TaxTMI 
TaxTMI 
2016 (5) TMI 1022
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....azra Road, Kokata-700019 (herein after referred to as property). The assessee and his brother had half share each over the property. By a registered sale deed dated 04.03.2009, the property was sold for a consideration of Rs. 90 lakhs. The registrar of Assurances valued the property for the purpose of stamp duty and registration at a sum of Rs. 2,76,76,138/-. Sec.45 of the Act lays down that any profit or gain arising from the transfer of a capital asset effected in the previous year shall be chargable to income tax under the head "capital gains" and shall be deemed to be the income of the previous year in which the transfer took place. Sec.48 lays down the method of computation of long term capital gain and it reads as follows: "S....
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....lause (b)(i) of Sec.55(2)(b) would be attracted only when "the capital asset became the property of the Assessee" before 1st April, 1981. It is not in dispute that the assessee and his brother became owners of the property prior to 01.04.1991 and therefore they were entitled to adopt fair market value of the property as on 01.04.1981 for the purpose of ascertaining the cost of acquisition of the property. 3. The assessee filed computation of long term capital gain. The fair market value of the property as on 01.04.1981 was estimated at Rs. 43,40,400/-. The aforesaid fair market value as on 01.04.1981 was also supported by a report by a registered valuer one Shri N.K.Chakravarty. The computation of long term capital is given by the assess....
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....Term Capital gain : Rs.1,92,01,007/- Assessee is 50% owner of property And his share of L.T.C.G. is : Rs.96,00,504/- Investment in Capital Gain Bond : Rs.40,00,000/- Balance : Rs.56,00,504/-" 5. Aggrieved by the aforesaid order of AO the assessee preferred appeal before CIT(A). Before CIT(A) the assessee pointed out that the DVO in the very same report has estimated the fair market value of the property as on the date of sale i.e. 04.03.2009 at Rs. 1,68,82,444/- . If that value is adopted as full value of consideration received on transfer there would be no capital gain chargeable to tax in the hands of the assessee. The assessee gave the computation of long term capital gain if the sale value as per DVO is....
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....did not dispute stamp authority value, the provision of section 50C(2) also does not apply. The DVO determined the value of property as on 01/04/1981 at Rs. 14,56,208/- and indexed cost of property as on 01/04/1981 came to Rs. 84,75,131/-. The appellant was owner of 50% of the property. The argument of the AIR that AO is duty bound that he should accept the sale value of the property which determined by the DVO in his brother's case of the said property. In this case, the appellant in return of income himself shown the sale value of the property of Rs. 1,38,38,069/-. Then, the AO rightly taken the value which shown by the appellant in his return of income. So, the argument of the appellant is not tenable. Considering t....
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.... shall, for the purposes of section 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-section (1), where - (a) the assessee claims before any Assessing Officer that the value adopted or assessed by the stamp valuation authority under sub-section (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 subsection (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 as....
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....purpose of the stamp duty. The legislature has taken care to provide adequate machinery to give fair treatment to the citizen/Tax payer. There is no reason why the machinery provided by the legislature should not be used and benefit thereof should be refused. Even in a case where no such prayer is made by the Ld. Advocate representing the assessee, who may not have been properly instructed in law, the assessing officer, discharging a quasi judicial function, has the bounden duty to act fairly and to give a fair treatment by giving him an option to follow the course provided by law. The assessee has not disputed the valuation of the stamp authority. It is very unfortunate that the AO has worked out the capital gain tax liability including th....