2013 (12) TMI 1685

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....th law when the assessee objected to the value adopted by the stamp valuing authority before the assessing officer. 1.2 The additions made by invoking the provisions of section 50C of the IT Act are unwarranted and against the provisions of law keeping in view the facts and circumstances of the case. 1.3 The Ld. CIT(A) is not correct in upholding the order passed u/s 143(3) r.w.s. 147 when legally under the statute the assessing officer ought to have completed the assessment under the provisions of section 143(3) of the I.T. Act. 2. In the course of arguments, Ld. Counsel did not press the ground no.1.3 with reference to the issue of jurisdiction in re-opening the assessment u/s 147. Accordingly, the above ground is tre....

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....red by the assessee. 5. Before us the Ld. Counsel submitted that the AO should have referred the matter for the valuation by DVO as it is held by various judicial authorities that the word "may" in section 50C(2) shall be considered as "shall" and A.O. is duty bound to refer the matter to the valuation cell, when assessee raised objection about the valuation. The assessee relied on the following cases:- 1) Meghraj Baid Vs. ITO (2008) 4 DTR 509 (Jodh) 2) ITO Vs. Smt. Manju Rani Jain (2008) 24 SOT 24 (Del) 3) Ajmal Fragrances & Fashions (P) Ltd. Vs. ACIT (2009) 34 SOT 57 (Mumbai) 4) A. Shaik Mohideen Vs. ITO (2009) 24 DTR 63 (Che) 5) Ravi Kant Vs. ITO (2007) 110 TTJ (Del) 297 6. The Ld.D.R. h....

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.... matter of valuation in the light of sub-s.(2) of s. 50C to the DVO for determining the consideration of this plot sold by the assessee under s.50C." 9. Similar view was expressed by other coordinate benches relied on by the assessee in the course of arguments. Considering the provisions of subsection 2 of section 50 wherein it is very clearly mentioned that if the assessee claims before any assessing officer that the value adopted as assessed by stamp valuation authority exceeds the fair market value, the assessing officer may refer the valuation of the capital asset to a valuation officer and sub-section 3 provides that subject to the provisions contained in sub-section 2, only the value adopted or assessed by stamp valuation authority....