TaxTMI 
TaxTMI 
2011 (7) TMI 421
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....to the facts of the case; 2. That the ld. CIT (Appeals) has erred in not adjudicating ground Nos. 4, 5, 6 &7 of grounds of appeal agitated before him; 3. (i) That on the facts and circumstances of the case, the ld. CIT (Appeals) has erred in upholding the reference for valuation under section 142A of the Income-tax Act and the report of DVO also made in terms of section 142A of the Income-tax Act; 3. (ii) That the ld. CIT (Appeals) did not appreciate that the DVO did not submit report on Form No. O-1 (Rule 8D of Wealth-tax Rules) as required under section 55A of the Income-tax Act; 4. (i) That on the facts and circumstances of the case, the ld. CIT (Appe....
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....operty to the DVO. It was submitted that reference of valuation of property to the DVO under section 142A was not correct. The Assessing Officer could have made reference to valuation cell either under section 50C or under section 55A of the Act. The ld. CIT(A) after considering the facts of the case observed that under the Income-tax Act reference to the valuation cell can be made under three different sections, namely, section 50C, section 55A and section 142A of the Act. He further observed that all the three sections talk about reference by the Assessing Officer to DVO for the valuation of the property as per market value. The Assessing Officer had referred the valuation of the property to the DVO for the purpose of estimating the fair ....
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....and gone through the material available on record. Under section 142-A of the Act reference to the valuation officer can be made for the purpose of making an assessment or re-assessment where an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or 69B of the Act is required to be made. The Assessing Officer may require the valuation officer to make an estimate of such value and report the same to him. From the plain reading of provisions of section 142A(1) it is clear that reference to the valuation officer can be made for the purpose of estimating the value of any investment referred to in section 69, 69A or section 69....
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....ed or assessable shall, for the purposes of section 48, be deemed to the full value of the consideration received or accruing as a result, of such transfer. Thus, for the purpose of computing capital gains in respect of capital asset being land and building or both, the full value of consideration will be the value adopted or assessed for the purpose of stamp duty. Sub-section (2) of section 50C empowers the Assessing Officer for making reference to the valuation officer in the cases where the assessee claims before assessing officer that the value adopted, assessed or assessable by stamp valuation authority under section 50C(1) exceeds the fair market value of the property as on the date of transfer. Clause (b) of section 50C(2) provides t....
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.... 69, 69A and 69B of the Act and not for the purpose of computation of capital gains under section 48 of the Act. 7. The next issue for consideration relates to upholding the addition of Rs. 24,98,600 on the basis of DVO's report. The ld. CIT (Appeals) while deciding the issue observed that the DVO had followed proper procedure for the valuation of the property and has given the opportunity to the assessee before preparing the valuation report and DVO had noted this observation in para 7.3 of his report. He further noted that fair market value of the property has been calculated by comparing the sale instance of duplex flat No. 500 on first and second floor, Hawa Singh Block, Asian Games Village complex having similar specifications after....