Section 50C valuation dispute remanded for fresh examination and DVO report on transfer of property rights.

Section 50C was disputed on the ground that only a right in the property, and not the land or building itself, had been transferred, but that factual claim was not satisfactorily established before the lower authorities. The alternative request for a fresh examination was accepted because the transaction required further verification, including valuation by the Departmental Valuation Officer and consideration of supporting evidence. The matter was therefore remanded to the Assessing Officer for de novo adjudication, with the assessee to be given an opportunity to substantiate its case, resulting in only partial relief.

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Issues: Whether the addition made by applying section 50C of the Income-tax Act, 1961 to the transfer transaction was sustainable, and whether the matter required remand for valuation by the Departmental Valuation Officer.

Analysis: The assessment was made on the footing that the declared consideration for transfer of immovable property was lower than the stamp duty valuation. The assessee claimed that what was transferred was only a right in the property and not land or building itself, and therefore section 50C was inapplicable. The record, however, showed that the factual foundation necessary to decide that plea had not been satisfactorily established before the lower authorities. In these circumstances, the alternative request for a fresh examination of the transaction, with valuation to be obtained from the Departmental Valuation Officer and the claim to be adjudicated on the basis of evidence, was found to be justified.

Conclusion: The matter was remanded to the Assessing Officer for fresh adjudication after obtaining the Departmental Valuation Officer's report and allowing the assessee an opportunity to produce supporting evidence; the assessee obtained only partial relief.

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