2011 (2) TMI 937

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....luation to the  Departmental Valuation Officer as required u/s.50C of the Act." 2. The issue is in respect of the applicability of provisions of section 50C. The assessee is a co-owner of property sold during the previous year, which was situated at Plot No. 10B of Sion-Matunga Estate, Mumbai -400 023 during the financial year 2004-05, the said property was sold for the total consideration of Rs. 4,25,00,000/- as per the development agreement dated 22.6.2004. The said development agreement was registered and for the purpose of the stamp-duty payment the fair market value of the property was determined at Rs. 4,94,61,000/-. The A.O. applied section 50C of the Act and adopted the valuation made by the Stamp duty authorities as conside....

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.... Act. Sub-section (2) provides that if the assessee claims before the A.O. that the value adopted by the Stamp Valuation authority exceeds the fair market value of the property as on the date of the transfer which has not been disputed by the assessee in any legal proceedings then the A.O. may refer the case to the Valuation Officer, as per the provisions of the Wealth-tax Act, 1957. The Ld. CIT (A) declined to entertain the plea of the assessee for referring the matter to the DVO by holding that the word 'may' is used by the Legislature and it is discretion of the A.O. to refer or not to refer. In the case of Meghraj Baid (supra) it is held that the word "may" used in sub-sec. (2) to sec. 50C signifies that in case the A.O. is not satisfie....

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....of the A.O. for referring the matter to the Valuation. 6. We have heard the parties. The Ld. Counsel submitted that the DVO has determined the fair market value of the property as on 1.4.1981 at Rs. 29.62 lakhs as against the value declared by the assessee at Rs. 43.10 lakhs. It is argued that no reference can be made by the DVO for determining the lesser fair market value and this issue stands covered in favour of the assessee by the decision of the ITAT Mumbai in the case of Smt. Sarala N. Sakraney vs. ITO 46 DTR (Mum)(Trib) 208. He, therefore, pleaded that the A.O. may be directed to adopt the fair market value as per valuation made by assessee's valuer. We have also heard the Ld. D.R. 7. After elaborately discussing the provisions....