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2018 (10) TMI 500 - AT - Income TaxCapital gain computation - Valuation as per stamp value authorities u/s 50C - AO instead of referring the same to the DVO adopted the circle rate valuation - Held that:- AO had not discussed anything about the valuation report filed by the assessee during the course of assessment proceedings. The representations filed by the trade organization before the then Chief Minister of Delhi about the arbitrary adoption of circle rate by the stamp valuation authority was also ignored by the Assessing Officer and instead of referring the matter to the DVO he made addition being the difference between the circle rate and actual sale consideration. When the assessee submitted various details including two sale instances below the circle rate in the same area, the ld. CIT(A) called for a remand report from the Assessing Officer and the Assessing Officer at that time also did not refer the matter to the DVO. Therefore, under these circumstances, the decision of the Hon’ble Delhi High Court in the case of Jansampark Advertising and Marketing Ltd. (2015 (3) TMI 410 - DELHI HIGH COURT) as relied on by the Revenue in the grounds of appeal will not be applicable to the facts of the present case. We find identical issue had come up before the Tribunal in the case of Aditya Narain Verma (HUF) (2017 (6) TMI 542 - ITAT DELHI) Tribunal after considering the various submissions made by the assessee rejected such request of the Revenue as held Assessing Officer should have referred the valuation of the capital asset to a valuation officer instead of adopting the value taken by the state authority for the purpose of stamp duty. The very purpose of the Legislature behind the provisions laid down under sub section (2) to section 50C is that a valuation officer is an expert of the subject for such valuation and is certainly in a better position than the Assessing Officer to determine the valuation. Thus, non-compliance of the provisions laid down under sub section (2) by the Assessing Officer cannot be held valid and justified - decided against revenue
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