TaxTMI 
TaxTMI 
TaxTMI 
2014 (3) TMI 1075
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.... the circumstances of the case, the Hon'ble ITAT is right in law in ignoring the findings of the Assessing Officer that at the time of sale of capital asset in question there was no notification of circle rates of the Delhi Government and hence reference to the DVO was necessary in the circumstances? 2. A few facts relevant for the decision of the controversy involved, as narrated in the appeal may be noticed. The assessee is an individual. He is deriving income from business, house property and capital gain. Return declaring an income of Rs. 62,45,110/- was filed by the assessee on 14.10.2006. During the course of assessment proceedings, the Assessing Officer found that the assessee had sold the immovable property at Delhi in two sale deeds and declared long term capital gain amounting to Rs. 1,15,37,918/- and out of sale proceeds, the assessee invested a sum of Rs. 1,16,00,000/- in National Housing bank Bonds eligible for deduction under Section 54EC of the Act. The Assessing Officer made reference to the Departmental Valuation Officer, New Delhi (DVO) under Section 55A of the Act who determined the fair market value of the said sold property at Rs. 2,40,00,400/- as against sale....
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....case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the assessing officer is of opinion that the value so claimed is less than its fair market value ; (b) in any other case, if the assessing officer is of opinion- (i) that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such percentage of the value of the asset as so claimed or by more than such amount as may be prescribed in this behalf ; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do, and where any such reference is made the provisions of subsections (2), (3), (4), (5) and (6) of section 16A, clauses (ha) and (i) of sub-section (1) and sub-sections (3a) and (4) of section 23, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the wealth-tax Act, 1957 (27 of 1957), shall, with the necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the assessing officer under subsection (1) of section 16Aof that Act. Explanation.-in this section, 'valuation officer' has ....
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....hat the transferor receives in lieu of the asset he parts with, namely, money or money's worth and, therefore, the very asset transferred or parted with cannot be the consideration for the transfer. It follows that the expression "full consideration" in the main part of section 12B(2) cannot be construed as having a reference to the market value of the asset transferred but the expression only named the full value of the thing received by the transferor in exchange for the capital asset transferred by him. The consideration for the transfer is the thing received by the transferor in exchange for the asset transferred and it is not right to say that the asset transferred an parted with is itself the consideration for the transfer. The main part of section 12B(2) provides that the amount of a capital gain shall be computed after making certain deductions from the "full value of the consideration for which the sale, exchange or transfer of the capital asset is made". In case of a sale, the full value of the consideration is the full sale price actually paid. The legislature had to use the words "full value of the consideration" because it was dealing not merely with sale but with ....
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....he expression 'with a view to ascertaining the fair market value of a capital asset'. In other words, the reference to a Valuation Officer under section 55A is for the object of ascertaining the fair market value of a capital asset. It is only when the Assessing Officer is required to ascertain the fair market value of a capital asset that the provisions of Section 55A can be invoked. There may be certain situations where the Assessing Officer is required to determine the fair market value. One of the situations is indicated in section 45(4) of the said Act where the profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a firm or other association of persons or body of individuals are to be computed is in question. In such a situation, the provision itself makes it clear that for the purposes of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer. In a situation, as one obtaining under section 45(4) of the Act, since there is no apparent consideration for the transfer of the ....