Valuation under section 50C: higher departmental value rejected where sub-registrar value equals sale consideration; appeal allowed

Application of valuation for transfer pricing under section 50C was contested where the assessing officer applied a higher departmental value due to a typographical error. The sub-registrars calculation statement showed the property value equal to sale consideration and stamp duty paid on that amount; the value was not below the jantri. The tribunal found no basis for an addition based on departmental information given the clerical mistake and parity between document value and consideration, and accordingly allowed the assessees appeal.

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Issues: Whether the addition made by the Assessing Officer under Section 50C by adopting a higher value from departmental information is sustainable where the Sub-Registrar's Calculation Statement shows a value equal to the registered sale consideration and stamp duty was paid on that registered value.

Analysis: Section 50C permits adoption of the value shown in prescribed authorities' records as full value of consideration for transfer of immovable property. The Assessing Officer relied on departmental information indicating a higher value, but the Sub-Registrar's Calculation Statement correctly recorded the property value as equal to the registered sale consideration. Stamp duty was paid on the registered consideration, and there was a noted typographical error in the departmental information which led to an inflated figure being used. The Sub-Registrar's valuation document and evidence of stamp duty payment demonstrate that the registered sale consideration was not less than the jantri value and accurately reflects the transaction value.

Conclusion: The adoption of the higher departmental figure is not sustainable where the Sub-Registrar's valuation equals the registered sale consideration and stamp duty has been paid on that amount; the addition under Section 50C is therefore unwarranted and the appeal is allowed in favour of the assessee.

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