TaxTMI 
TaxTMI 
2009 (1) TMI 920
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....18,43,158 and agricultural income of Rs. 5,19,400. During the accounting year relevant to asst. yr. 2004-05, the assessee had sold a property which was jointly held by him with his wife Smt. K.M.M. Sithi Fousia Beevi. The sale consideration was shown at Rs. 53,56,200 and the long-term capital gain was computed at Rs. 32,12,013. The assessee had 50 per cent share in this property and, therefore, Rs. 15,06,007 was offered for tax as long-term capital gain. 3. The AO invoked the provisions of Section 50C of the Act and took the full value of consideration at Rs. 74,93,130. The assessee's share in the long-term capital gain was accordingly computed by the AO at Rs. 26,74,471. The CIT(A) confirmed the AO's action and his order has bee....
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.... • that the decisions relied upon by the learned Authorised Representative were given in the context of Section 52(2) and are not applicable to the present case. • that no claim was made by the assessee before the AO saying that the value adopted by the stamp valuation authority exceeded the fair market value of the property on the date of transfer. • that, in the circumstances, the AO was under no obligation to refer the valuation of the property to valuation officer. • that there was no need to remit the matter back to the file of the AO as suggested by the learned Authorised Representative. 6. We have considered the rival submissions in the light of material on record and the precedent c....
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....ayment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of Section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provisions of Sub-section (1), where: (a) the assessee claims before any AO that the value adopted or assessed by the stamp valuation authority under Sub-section (1) exceeds the fair market value of the property as on the date of transfer; (b) the value so adopted or assessed by the stamp valuation authority under Sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, Court or the High Court, ....
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.... and that a ground raised to this effect, before the CIT(A) was rejected by him. He drew our attention to the ground of appeal raised by the assessee before the CIT(A) as under: At the outset your petitioner begs to submit that he was afforded no opportunity by the learned ITO to prove that the valuation by the stamp valuation authority is excessive. 8. The CIT(A) rejected the plea by saying that there was no need for the AO to obtain the assessee's approval for invoking the provisions of Section 50C of the Act. 8.1 In our opinion the approach of the CIT(A) is unsustainable. It is true that Section 50C(1) does not require the AO to issue a show-cause notice to the assessee before invoking the deeming provisions of Section....