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2011 (4) TMI 868 - AT - Income TaxReference to DVO - Applicability of section 55A - whether AO bears a power to refer 'any other case' if he is of the opinion that fair market value of assets exceeds the value shown - Held that:- Understanding the expression "full value of consideration"(section 48) does not have the same meaning and cannot be used in place of " fair market value" (section 55A). Section 48 do not prescribe that the capital gain is to be computed on the fair market value of a capital asset, but it only prescribes to charge capital gain on the consideration received, therefore, section 55A cannot be used for the purpose of computation of capital gain under section 48 of I.T. Act. There is no clause of substitution while computing the capital gain under section 48 and the gain has to be computed on the basis of the "full value of the consideration". If the AO is of the opinion, that valuation of the capital asset is required, but such reference can be made only to ascertain the fair market value, therefore, the applicability of section 55A(b)(ii) is also limited one - section 55A cannot give any assistance to compute the capital gain under section 48 of the I.T. Act. AO is empowered to refer for valuation of a capital asset under specific circumstances as prescribed under this section provision of section 50C where he has found that the consideration received is less than the stamp duty. Whereas in the present appeal there is a finding on facts that the consideration is not less than the stamp duty. Admitted factual position is that the "Jantri' rate as per the 'Stamp Duty Authority' was at Rs. 4,500 and Rs. 7,000 per sq.meter respectively for the Plot Nos.161/1 & 181/1, whereas the assessee had sold them @ Rs. 41,860 per sq.mtr. Therefore the AO was not empowered to refer to DVO because as per section 50C(2) the AO may refer the valuation of a capital asset where assessee claims before AO that the value adopted by the Stamp Valuation Authority exceeds the fair market value of the property as on the date of transfer - in favour of assessee.
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