2009 (11) TMI 943

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....the Assessing Officer in computing short term capital gain at R.45,88,700 as against Rs. 18,73,270 declared by the assessee by invoking provisions of section 50C of the Income-tax Act, 1961 (the Act). 3. Facts of the case, in brief, are that the assessee during the impugned assessment year has sold an industrial gala for a consideration of Rs. 20 lakhs. The Assessing Officer observed that the stamp duty authorities have valued such property at Rs. 44,62,000. However, the assessee has computed the capital gain at Rs. 18,73,270 after deducting cost of gala at Rs. 1,04,000 and stamp duty of Rs. 22,700. The Assessing Officer asked the assessee to explain as to why the sale value of gala should not be considered at Rs. 44,62,000 as per sectio....

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.... duty authorities at Rs. 44,62,000 u/s. 50C and made the addition of Rs. 25,88,700 as short term capital gain being the difference between the amount declared by the assessee and the amount finally determined by him. 5. In appeal the learned CIT(A) upheld the action of the Assessing Officer. Aggrieved with such order of the CIT(A), the assessee is in appeal before us. 6. After hearing both the sides, we find there is no dispute to the fact that the assessee has sold the industrial gala at Rs. 20 lakhs as per agreement dated 28th December, 2005. There is also no dispute to the fact that the value adopted by the stamp duty authorities for registration of the above gala was Rs. 44,62,000. There is also no dispute to the fact that when th....

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.... 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 such reference as they 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 this section, "Valuation Officer" sh....