2016 (12) TMI 52

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....is engaged in the business of construction and sale of flats. During the year under consideration, the Assessee had sold 4 flats on 07/08/2006 for a sale consideration of Rs. 1,96,60,000/-. On requiring the assessee to submit the sale agreements, it was submitted that the sale agreements were not registered and that it was not possible to determine the stamp duty value as per the provisions of Section 50C of the Income Tax Act, 1961. 5. Not convinced with assessee's reply, the AO referred the valuation of these flats to the District Valuation Officer (DVO), for the determination of the Fair Value of the property sold, who had declared the value to be Rs. 2,07,51,130/-. Difference in the valuation was added by the AO in assessee's income u/....

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....ted to the CBDT circular No. 5/2010 dated 03/06/2010, 324 ITR 319 and the decision of Madras High Court in the case of CIT vs Sugantha Ravindran 2013 352 ITR 488 (Mad). 9. On the other hand, learned DR Shri A. Ramachandran relied on the order of the lower authorities and contended that the AO altered the sale consideration value of the property, which was subject to transfer, based on report offered from District Valuation Officer. Thus, it is established that the market value determined of the said property is determined by an expert person i.e., DVO who is authorised to do the same as per his qualification. Accordingly it was argued that the addition so made by AO to Long Term Capital Gain of Rs. 10,91,130/- is justified and correct. Acc....

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....l be deemed to be the full value of consideration received or accruing as a result of such transfer for computing capital gain. However, the present scope of the provisions does not include transactions which are not registered with stamp duty valuation authority, and executed through agreement to sell or power of attorney." 11. Thus, these amendments have been made applicable with effect from 1" October, 2009 and will accordingly apply in relation to transactions undertaken on or after such date. In the instant case, the transactions were entered during the financial year 2006-2007 i.e., 1st April 2006 to 31st March 2007 which is prior to 01/10/2009. Therefore, as per CBDT, circular provisions of Section 50C are not applicable in so far a....