Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 951 - AT - Income TaxCapital gain - reference to DVO for determining fair market value of the property as contemplated u/s 50C(2) - Held that:- Claim of the assessee to make reference to DVO for determining fair market value of the property as contemplated u/s 50C(2) of the 1961 Act can be raised at an appellate stage as taxes are required to be computed in accordance with and authority of law. Section 50C(2) and 50C(3) of the 1961 Act clearly allows the reference to DVO if the assessee dispute ready reckoner as adopted by stamp duty valuation authorities of the State Government, the assessee has challenged the ready reckoner rates by giving cogent reasons detailed above. In our considered view, this issue also needs to be set aside and restored back to the file of A.O. for de-novo determination of the issue on merits, the AO shall refer the matter to the DVO for determining fair value of market as contemplated u/s 50C(2) and 50C(3) of the 1961 Act, wherein the AO shall compute short term capital gains arising from sale of property after considering valuation report of DVO. The assessee is directed to produce all relevant evidences/ explanations before the AO as well before DVO to support its contentions, which shall be admitted by the AO/DVO in the interest of justice and adjudicated on merits in accordance with law. Needless to say that the AO/DVO shall provide sufficient and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in accordance with law.
|