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2016 (9) TMI 1204 - AT - Income TaxCapital Gain on sale of plot of land - reference made to the DVO u/s. 55A - whether the value of sale shown by the assessee is on the lower side ? - Held that:- It is an undisputed fact that the A.O. has made a reference u/s. 55A of the Act to the DVO to determine the correct market value as on the date of the transfer. Section 55A, permits reference to DVO by the Assessing Officer under certain circumstances. Such reference, however, is with a view to ascertaining the fair market value of capital asset for the purposes of chapter IV. In the instant case, the reference was made to DVO for ascertaining the fair market value of the capital asset as on the date of sale. We find that Section 50C provides for special provision for full value of consideration in certain cases. The said section provides a deeming fiction under which consideration received or accruing as a result of transfer of a capital asset can be replaced by the value adopted or assessed by stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer. In the said Section 50C of the Act, Sub-section (2) permits the assessee to dispute such valuation adopted by the Stamp Valuation Authority and in such a case, it is open for the Assessing Officer to refer the valuation of the capital asset to a Valuation Officer. However, in the present case, we find that the A.O. has made reference u/s. 55A for the determination of market value for the purposes of the computation of capital gain u/s. 48 of the Act. Considering the facts in totality, in the light of the decision of in the case of Gauranginiben S. Shodhan (2014 (2) TMI 78 - GUJARAT HIGH COURT ) we hold that the value adopted as per the DVO’s report is uncalled for and the A.O. is directed to accept the sale consideration of ₹ 6.25 crores and compute the capital gains accordingly. - Decided against revenue.
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