2013 (2) TMI 456

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....eal was admitted by a Bench of this Court on 30.06.2008 on the following substantial questions of law:- 1."Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was justified in law in holding that valuation done by the Departmental Valuer was to be adopted. 2.Whether on the facts and circumstances of the case the fair market value of a property within the meaning of section 50C of the Act, is to be taken as that fixed by the Stamp Duty Authority or that valued by the Department Valuer. 3.Whether on the facts and in the circumstances of the case for ascertaining the fair market value the value on the date of actual transfer/possession is to be considered or the value on the date of agreement to....

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....led the appeal before the Ist Appellate Authority, who observed that the A.O. obtained the valuation made by the D.V.O. and in view of the ratio laid down in the case of C.W.T. vs. Dr. H.Rahman (1991) 189 ITR 307, Allahabad as well as C.B.D.T. Circular No.8 of 2002 dated 27.08.2002 and the same is final. So, the A.O. was directed to adopt the value of sale consideration which was estimated by the D.V.O. Being aggrieved, the department filed second appeal before the Tribunal, who vide impugned order uphold the order of the Ist Appellate Authority. Still not being satisfied, the department has filed the present appeal. In this backdrops, Sri D.D.Chopra, learned counsel for the appellant justified the order of the A.O. On the other hand, Sr....

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....on 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-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation 1- For the purposes of thi....

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....able property." It provides that where the consideration declared to be received or accruing as a result of the transfer of land or building or both is less than the value adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall be deemed to be the full value of the consideration, and capital gains shall be computed accordingly under section 48 of the Income Tax Act. It is further provided that where the assessee claims that the value adopted or assessed for stamp duty purposes exceeds the fair market value of the property as on the date of transfer, the Assessing Officer may refer the valuation of the relevant asset to a Val....