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2014 (3) TMI 1075 - HC - Income TaxReference of matter to the DVO u/s 55A - whether the Assessing Officer was justified in making a reference to the DVO under Section 55A of the Act for ascertaining the fair market value of the capital asset which was transferred? - Held that:- The expression 'full value of consideration' for sale used in Section 12B(2) of the Income Tax Act, 1922 (in short, 'the 1922 Act') cannot be construed as the market value but as the price decided upon by the parties to the transaction. It needs to be mentioned that the provisions of Section 12B of the 1922 Act pertained to capital gains and sub section (1) was pari materia to Section 45(1) of the Act whereas sub section (2) of Section 12B of 1922 Act was corresponding to section 48 of the Act. The Hon'ble Supreme Court reiterated the aforesaid view in CIT v. Gillanders Arbuthnot & Co. (1972 (9) TMI 13 - SUPREME Court ). Thus, it emerges that the expression 'Full value of consideration' appearing in section 48 of the Act does not have any reference to the fair market value but to the consideration referred to in the sale deeds as the sale price of the assets which have been transferred. In view of the above, it is concluded that reference under Section 55A of the Act to the Valuation Officer for ascertaining the Fair market value of the capital asset was unjustified. Accordingly, the substantial questions of law are answered against the revenue and in favour of the assessee
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