TaxTMI 
TaxTMI 
2019 (3) TMI 213
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....AY. 2015-16 on 16-11-2015, declaring total income of Rs. 12,86,200/-, consisting of profit from business of Rs. 1,95,224/- and Long Term Capital Gain of Rs. 10,90,977/-. 3. During the assessment proceedings u/s. 143(3) of Income Tax Act [Act], Assessing Officer sought to apply the provisions of Section 50C of the Act for computing Long Term Capital Gain. Assessee objected to the same and requested for reference to the Departmental Valuation Officer. However, Assessing Officer applied the provisions of Section 50C and determined the total sale consideration as Rs. 2,62,81,200/- and brought the difference of Rs. 1,21,63,200/- to tax as part of Long Term Capital Gain. 3.1. Aggrieved, assessee preferred an appeal before the CIT(A) and the....
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....luation Officer u/s. 50C, the Assessing Officer is required to refer the matter to the Departmental Valuation Officer and if the Assessing Officer does not wish to refer to the DVO, he has given his reasons for doing so. He submitted that there are various decisions to this effect by the Co-ordinate Benches of this Tribunal. He furnished a copy of the Tribunal's order in the case of Sushil Kumar Nathany Vs. ITO in ITA No. 2128/Hyd/2017 for the AY. 2013-14, dt. 28-02-2018. 5. The Ld.DR, on the other hand, supported the orders of the authorities below. 6. Having regard to the rival contentions and the material on record, we find that admittedly the assessee had objected to the adoption of the SRO Value. The Assessing Officer did not dea....
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.... Explanation 2.-For the purposes of this section, the expression "assessable" means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty. The applicability of this provision was considered by various Benches of the Tribunal as well as various High Courts in a number of cases. 6.1. The Hon'ble Allahabad High Court in the case of CIT Vs. Sh. Chandra Narain Chaudhri in ITA No. 287 of 2011 vide decision dt. 29-08-2013 held that : "11. The question as to whether the assessee filed any objections before the Stamp Va....
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....the assessee along with his claim/objection under Section 50-C(2) of the Act. If he does not accept the report, he has to record the reason for referring the matter to the DVO. The reasons in either case must have nexus with the objection/claim made by the assessee and the objection, which may be raised by the department against the valuation determined in the report of the approved valuer. 12. In the present case, we find that CIT (A) has correctly observed in his order that the provisions of Section 50 C (2) are essentially to be read in conjunction with the provisions of Section 50 C (1) of the Act. He also found that in the present case both ingredients of provisions of Section 50 C (2) are present, which made it neces....
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....on without referring to the valuation officer, even though, AO objected for adopting SRO value. In this connection, we refer to the decision of the coordinate bench of ITAT, Vishakhapatnam in the case of R. Suhasini Bheemunipatnam (supra), wherein the coordinate bench has held as under: "7. We have considered the rival arguments and examined the record as placed before us. There is no dispute with reference to raising the objection before the assessing officer itself by the assessee. The assessing officer is duty bound to refer the valuation to the valuation officer. Once the assessee has disputed the value adopted by the stamp valuation authority, even though the same was not disputed before the stamp valuation authority, the coor....
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....ceeds 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 shall be taken as full value of consideration received or accruing as a result of the transfer. Therefore, it is mandatory on the part of the assessing officer to refer the valuation to the DVO whether assessee objects the same before the stamp valuation authority or not. Therefore, we are of the opinion that both the assessing officer and the Ld. CIT(A) erred in not considering the assessee's request. Respectfully following the decisions of the coordinate benches, we are of t....