TaxTMI 
TaxTMI 
2010 (5) TMI 511
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....he Act and hence confirming the Assessing Officer's order is untenable in law. (4) The Commissioner of Income-tax (Appeals) further failed to appreciate that the reference under section 50C(2) was for the purpose of computing the capital gains and was conceptually different from the value fixed by the Special Deputy Collector (Stamps) under section 47A of the Indian Stamp Act, intended only for fixing the stamp value and hence the denial of the reference as contemplated under the provisions of the Income-tax Act was unjustified and unsustainable in law. (5) The Commissioner of Income-tax (Appeals) ought to have considered the catena of decisions upholding the reference under section 50C(2) of the Act and thus directed the officer to make the reference to the Departmental Valuation Officer and arrive at the fair market value for the purpose of computing the capital gains. (6) The Commissioner of Income-tax (Appeals) ought to have appreciated the foregoing submissions in the proper perspective and directed the Assessing Officer to make a reference to the Departmental Valuation Officer to ascertain the fair market value and allowed the grounds raised in this regard. It is prayed t....
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.... denied merely because there was a valuation done by the stamp valuation authority. The crux of its contention was that, despite its specific request, the Assessing Officer declined to refer the valuation to the Departmental Valuer. The assessee also tried to bring to the notice of the learned Commissioner of Income-tax (Appeals), certain alleged deficiencies in valuation made by the Special Deputy Collector (Stamps) and also certain locational disadvantages of the property. The learned Commissioner of Income-tax (Appeals) required a report from the Assessing Officer on the contentions of the Assessing Officer. The Assessing Officer thereupon reiterated what all was mentioned by him in the assessment order, in the report given to the learned Commissioner of Income-tax (Appeals). The learned Commissioner of Income-tax (Appeals), after considering the submissions of the assessee as well the Assessing Officer, was of the opinion that a reference having been made to the Special Deputy Collector (Stamps) against the value originally fixed by the registration authorities, sub-section (2) of section 50C of the Act, could not be called into service by the assessee for claiming a reference ....
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....er the Indian Stamp Act to the Special Deputy Collector (Stamps), no further reference of the same property for valuation could have been made by the Assessing Officer to the Departmental Valuer. 7. We have heard the rival submissions and perused the orders. The contention of the Department is that property was initially valued by the registration authority at Rs. 1,46,43,635 and the purchaser having objected to this value, the matter was referred to the Special Deputy Collector (Stamps) who fixed the guideline value at Rs. 1,28,03,500. Therefore, according to the Revenue, the assessee could not claim a reference of valuation of such property to the valuation cell of the Department. On the other hand, the assessee's grievance is that the value as fixed by the Special Deputy Collector (Stamps) was not on a reference as specified in clause (b) of sub-section (2) of section 50C of the Act. According to him, the Special Deputy Collector (Stamps) was the sole authority under the Stamp Act authorised for fixing market value. In other words, according to the assessee, such fixation of market value by the Special Deputy Collector (Stamps) did not take away its right to require reference t....
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....value of the property. 30. Rule 4 of the Tamil Nadu Stamp (Prevention of Undervaluation of Instruments) Rules, 1968, provides the procedure on receipt of reference of the instrument under section 47A. As per rule 4, on receipt of a reference under sub-section (1) of section 47A, from a registering officer, the Collector shall issue a notice in Form I, to every person by whom, and to every person in whose favour the instrument has been executed, informing him of the receipt of the reference and asking him to submit to him his representations, if any, in writing to show that the market value of the property has been truly set forth in the instrument, and also to produce all evidence that he has in support of his representation, within 21 days from the date of service of the notice. Further, if necessary the Collector may record a statement from persons to whom a notice under sub-rule (1) has been issued, which included the assessee, the transferor. The Collector may even inspect the property after due notice to the parties concerned. After considering the representations, received from the person to whom notice under sub-rule (1) has been issued, and after examining the records and ....
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....r in the provisions of section 50C of the Income-tax Act or section 47A of the Stamp Act or Rules made thereunder about the adoption of the guideline value. Hence, the contention that section 50C is arbitrary and violative of article 14 cannot be accepted. Incidentally, we can refer the recent judgment of the Supreme Court in the case of the Government of Andhra Pradesh v. Smt. P. Laxmi Devi [2008] 4 SCC 720, in which even the onerous condition of deposit of fifty per cent. of the deficit duty for filing the appeal to the Collector is also upheld." 9. Thus it can be seen that the constitutional validity of section 50C of the Act was upheld after noting the various safeguards available to an aggrieved person regarding valuation of a property under the Indian Stamp Act as well as the Income-tax Act. At paragraph 33, the hon'ble jurisdictional High Court has specifically held that sub-sections (2) and (3) of section 50C are further safeguards given to the assessee. Thus the safeguards given at sub-sections (2) and (3) of section 50C of the Act are in addition to the safeguards under the Stamp Act. Therefore, we are unable to appreciate the stand of the Revenue that once a valuation h....