2017 (5) TMI 1151

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the two-third share from the sale of the said floor has been accepted by the Department. 3. The lower authorities had erred in not appreciating that plot No. A-2/204, Paschim Vihar was three kilometers from the first floor of house No. 37, Punjabi Bagh (West), New Delhi. 4. The lower authorities had erred in not appreciating that the valuation report of the Valuation Officer was not relevant in working out the value of the first floor of house No. 37, Punjabi Bagh (West), New Delhi. 5. The lower authorities had erred in not appreciating that unless the said plot was similar to the said first floor on account of situation, location, shape and size, emplacement and utilities, the valuation report would not be acceptable. 6. The lower authorities had erred in not appreciating that according to the High Court judgment in the cases of (i) Mani Singh Avtar Singh Vs IAC (1985) 151 ITR 233 (P&H), (ii) Subhas Malharirao Kachure & Others Vs IAC (1986) 159 ITR 726 (Karnataka), (iii) CIT Vs Leatherite Industries Limited (1984) 147 ITR 655 (P&H), (iv) CIT Vs Duncans Agro Industries Ltd. (1991) 192 ITR 310 (Delhi) and (v) Joseph Vallooran Vs CIT (1977) 108 ITR 544 (Orissa), where the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee on the said valuation report, the Assessing Officer determined 1/3rd share of sale consideration of the assessee at Rs. 22,68,687/- and made addition under the head 'long term capital gain' of Rs. 15,35,354/-. On further appeal to the ld. CIT(A), the assessee disputed the fair market value adopted by the Valuation Officer. The learned CIT(A) observed that the circle rates for the aforesaid area had been fixed at Rs. 27,300/- per sq. mtr. w.e.f. 18.07.2007 as against the rate of Rs. 31,107/- per sq. mtr. adopted by the Valuation Officer. Accordingly, keeping in view the period of sale involved, he adopted the prevailing market value at Rs. 20,000/- per sq. mtr. and determined the fair market value of the property at Rs. 50,86,329/- and 1/3rd share of the assessee was worked out to Rs. 16,95,442/- as against Rs. 22,68,687/- adopted by the Assessing Officer. The assessee is in appeal against the additions sustained by the learned CIT(A). 3. Before us, the learned counsel for the assessee submitted that for the purpose of capital gain under Section 45 of the Act, computation has been provided under Section 48 of the Act. According to said computation, for capital gain de....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessable by any authority of the State Government i.e. stamp valuation authority for the purpose of payment of stamp duty then the valuation adopted or assessed or assessable shall be deemed to be full value of consideration received accruing as a result of such transfer. The word 'assessable' has been introduced w.e.f. 01.10.2009 and prior to that value adopted or assessed by stamp valuation authority was required to be deemed the full value of consideration. Further, in sub-section 2 of section 50C of the Act, if the assessee claims before the Assessing Officer that the value adopted or assessed or assessable by the stamp valuation authority, exceeds the fair market value of the property on the date of transfer and the value adopted, assessed or assessable by the stamp valuation authority has not been disputed by the assessee before any authority, court or High Court, then in such circumstances, there is a provision that the Assessing Officer may refer the valuation of the capital asset to Valuation Officer. The relevant provision is reproduced as under: "Special provision for full value of consideration in certain cases. 50C. (1) Where the consideration received or accruing as ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....igh Court of Punjab & Haryana in the case of Quark Media House India (P.) Ltd. (supra), that when the Assessing Officer had not shown that the assessee received any consideration other than the consideration mentioned in the sale agreement, reference made to DVO under Section 55A was without jurisdiction. In the instant case, it is evident that the Assessing Officer did not invoke the provision of Section 50C of the Act and referred the matter to the Valuation Officer without observing the procedures laid in Section 50C(2) of the Act. The learned CIT(A) referred the Section 50C of the Act but held that it was not applicable in the case of the assessee, being no circle rate prescribed for the Punjabi Bagh area. 7. The ld. Sr. DR submitted before us that the learned CIT(A) relied on the letter dated 18.07.2007 of the Govt. of Delhi prescribing the circle rate of Rs. 27,300/- per sq. mtr. w.e.f. 18.07.2007, however, it was not clear that there was no circle rate prescribed prior to that date. The ld. Sr. DR further submitted that if the property has been registered by stamp valuation authority and value assessed or adopted is higher than the value shown by the assessee, in that circu....