TaxTMI 
TaxTMI 
2011 (5) TMI 207
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....O is also highly excessive. 2. The learned CIT(Appeals) has grossly erred in holding that the proceedings of the DVO have become unfructuous although Assessment Order was passed subject to rectification of DVO's Valuation Report and under section 50(C)(2) the value determined by the DVO is binding on the Assessing Officer." 3. After hearing both the parties, we find that during the assessment proceedings Assessing Officer noticed that assessee has sold 1/3rd share of flat No. 21-C, 2nd Floor, Mittal Towers, C Wing, Nariman Point, Mumbai. The total sale consideration was shown at Rs. 1.72 crores. The assessee was requested to furnish the document of sale and purchase. The assessee filed a copy of the letter of Mulla & Mu....
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....ot received before the assessment. Since DVO's report was dated 24-3-2008 while the assessment had been completed on 31-12-2003, therefore, DVO's report could not be considered in view of the decision of the Hon'ble Calcutta High Court in the case of Reliance Jute Industries Ltd. v. ITO [1984] 150 ITR 643. In view of this decision, valuation proceedings have become infructuous and accordingly the appeal was dismissed. 5. Before us ld. Counsel of the assessee submitted that it was mandatory to make a reference to the DVO whenever the valuation shown by the assessee is less than the value of the property determined for stamp duty purposes and in this regard she relied on the decision of the Tribunal in the case of Ajmal Fragrances & Fashions....
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....the property at Rs. 8464 per sq.ft. which is nearer to the value adopted by the approved valuer. In any case, DVO has taken the instance of 'A' Wing which had much better view than the 'C' wing sold by the assessee. 7. On the other hand, ld. DR submitted that the DVO has clearly dealt with the report of the registered valuer at page-4 of his report, copy of which is placed at page 18 of the paper book, and has clearly pointed out that the approved valuer has considered the instances of other buildings. Further, the DVO has also dealt with the objection raised by the assessee before the DVO at page-5 of his report. She further submitted that the approved valuer has ultimately valued the property on carpet area basis, which is not correct. C....
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....s before any Assessing Officer that the value adopted or assessed [or assessable] by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer; (b) the value so adopted or assessed [or assessable] by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-secti....
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....s full value of the consideration. However, where assessee objects, then such valuation has to be referred to the valuation officer because as observed by the Tribunal in the case of Ajmal Fragrances & Fashions (P.) Ltd. (supra), Assessing Officer is not technically equipped to put a correct value. But this would further mean that once the matter is referred to the DVO, then valuation given by the DVO has to be adopted as the deemed consideration. In the said case, it was observed by the Tribunal as under : "A plain reading of the above provision clearly shows that normally the sale consideration can be taken on the same amount which has been adopted for the stamp duty purposes. However, sub-section (2) makes it very clear that whenever as....
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....ue on carpet area basis, which is not correct, because it is a common knowledge that buildings are purchased and sold through sale deed or other agreements which clearly refer to the total area, which is only of super area which includes walls, balconies, proportionate share of common corridors, staircases, lift area and other open spaces. We also find that DVO has clearly shown the value of three sale instances which is as under : Date of agreement Description of the property Consideration Area Rate Transferor/ Transferee 19-10-2005 142/A, 14th Floor, A-Wing, Mittal Towers, Nariman Point, Mumbai-21 (2 car parkings) Rs. 85,00,000- 957 sq.ft. Rs. 8464 per sq. ft. The Groundnut Extraction Exports Dev. Association Amit Nalin Securi....