TaxTMI 
TaxTMI 
2010 (6) TMI 640
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....addition of Rs. 8,77,400 made by the AO on the basis of port of Departmental valuer." 3. The only issue raised in the present appeal is in respect of computation of capital gains. The assessee during the year under consideration had sold the property against which income from long-term capital gains was shown. The assessee had shown the sale consideration at Rs. 15,25,000. The AO referred the valuation in the case to the Departmental valuer under s. 55A of the IT Act to assess the fair market value of the property. As per the report of the DVO, the fair market value on the date of sale was Rs. 24,02,400. The learned counsel for the assessee pointed out that the rates adopted by the valuer were of Devi Talab Mandir locality, whereas prope....
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....sed the records. The only issue arising in the appeal is whether while computing the income from capital gains, the fair market value of the property on the date of sale can be adopted as against the sale consideration received by the assessee. We find that similar issue as in the present appeal has arisen before the Tribunal in the case of Dy. CIT v. Dharam Pal Aggarwal in IT Appeal No. 498/Chd./2008, relating to asst. yr. 2006-07, wherein vide order dt. 7th Oct., 2009 it was held as under : "9. The said s. 48 of the Act provides that for computing the income under the head capital gains, the full value of consideration received or accruing as a result of the transfer of the capital asset is to be taken and thereafter any expenditure in....
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....ence to the market value of the capital asset which is the subject-matter of the transfer. The full value of consideration does not have any reference to the market value but only to the consideration referred to in the sale deeds as the sale price of the assets which have been transferred.' Their Lordships further held as under : 'The reference to a Valuation Officer under s. 55A is for the object of ascertaining the fair market value of a capital asset. It is only when the AO is required to ascertain the fair market value of a capital asset in such cases as covered by s. 45(4) or s. 45(1A) that the provisions of s. 55A can be invoked.' 12. In the facts of the present case before us, the provisions of s. 50C of the Act were not in....
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....hereafter compute the income from long-term capital gains on sale of property. Thus, we dismiss the around of appeal raised by the Revenue." 6. In the facts of the present case, the assessee had sold the property situated in Gali Talien, Jalandhar for a total consideration of Rs. 15.25 lacs. The said value of consideration was accepted by the registering authorities and was not disturbed. The provisions of s. 50C of the Act were neither applicable nor applied by the AO. The AO referred the assessability of fair market value of the property sold by the assessee to the Departmental valuer under s. 55A of the Act. The DVO computed the value at Rs. 25,02,400, which was adopted by the AO as the basis for computing the long-term capital gains.....