2023 (9) TMI 798 - ITAT RAIPUR

Addition u/s 56(2)(vii)(b)(ii) - difference in the value that was adopted by the stamp valuation authority for payment of stamp duty as against the value for which the sale transaction was executed - declining reference by the A.O to the Valuation Cell for determining the fair market value (FMV) of the said property - HELD THAT:- A conjoint reading of Section 56(2)(vii) r.w.s. 50C(2)(b), therein reveals that such right is available only where the value so adopted or assessed or assessable by the stamp valuation authority for the purpose of payment of stamp duty in respect of the transfer transaction had, inter alia, not been disputed by the assessee in any appeal or revision and no reference has been made before any other authority, court or the High Court.

As in the present case, the assessee had disputed the stamp value of the property in question that was adopted by the stamp valuation authority, i.e. Collector of Stamp, Bastar (C.G.) at Rs. 5,43,68,144/-, and he had refixed/reduced the market value to Rs. 4,34,94,500/- as against the aforesaid market value of Rs. 5,43,68,100/-, therefore, as per the aforesaid mandate of law, the assessee was precluded from seeking any reference by the A.O for valuation of the property by the valuation cell.

We consider that as no infirmity emerges from the declining of the assessee’s request for making a reference by the A.O. for the valuation of the property by the valuation cell u/s. 56(2)(vii)(b)(ii) r.w.s. 50C(2) of the Act; therefore, the order passed by the CIT(Appeals) is upheld. Decided against assessee.