2013 (8) TMI 834

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....nder provisions of Sec. 50C, for the transfer of property at Wagle Estate. 2. The Ld. CIT(A) has erred in concluding that the AO was justified in not referring the valuation of the asset to Valuation Officer as required under provision of Sec. 50C(2). 3. The Ld. CIT(A) has erred in concluding that brought forward unabsorbed depreciation of Rs. 32,76,385/- cannot be set off against the Long Term Capital Gains of the current year." 3. Facts relating to the grievance raised vide ground No. 1 & 2 relates to the sale of property of Wagle Estate. During the course of the assessment proceedings, the Assessing Officer noticed that the assessee has made transfer of capital assets being land and buildings located at Poona and Wag....

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....tter to the DVO, once the assessee has claimed, why the stamp duty value should not be adopted. 7. Per contra, the ld. Departmental Representative supported the findings of the lower authorities and submitted that provisions of Sec. 50C are mandatory. 8. We have considered the rival submissions and perused the orders of the lower authorities. Finance Act of 2002 has inserted Sec. 50C under the head ' Special provision for full value of consideration in certain cases'. Sec. 50C(1) provides that where the consideration received or accruing as a result of the transfer of a capital asset is less than the value adopted or assessed or assessable for the purpose of payment of stamp duty in respect of such transfer, the value so adopt....

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....e current year. 10. This grievance appears to be consequential to the grievance raised vide ground No. 1 & 2, as the AO has computed the deemed capital gain, the assessee has claimed set off of brought forward unabsorbed depreciation to be set off against the Long Term capital gains so computed. A perusal of the assessment order shows that this plea has not been entertained by the AO. When this matter was agitated before the Ld. CIT(A), the Ld. CIT(A) at para 5.3 while disposing ground No. 4 of that appeal has thus held as under:- "There is no merit in this ground of appeal as the brought forward unabsorbed depreciation cannot be set off against the long term capital gain computed in the hands of the appellant on transfer of pro....