TMI Blog2014 (1) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... so, then the learned Commissioner (Appeals) and the Tribunal can also examine into the fact whether the difference of less than 15% between the actual sale consideration and the value adopted by the V.O. can be ignored on the facts and circumstances of the case. Neither the Assessing Officer nor the learned Commissioner (Appeals) entertained any such objection or has given any cogent reasons - If the assessee has made various objections to the V.O's report, the learned Commissioner (Appeals) was bound to look into these objections so as to arrive at proper fair market value - He was also bound to consider the contentions of the assessee that in case of difference of less than 15% between the value shown by the assessee and the value est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of property of Rs. 10,05,783, after adjusting brought forward losses and current year's loss. The assessee has sold his office situated at Narasai Natha Street, Koha Bazar, Mumbai, for a total consideration of Rs. 12,00,000 on 27th March 2003. However, for the purpose of stamp duty, the stamp valuation authority has determined the fair market value at Rs. 20,57,500. Accordingly, the Assessing Officer, during the first round of proceedings, has adopted the sale value of Rs. 20,57,500, while computing the capital gains in terms of provisions of section 50C. The assessee had objected to such a valuation and had made a request to the Assessing Officer to refer the valuation of the property to the Valuation Officer (for short "the V.O.") of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee that even though the difference between the fair market value determined by the V.O. at Rs. 13,79,913 and actual sale consideration of Rs. 12,00,000, received by the assessee is not more than 15%, however, such a difference can be ignored in view of various objections. The main reason given by the learned Commissioner (Appeals) for rejecting the assessee's contention was that in view of sub-section (3) of section 50C, only when the value determined by the V.O. exceeds the stamp valuation, then the value assessed by the stamp valuation authority should be taken as a sale value. It cannot be vice-versa that is, when the valuation done by the V.O. is less than the stamp valuation authority. In that case, the valuation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t because the difference between the value shown by the assessee is less than 15%. There cannot be any yard stick of such percentage. 7. We have carefully considered the rival submissions, perused the relevant findings of the learned Commissioner (Appeals) as well as the Assessing Officer. The assessee has sold the property for a sum of Rs. 12,00,000, and has computed the long term capital gain at Rs. 10,05,783, whereas the V.O. to whom reference was made under section 50C, has estimated the fair market value at Rs. 13,79,913. For the purpose of section 50C, the Assessing Officer has adopted the value determined by the V.O. and has computed the long term capital gain at Rs. 11,38,020. Section 50C is a deeming provision wherein the fair ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (Appeals) and the Tribunal and section 35 deals with rectification of mistakes. A combined reading of these sections provide that insofar as the Assessing Officer is concerned, he is bound by the valuation adopted by the V.O. whereas the learned Commissioner (Appeals) and the Tribunal can entertain objections relating to such valuation and V.O's valuation is not binding upon them. Sub-section (3) of section 50C provides that if the value ascertained by the V.O. exceeds the value adopted or assessed by the stamp valuation authority then such valuation adopted or assessed by the stamp valuation authority shall be taken, that is, if the V.O's value exceeds the value adopted by the stamp valuation authority, the same should be ignored ..... X X X X Extracts X X X X X X X X Extracts X X X X
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