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TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 404
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.... be deleted as fair market value of the property is less than the valuation, as per DVO's valuation report, adopted for computation of capital gains under section 50C(2) of the Act. In effect thus, correctness of the DVO's report has been assailed before us, but then, as is the settled legal position, when a reference is made to the DVO, the Assessing Officer has a duty to "so far as the valuation of the asset in question is concerned, proceed to complete the assessment in conformity with the estimate of the Valuation Officer". The question then arises whether we can deal with the question of correctness of the DVO's report- particularly when the Assessing Officer apparently has no say in this regard. 3. It was in this backdrop that we pu....
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.... the DVO's report. This report, after all, cannot be treated as the last word on valuation, and there has to be a grievance redressal mechanism against incorrectness of the DVO's valuationparticularly when the DVO has not properly disposed of the objections of the assessee. 4. Let us first take a look at the relevant legal provisions. Section 50 C, as it stood at the relevant point of time, was as follows: Special provision for full value of consideration in certain cases. 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 or assessed or assessable by any authority of a State Government (hereafter in this sec....
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....ation Officer" shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). 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. (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed or assessable by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed or assessable by such aut....
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.... in case where such valuation has been made by a Valuation Officer under section 16A, give such Valuation Officer an opportunity of being heard; (b) in any other case on request being made in this behalf by the Assessing Officer, give an opportunity of being heard to any Valuation Officer nominated for the purpose by the Assessing Officer. 6. Section 24(5) of the Wealth Tax Act, 1957, the scheme of which also stands incorporated in Section 50C as is specifically stated therein, provides as follows: (5) The Appellate 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 t....
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....mandatory requirement of law. That is the unambiguous scheme of the law. 8. With this clarity on the scheme of the law, let us revert to the facts of this case. 9. The assessee before us is an individual. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has sold a bungalow for Rs. 1,15,00,000 but the stamp duty valuation of the said bungalow, as evident from the sale deed, was Rs. 1,40,00,000. The assessee, however, contended that the fair market price of the property was much less than the stamp duty valuation, and, accordingly, a reference was made to the Departmental Valuation Officer under section 50C(2). The valuation as per DVO was Rs. 1,27,12,402. The assessee made elaborate su....