2019 (1) TMI 844

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.... the capital gain. 3. Brief facts of the case are that the assessee has sold a property for a consideration of Rs. 1.00 crore. The Sub-Registrar, Panvel, Maharashtra determined the value of the property for the purpose of charging stamp duty at Rs. 1,49,31,000/-. The ld.AO confronted the assessee as to why sale consideration of the property for the purpose of computing capital gain ought not to be deemed equivalent to the amount on which stamp duty charged by Sub-Registrar, as provided in section 50C of the Act. The assessee contended that it has sold property for Rs. 1 crore only which is real price of the property, and therefore, reference under section 50 C (2) be sent to the DVO for determining fair market value of the property. Some....

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....tion, the ld.counsel for the assessee relied upon the order of the ITAT, Pune Bench in the case of Rahul Construction Vs. DCIT, ITA No.1543/PN/2007. Copy of this order of the Tribunal is placed on record. 5. On the other hand, the ld.DR contended that there was no choice for the ld.CIT(A) except to adopt the consideration determined by the DVO. He made reference to section 50C(2) and contended that once stamp duty valuation authority has determined a higher value of the property for the purpose of charging stamp duty, then such higher value deserves to be deemed as full consideration. This higher value has been replaced by the DVO at a little lower figure, hence that has to be accepted. 6. We have duly considered rival contentions and....

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.... the FMV determined by the DVO he upheld the action of the AO. It is the submission of the learned counsel for the assessee that the assessee can challenge the valuation determined by the DVO as per the provisions of s. 50C(2) of the Act. However, according to the learned Departmental Representative once the matter is referred to the DVO and the value determined by the DVO is less than the value adopted by the stamp valuation authorities, the AO has no other option but to adopt the value so determined by the DVO. We find the provisions of s. 50C read 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 o....

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....ons contained in subs. (2), where the value ascertained under sub-s. (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-s. (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer." A bare reading of the above provisions shows that as per the provisions of s. 50C(1) the value adopted by the stamp valuation authorities in respect of transfer of a capital asset shall be deemed to be the full value of consideration received or accruing as a result of transfer if such value is more than the value of consideration received by the assessee. As per the provisions of sub-s. (2) of the said section if the a....

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....nd of appeal not specified in the grounds of appeal; (b) before disposing of any appeal, make such further enquiry as he thinks fit or cause further enquiry to be made by the AO or, as the case may be, by the Valuation Officer." "23A(7). The CWT(A) may, "24(5) The Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and any such orders may include an order enhancing the assessment or penalty : Provided that if the valuation of any asset is objected to, the Tribunal shall,- (a) in a case where such valuation has been made by Valuation Officer under s. 16A, also give such Valuation Officer an opportunity of being heard; (b) in any other case, on a request being made in....