TaxTMI 
TaxTMI 
TaxTMI 
2012 (1) TMI 229
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....proposition and gave submissions stating various drawbacks such as : 1. basement in rear building has no "commercial" value, 2. the height is 8-1/2' only (and not 10' or more as for shop), 3. gets waterlogged during the rainy season, 4. old premises more than 12 years was also used by tenant/lessee, 5. the said premises is sold on as is where is basis, 6. premises booked in February, 2001, so valuation of 2001 is to be considered. It was further submitted that initial payment for booking was done in February, 2001 and possession was given in September, 2003. However, the registration of document was made in December, 2004. 3. The AO thereafter referred the matter to the Departmental Valuation Officer (DVO) who estimated the fair market value (FMV) of the property at Rs. 20,55,000 as on the date of sale. The AO thereafter substituted the said value for the purpose of calculating the capital gain. 4. Before CIT(A) the assessee reiterated the same submissions as made before the AO. It was further submitted that the marginal difference of Rs. 1,55,000 was only 8.5 per cent of the estimated sale value which was within the tolerance limit of 15 per cent for variation as ....
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....y the assessee. 2. The learned CIT(A) erred in not appreciating that the difference between the sale consideration shown by the assessee and the value determined by the DVO was marginal and therefore, no addition was justified on account of the valuation determined by the DVO." 7. The learned counsel for the assessee reiterated the same submissions as made before the AO and the CIT(A). Referring to the DVO's report placed at paper book pp. 16 to 17, he submitted that the valuation adopted by the DVO shows that the FMV was much less than the value adopted by the stamp valuation authorities. He submitted that the difference between the value adopted by the DVO and the sale consideration received by the assessee is less than 10 per cent. Further valuation is a matter of estimation only. Referring to a number of decisions, he submitted that the assessee can challenge the valuation adopted by the DVO. Referring to the provisions of s. 50C(2) he submitted that if the assessee is debarred from challenging the valuation adopted by the DVO then the provisions of s. 50C(2) will not be workable and would become redundant. He accordingly submitted that the consideration received by the a....
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..... (1) Where the consideration received or accruing 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 s. 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-s. (1), where' (a) the assessee claims before any AO that the value adopted or assessed by the stamp valuation authority under sub-s. (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-s. (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 AO may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-ss. (2), (3), (4), (5) and (6) ....
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....where such valuation has been made by a Valuation Officer under s. 16A, give such Valuation Officer an opportunity of being heard; (b) in any other case on request being made in this behalf by the AO, give an opportunity of being heard to any Valuation Officer nominated for the purpose by the AO." "23A(7). The CWT(A) may, (a) at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal; (b) before disposing of any appeal, make such further enquiry as he thinks fit or cause further enquiry to be made by the AO or, as the case may be, by the Valuation Officer." "24(5) The Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and any such orders may include an order enhancing the assessment or penalty : Provided that if the valuation of any asset is objected to, the Tribunal shall,' (a) in a case where such valuation has been made by Valuation Officer under s. 16A, also give such Valuation Officer an opportunity of being heard; (b) in any other case, on a request being made in this behalf by the AO, give an opportunity of being heard also to a....