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2012 (7) TMI 121 - AT - Income TaxWhether Commissioner is justified in substituting full value of consideration disclosed by the assessee on transfer of a capital asset with the fair market value – validity of revisionary proceedings - V.O. failed to take cognizance of auction at Vasant Kunj is prior to the sales effected by the assessee - report of the V.O. can be termed as an erroneous one which has been effected in the assessment order and which resulted the assessment order as erroneous. The cognizance taken by the Learned Commissioner to that extent can be justified – Amount of Rs. 33,47,66,257 directed to be substituted in place of Rs. 12,78,79,481 by the Learned Commissioner. This amount of Rs. 33,47,66,257 cannot be substituted. The appeal of the assessee is partly allowed. Area of operation of Section 55A of the Act is "to ascertain the fair market value of a capital asset". Since section 48 of the Act through which capital gain is computed prescribe to compute the gain on the "full value of the consideration received or accruing as a result of the transfer". Therefore, section 55A cannot give any assistance to compute the capital gain u/s.48 of the I.T. Act. - The expression "full value of consideration" (Sec. 48 ) does not have the same meaning and can not be used in place of "fair market value" (Sec. 55A). Scope of reference u/s.55A vis-a-vis section 50C of I.T. Act. - for the purposes of the computation of capital gain u/s. 48, a reference can be made to DVO only in a situation as prescribed u/s. 50C of the Act. and not otherwise. Section 142A - "Estimate by Valuation Officer in certain cases" - In this section as well there is no power vest with AO to seek the help of Valuation Officer in respect of determination of capital gain prescribed u/s.48 of the Act. The expression "full value of sale consideration" is not the same as "fair market value" as appearing in section 55A. Action of CIT for substituting the full value of consideration disclosed by the assessee with the fair market value is not sustainable.
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