AI Drafter 
TaxTMI 
TaxTMI 
2016 (6) TMI 36
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.... the land despite the fact that the appellant had relied upon the Valuation Report of a Registered Valuer. 3. That CIT(A)-II, Agra has erred in law and on facts in invoking the provision of Section 50C(1) of Income Tax Act, 1961 without making reference to District Valuation Officer for ascertaining the Fair Market Value. 4. That CIT(A)-II, Agra has erred in law and on facts in ignoring the provision of clause (a) of section 54F of Income Tax Act, 1961, which stated that if the cost of new asset is not less than the net consideration of original asset, the Capital Gain shall not be charged under section 45. of Income Tax Act, 1961. 5. That CIT(A)-II, Agra has erred in law and on facts by misinterpreting the provision of section 50C(1) of Income Tax Act, 1961 and invoking the same for the purpose of Section 54F of the I.T. Act, 1961. 6. That CIT(A)-II, Agra has erred in law and on fact by not considering the Cost of Improvement of Rs. 3,20,424/- and the Investment made by the appellant in a new Residential House of Rs. 20,20,000/-, while computing Long Term Capital Gain u/s 45 read with Section 54F of the I.T. Act, 1961. 7. That CIT(A)-II, Agra has erred in law and on....
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....n under section 54F, part relief to the extent of Rs. 4,59,216/- was granted to the assessee subject to certain verification to be made by the AO. 4. Aggrieved by the same the assessee filed the present appeal before us. 5. The grievance of the assessee in ground number 1, 2 and 3 & 7 is against the action of the Ld. AO in not referring the valuation of the property sold during the year to the D.V.O for determining its true value for the purpose of computation of capital gain as per the provision of section 50C(1) and (2) of the Act. 6. Ld. Counsel for the assessee vehemently argued that it had never accepted the value adopted for stamp duty purposes. Ld. Counsel for the assessee stated that during assessment proceedings, the assessee was not given adequate opportunity of hearing and the order was passed within a week of raising the issue before the assessee. Ld. Counsel further stated that during appellate proceedings ample evidences were adduced before the Ld. CIT(A)against the adoption of the stamp duty value of the property Ld. Counsel also filed additional evidence before us to show that the property was in dispute. Alternatively Ld. Counsel for the assessee stated th....
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.... land for a sale consideration of Rs. 19,60,000/-. In the return of income filed by the assessee the consideration for the purpose of calculating capital gain on the sale of the land was taken at Rs. 19,60,000/- and the assessee had not substituted the stamp duty value of the property for the purpose of calculating the capital gain earned as provided by section 50C of the Act . The sole issue arising before us is regarding the applicability of the provision of section 50C(2) in the facts of the present case. The provision of section 50C is a special provision for determining the value of consideration for the purpose of calculating income from capital gain in certain cases. For a better understanding of the issue at hand the provision of section 50C(1) and (2) are being reproduced here under: 50C. (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 or assessable by any authority of a State Government (hereinafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, ....
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.... be refer the matter to a valuation officer. To decide the issue at hand, it has to be seen whether the assessee had challenged the adoption of the stamp duty value as consideration or not. A perusal of the return of income filed at Paper book -2, reveals that the assessee had shown the consideration received of Rs. 19,60,000/-as the consideration for the purpose of calculation capital gains under section 48. During assessment proceedings the assessee was served with a show cause notice dt. 23/12/2011 reproduced at page 26 of CIT(A) order, for substituting the stamp duty valuation of the property at Rs. 60,40,000/- as per the provision of section 50C, in response to which the assesee vide her letter dt. 27/12/2011 filed a fresh calculation of capital gain, reproduced at page no. 27 of the CIT(A) order by taking the stamp duty valuation of the property. Thereafter assessment order was passed on 30/12/2011. Thus within a span of 7 days and after giving the assessee only one opportunity the assessment was framed by taking the stamp duty valuation of the property as consideration. Clearly adequate opportunity was not given to the assessee during assessment proceedings to dispute the....