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2022 (7) TMI 1304 - AT - Income TaxCapital gain computation - Adoption of the Stamp Duty Valuation as full value consideration as per section 50C - AO has made an addition u/s 50C to the short term capital gain by adopting the Stamp Duty Valuation as full value consideration as against the sale consideration shown by the assessee - HELD THAT:- It is a matter of fact that the Stamp Duty authority has valued the property in question at Rs. 16,88,000/- on 27th February, 2015 and then within a period of one month, 10% of the said land was valued by the Stamp Duty authority at Rs. 28,05,000/- which shows that there is a steep hike in the valuation for the purpose of Stamp Duty and that too within a period of one month. Thus, such an enhancement / increase in the Stamp Duty Valuation is possible only when some abnormal or inordinary event happened. All these facts explained by the assessee before the Assessing Officer which lead to the fair inference that the assessee has seriously objected to the adoption of Stamp Duty Valuation as full value consideration in terms of section 50C(2) of the Income Tax Act and consequently the AO is duty bound to refer the valuation of the property in question to the DVO for determination of fair market value of the property. Only after getting the fair market value determined by the DVO, the Assessing Officer ought to have computed the capital gain and consequential addition, if any. Thus the impugned order is set aside and the matter is remanded to the record of the Assessing Officer to redo computation of the capital gain after referring valuation of the property to the DVO for determination of the fair market value, as per section 50C(2) of the Income Tax Act. Needless to say, the assessee be given an appropriate opportunity of hearing before passing the fresh order. Appeal of the assessee is allowed for statistical purposes
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