Section 50C valuation dispute leads to remand for de novo assessment and DVO valuation on fresh evidence

Invocation of valuation under stamp authorities as the full value of consideration was contested; additional purchase and sale deeds were produced after assessment and require verification, so the matter is remitted for fresh inquiry. The material newly filed by the taxpayer is directed to be examined by the assessing authority through de novo assessment and further enquiry. A reference to the District Valuation Officer for computation of full value of consideration is to be considered in light of the challenged stamp valuation. Both impugned orders are set aside and the file is restored to the assessing officer for verification and fresh adjudication.

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Issues: Whether, in view of additional evidences filed before the Tribunal and the procedural defects in the proceedings below, the appellate orders should be set aside and the matter remitted to the Assessing Officer for de novo assessment with directions to admit and verify the fresh evidence and to consider referral to the DVO under Section 50C.

Analysis: The assessee produced purchase and sale deeds for properties which were not available during the assessment and first appellate proceedings. The Assessing Officer had completed assessment under best judgment due to time bar and had adopted stamp valuation authority figures under Section 50C. The first appellate order was passed ex parte without adjudication on merits. The additional documents filed before the Tribunal require verification and enquiry by the Assessing Officer and may affect computation of full value of consideration and deductions under Section 48. The matter involves valuation issues that may warrant reference to the Departmental Valuation Officer as contemplated by Section 50C(2)(b). In the interest of justice and to ensure the assessee is afforded proper opportunity, a remand for fresh assessment and consideration of the new evidence is appropriate.

Conclusion: The appellate orders are set aside and the matter is remitted to the Assessing Officer for de novo assessment after admitting and verifying the additional evidence and after taking such steps as may be necessary, including reference to the DVO under Section 50C where appropriate; appeal allowed for statistical purposes.

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