TaxTMI 
TaxTMI 
2018 (7) TMI 580
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....,71,000/- in respect of property situated at Plot No. E-2 & E-3, Krishi Vihar, Unit No. 14, Gopal Pura Bye Pass Road, Jaipur. 2. During the course of assessment proceedings, the Assessing Officer observed that the Registrar has adopted high value of sale consideration than the declared sale consideration in respect of aforesaid property. Therefore, the Assessing officer was of the view that the provisions of section 50C are applicable in the instant case and sale consideration can be taken at Rs. 66,29,838/-. The assessee was issued a show cause and in response, the assessee submitted as under:- "It is submitted that the DLC rates adopted at Rs. 66,29,838/- for the total land is highly excessive and do not represent the correct market va....
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....ed with the stamp duty charged by the Registering Authority. The AO further observed that despite a period of almost 6 years, the assessee has not adduced any evidence proving that the stamp duty charged has been challenged by him. It was accordingly held by the AO that stamp duty charged by the Registering Authority is very well as per law and agreed upon by the assessee. Accordingly, the capital gain arising on the sale of land was calculated on the sale consideration as per value adopted by the Stamp Authority at Rs. 66,29,838/-. 4. Being aggrieved, the assessee carried the matter in appeal and reiterated the submissions made before the Assessing Officer. Further, he filed a copy of the valuation report dated 14.01.2016 wherein the valu....
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....f the CIT(A) and submitted that the AO was duty bound to adopt the valuation as adopted by the stamp duty authority being higher than the declared valued in terms of section 50C of the Act. However, he didn't raise any objection where the matter is remanded back to the AO for reference to the DVO. 7. In order to appreciate the rival contention, we refer to the provisions of section 50C of the Act which are reproduced as under:- "50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed 86 by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for t....
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....he capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation 1.-For the purposes of this section, "Valuation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). (3) Subject to the provisions contained i....