Stamp valuation under section 50C fails when no effective Valuation Officer reference or report exists before assessment.

Where an assessee disputes the stamp valuation and seeks reference to the Valuation Officer, an addition under section 50C cannot be sustained unless an effective valuation reference is made and a valuation report exists before completion of assessment. The statutory scheme required the Assessing Officer to act on the objection and obtain valuation assistance before substituting the stamp value. Section 155(15) was inapplicable because there was no existing DVO valuation to revise, and the delay in securing a report could not be shifted onto the assessee. The addition was therefore deleted.

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Issues: Whether the addition made under section 50C of the Income-tax Act could be sustained when the assessee disputed the stamp duty valuation and requested reference to the Valuation Officer, but no effective reference or valuation report existed before completion of the assessment.

Analysis: The assessment was completed on the basis of the stamp valuation because the valuation report was not received, yet the record and the RTI reply showed that no effective reference to the Valuation Officer was available. The assessee had specifically objected to the stamp valuation and sought reference for determination of fair market value. In such a situation, the statutory scheme required the Assessing Officer to act on the assessee's objection and obtain valuation assistance before substituting the stamp value. Section 155(15) was held inapplicable because there was no existing DVO valuation to revise. The delay and failure in obtaining a valuation report could not be shifted onto the assessee, and restoring the matter would in effect extend the limitation period for completion of assessment.

Conclusion: The addition under section 50C was not sustainable and was deleted.

Ratio Decidendi: Where an assessee disputes stamp valuation and seeks reference to the Valuation Officer, an addition based on stamp value cannot survive if no effective valuation reference is made and no valuation report exists before completion of the assessment.

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