2017 (12) TMI 742

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....sessee is in relation to the action of the ld. CIT(A) in upholding the determination of long term capital gain at Rs. 12,67,528/- as against the capital loss suffered at Rs. 6,70,713/-. 3. Facts of the case, in brief, as emanating from the order of the Assessing Officer are that during the course of assessment proceedings, the Assessing Officer found that during the year under consideration, the assessee sold two properties for Rs. 15,25,000/- and Rs. 19,75,000/- respectively but stamp duty was paid on the amount of Rs. 23,77,520/- and Rs. 30,60,720/-. Therefore, the Assessing Officer was of the opinion that an amount of Rs. 19,38,240/- deserves to be added into the total income of the assessee as per provisions of section 50C of the I.T....

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....h was prior to our purchase and discovered later on when he made his claim on the said property in the court in 2004. The reply of the assessee has been considered and it was found that the contention of the assessee is not satisfactory because no litigation matter was mentioned in sale deed of properties. After discussion, the total income of the assessee as per provisions of the section 50C of the I.T. Act 1961 was computed by the Assessing Officer as under:- Business Loss as shown by the assessee (-)Rs. 3,01,5687/- Total Sale of property (As per section 50C) Rs.54,38,2407- Index cost 3383500 x 551 447     Rs. 41,70,712/- Taxable income Rs. 9,65,960/- 5. Aggrieved, the assessee went in a....

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....y perusal of the provisions laid down under section 50C of the Act reproduced hereinabove, we fully concur with the finding of the Id. CIT (Appeals) that when the assessee in the present case had claimed before Assessing Officer that the value adopted or assessed by the stamp valuation authority under sub section (1) exceeds the fair market value of the property as on the date of transfer, the Assessing Officer should have referred the valuation of the capital asset to a valuation officer instead of adopting the value taken by the state authority for the purpose of stamp duty. The very purpose of the Legislature behind the provisions laid down under sub section (2) to section 50C of the Act is that a valuation officer is an expert of the su....