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2020 (9) TMI 1267 - ITAT PUNEAddition of difference in excess of 10% between sale value and stamp duty value - AO show caused as to why the difference in stamp duty value and sale value should not be added to the total income in terms of section 43CA - HELD THAT:-Admittedly the AO find the difference between sale value and stamp duty value but, did not refer to DVO for determination of fair market value u/s. 50C(2) and 50C(3) of the Act but however he adopted the procedure contemplated u/s. 43CA of the Act wherein it explains the consideration received or accruing as a result of the transfer of an asset is less than the value adopted or assessed or assessable by any authority of a State Government, the value adopted by such authority shall be deemed to be the full value of consideration for the purpose of profits and gains from transfer but however in our opinion is subject to the satisfaction the provisions contemplated in sub-section (2) of section 43CA - Admittedly, there was no occasion left to AO in assessment proceedings to refer the issue to the DVO for determination of fair market value. As discussed above, the assessee placed reliance on the orders of this Tribunal and they are on record by way of legal compilation. This Tribunal in the case of K.K. Nag Ltd. [2012 (6) TMI 184 - ITAT PUNE] for A.Ys. 2005-06 and 2006-07, order dated 25-05-2012 held that the AO ought to have referred the matter to the Valuation Officer instead of straightaway deeming the value adopted by the Stamp valuation authority as the full value of consideration. In a such situation where the assessee claims before the AO that the value adopted or assessed by the Stamp valuation authority exceeds fair market value, the AO shall adopt the course mentioned in section 50C(2)(a) of the Act. In the present case, the assessee contended before the CIT(A) about the AO not referring the matter to the file of Valuation Officer but however on the alternative plea the CIT(A) restricted the addition to the extent indicated above. Since, the contention made before us that it is mandatory for AO referring to DVO for determination of fair market value in our considered opinion, we deem it proper to remand the issue to the file of AO to follow the procedure contemplated under the Act. The assessee is liberty to file all evidences in support of its claim. Thus, the order of CIT(A) is set aside. Appeal of assessee is allowed for statistical purpose.
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