TaxTMI 
TaxTMI 
2011 (3) TMI 969
X X X X Extracts X X X X
X X X X Extracts X X X X
....roperty sold as per DVO report for the purpose of computing capital gains in place of value adopted by Stamp Valuation Authority and considered by A.O. as per provisions of Section 50C(1) of the I. T. Act, 1961." 3. The brief facts leading to the above issue are that the assessee is co-owner, to the extent of ½ share, of property at 76, Cotton Street, Kolkata-7 (covered area of 4265 sft. at the ground floor, 3785 sft. at the first floor and 3000 sft. at the second floor containing 8 cottahs 2 chittaks 22 sft. as per sale deed) and the same was sold by the assessee during the year under consideration and disclosed sale consideration in the sale deed for her half share at Rs.20 lacs and computed Long Term Capital Gains (hereinafter referred to as 'the LTCG') at nil by taking indexed cost of acquisition at Rs.30,81,600/-. The assessee contended that she has filed valuation report of the said property as on 1.4.1981 and the fair market value as on the date was at Rs.6.42 lacs. On that basis, the assessee computed the fair market value as on 1.4.1981 and indexed cost was calculated at Rs.30,81,600/-. The Assessing Officer during the course of assessment proceedings, notic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....831 of 1982 and 2168 of 2000. She stated that notional rent at Rs.12,000/- p.a. was also deposited by the tenants in the Court as against the property tax of Rs.23,296/- p.a. According to her, this property was loss making proposition and further no buyers were forthcoming to buy a 100 year old property, which is under litigation and tenanted. She contended that the Stamp Duty Authorities valued the property, which is much more than fair market value of the property as on the date of transfer. She stated that sale deed of this property was signed, executed and submitted before the Sub-Registrar on 15.10.2004 and the requisite stamp duty, as per law, was affixed and paid but received the sale consideration as declared at Rs.20 lacs for her half share. Subsequently on 31.12.2006 i.e. more than two years after the sale was completed, the stamp duty was assessed at a very high figure, as per rates prevailing at that time and the assessee was not even a party to that sale, which had been completed long before the assessment of stamp duty. Finally, she stated that this property was assessed for payment of stamp duty on 31.12.2006, whereas it was sold by the assessee on 15.10.2004 and ret....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... during the hearing stages." 5. Further, the CIT(A) referred this matter to the DVO for ascertaining the fair market value of the said property. The Assessing Officer obtained report from the DVO and submitted through JCIT to CIT(A). The assessee submitted no objection for adoption of value as determined by DVO vide report No. 1876/DVO/ITD/09-10/507 dt 18.11.09.The DVO value the property at Rs.30,87,675/- and the CIT(A) after considering the provisions of section 50C of the Act, directed Assessing Officer as under : "The appellant, on the other hand, contended that as per law the A.O. should have referred the matter to DVO as the value adopted by the stamp duty Authority is much more than the FMV of the property as on the date of transfer. My Ld. Predecessor after considering the submissions directed the A.O. to refer the matter to DVO. Accordingly the A.O. got the property valued and send the valuation report. The DVO valued the property at Rs.30,87,675/-. The appellant after going the valuation report has accepted the above said valuation. After considering the facts and provisions of section 50C, I find that my Ld. Predecessor has rightly directed the A.O. to re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provisions of sub-section (1), where - (a) the assessee claims before any Assessing Officer that the value adopted or assessed 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 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....