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TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 581
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....the assessee in his return of income filed pursuant to issuance of notice u/s 148 of the Act. 2. Briefly stated, the facts of the case are that during the year under consideration, the assessee has sold a plot of land situated at 2/25, Golimar Garden, Nagar Nigam Colony, Amer Road, Jaipur for a sale consideration of Rs. 15,85,000/-. The assessee, after considering the cost of acquisition, the cost of improvement and transfer expenses has determined long term capital loss at Rs. 22,030/- which has been duly reported in his return of income. As per information available with the Assessing Officer, value of the said property was enhanced by the Sub- Registrar from Rs. 15,85,000/- to Rs. 32,80,869/- and accordingly a show cause was issued to t....
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.... the assessee had sold an immovable property at Amer Road for a consideration of Rs. 15,85,000/- which had been subsequently enhanced to Rs. 32,80,689/- but no capital gain had been declared in the relevant return filed by the assessee. In response to notice u/s 148, the assessee filed a return in which a short term capital loss of Rs. 22,030/- was claimed from this property. It was further claimed during assessment proceedings that the assessee was a driver by profession and did not know about the DLC rate and the Registered valuer's report showing the acquisition of property at Rs. 15,76,030/- was also filed. The Assessing Officer applied the provisions of section 50C and after deducting the transfer expenses and cost of acquisition as....
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....sideration of property any amount less than value adopted or the assessed by Stamp Valuation Authority as section 50C does not recognize such curtailment of sale consideration in any manner. As regards the value adopted by the Assessing Officer, the approved valuer's report can not take precedence over the value determined by the Stamp Valuation authority and that is also the mandate of section of 50C. In view of the discussion as above the action of the Assessing Officer is upheld and the value of short term capital gain arrived at by the Assessing Officer is confirmed. The ground of appeal is dismissed." 4. During the course of hearing, the ld. AR reiterated the submissions made before the lower authorities and submitted that where d....
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....It was submitted that the provisions of section 50C are mandatory provisions and where the stamp duty authority has valued certain property at a value higher than the declared sale consideration, the AO is duty bound to adopt such valuation for the purposes of taxation. It was accordingly submitted that in the instant case the matter was not referred to the Valuation Officer as the assessee has already disputed the said valuation before the Tax Board, Ajmer and it was accordingly submitted that there is no infirmity in the order of lower authorities and the same may be kindly be confirmed. 6. We have heard the rival contentions and purused the material available on record. It is not in dispute that the during the course of assessment proce....
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....e valuation of the 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 -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)." 8. Under section 50C(2), fo....
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.... provided u/s 50C(2) of the Act, it is reasonably expected that such a revision petition should have been moved prior to or during the course of the assessment proceedings. At the same time, where such a petition has been moved subsequent to passing of the assessment order, as has happened in the instant case, in our view, there is no way, the AO would be ceased of such a development and in such a scenario, the second condition should be read as satisfied as on the date of passing of assessment order. In such a scenario, the assessee having objected to the valuation so adopted before the Assessing officer and no information available regarding any challenge of such valuation before the Tax Board, the AO should have ordinarily referred the m....