TaxTMI 
TaxTMI 
2017 (3) TMI 80
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....operty's l/3rd share, in Shop at Plot No. 9929 to 9935, New Rohtak Road, New Delhi-110005, against the gross sale registered of Rs. 2,00,0007- is unjust, unlawful addition on the basis of circle rate, is unjustified and the material placed on the record not considered. Thus the order is illegal and unwarranted. 2. That the learned CIT (A) has failed to appreciate the facts brought on record by the assessee to substantiate and justify the sale consideration received. 3. That the provision of section 50(c)(2) was not applicable as Agreement of Sale was made in April, 2007 and Sale Deed was registered on 17.07.2007 and circle rates were published on 18.07.2007. Ignoring this fact and evidence placed on record is unwarranted, not justif....
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....ied by any government authority or any state authority at the relevant point of time and later on w.e.f. 18/07/2007 first-time the prescribed rates were notified. It was therefore stated that there was no circle rates on existence on the date of the sale. However, the Ld. assessing officer rejected the contention of the assessee and stated that minimum rates for valuation of land and immovable properties in Delhi were already in existence in the assessment year 2008 - 09 and the same rate should be applied for working out the capital gain of the assessee. Thereafter applying the provisions of section 50 C of the income tax act, he determined the full circle value of the property at Rs. 4 135643/- and adopted 1/3rd of such sum at Rs. 1 37854....
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....able property, if actual sales consideration is less than that. However, if the assessee objects during the course of assessment proceedings about adoption of the circle rate then the Ld. assessing officer has to refer the same to the valuation officer for valuation mandatorily. In the present case, it is apparent from the assessment order itself that assessee has objected to the adoption of the circle rate stating that it is a tenanted property and on the date of sale, there was no circle rate prescribed for that property. In view of this we are of the opinion that Ld. assessing officer has failed in his duty to refer the matter to the valuation cell for determining fair market value of the property and then working out capital gain liabil....