TaxTMI 
TaxTMI 
2008 (4) TMI 292
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....re of the petitioner in the property bearing Final Plot No. 547, Sub-plot Nos. 7 and 8, Town Planning Scheme No. 3, Moje Kocharab, Taluka: City, in the District and Sub-district of Ahmedabad. 2. The petitioner, was the co-owner of the aforesaid property along with her husband and son. On 29.11.1994, the petitioner entered into an agreement to sell the said property as a whole, along with other co-owners, for a sum of Rs. 1.40 lacs. The petitioner, who was having 25 per cent. share in the property, was thus, entitled to Rs. 35,00,000/- as her share in the sale consideration. 3. As the value of the share of the petitioner exceeded the figure of Rs. 20,00,000, the provisions of Chapter XX-C of the Act were attracted and the petitioner pr....
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....the respondents and the superior authority has challenged the aforesaid reference by way of this petition. On behalf of the petitioner, learned senior advocate has contended that on 26.4.1996 when the Reference was made, no assessment was pending and the reference could not have been made by the Assessing Officer because return of income has been filed only on 27.8.1996. It was further submitted that the reference was bad in law because section 55A of the Act did not permit the authority to find out the fair market value of the property on the date of the sale. 7. On behalf of the respondents, learned senior standing counsel submitted that once the petitioner-assessee has exercised option under section 55(2) of the Act, the Assessing Off....
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....3),(4),(5) and (6) of section 16A, clauses (ha) and (i) of sub-section 91) and sub-sections (3A) and (4) of section 23, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall with the necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section(1) of section 16A of that Act. Explanation- In this section, "Valuation Officer" has the same meaning, as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957)." 9. The concept of fair market value for the purpose of Chapter-IV of the Act pertaining to computation of income from capital gain can be found under section 55(2)(b) of ....
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....cation dated Nil (Annexure D) from respondent No. 2 -DVO to the petitioner in so far as the fair market value of the property as on 1.4.1981 is concerned, the petitioner had claimed the same at a sum of Rs. 6,25,000 as per registered valuer's report. Therefore, the Assessing Officer was required to form an opinion that the value so claimed is less than the fair market value. The estimated value proposed by the DVO is shown at Rs. 3,97,000, which is less than the fair market value shown by the assessee as on 1.4.1981. Therefore, clause(a) of Section 55A of the Act cannot be made applicable. Clause (b) of Section 55A of the Act can be invoked only in any other case, namely, when the value of the asset claimed by the assessee is not supported ....
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....es "to ascertain the fair market value of the property, a reference was made by this office to the Valuation officer on 26.4.1996, since, according to this office, the value declared by the assessee as on the date of execution and registration of the sale deed was lower by more than 25 per cent. The petitioner filed a return on 27.8.1996, for assessment year 1996-97 and the fair market value as on 1.4.1981 was shown at Rs. 6,25,000. The capital gain was worked out at Rs.17,43,750 taking the sale value of the property at Rs.17,50,000 as per the banakhat dated 29.11.1994. In the above background of facts it is humbly submitted that since the capital gain is required to be worked out on the fair market value of the property on the date of the ....