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2018 (7) TMI 940 - AT - Income TaxLong term capital gains on sale of immovable property - fair market value adopted by the A.O. as per the provisions of section 50C - Non reference to DVO - Held that:- In case of dispute, the assessee is free to approach the stamp valuation authority. In case the assessee did not dispute in any appeal or revision or no reference has been made before any High Court, and objects before the AO for adopting the SRO value for capital gains as per section 50C, the A.O. may refer the valuation of the capital asset to valuation officer and the value determined by the valuation authority shall be taken as full value for the purpose of capital gains. In the instant case, the assessee has not disputed the valuation made by the stamp valuation authorities for the purpose of stamp duties but objected for adoption of the same for capital gains. The assessee explained that SRO value was not disputed because of payment of stamp duty by the buyer. The assessee also did not request the AO for making reference to the Departmental valuation officer (DVO) for valuing the property. Assessee brought on record regarding the non exclusion of tenants share and complexities involved in sale of the property and for getting the lesser rate - AO should have referred to the Departmental Valuation cell for valuing the property as provided in section 50C(2). Since the AO has ignored the objections of the assessee and failed to refer the valuation of property to the DVO, we are of the opinion that the case should be remitted back to the file of the A.O. to make reference to the DVO to determine the fair market value of the property for the purpose of computation of capital gains - Appeals filed by the revenue are allowed for statistical purposes.
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