Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2008 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (11) TMI 300 - AT - Income TaxCapital Gains - valuation u/s 50C - substitution of valuation as per stamp valuation authority (SVA) in place of sale consideration shown by the assessee and worked out capital gains. Assessee contended that without referring the matter to the DVO and considering the market value of the land, the AO could not have adopted the valuation as per SVA. HELD THAT:- Once s. 45 comes into operation as a result of transfer of capital asset resulting into profits and gains the question of determining net consideration for the purposes of computing capital gains arise thereafter. This is provided in s. 48. It enables the AO to reduce expenditure incurred wholly and exclusively in connection with transfer of capital asset, cost of acquisition of the asset and cost of any improvement thereto while computing capital gains from the full value of consideration received or accruing to the assessee as a result of transfer. This full value of consideration is deemed to be the valuation done by SVA in case declared sale consideration is less than valuation made by SVA. Sec. 50C thus creates a legal fiction and its effect has to be given to the extent fiction is created but not more. Also, we notice that s. 54F has been placed subsequently to ss. 45, 48 and 50C clearly indicating that legislature intended to apply the provisions of s. 54F and alike sections subsequent to application of ss. 45, 48 and 50C unless so expressly provided in subsequent sections. There is no reason to take a different view than what is expressed in Jitendra Mohan Saxena's case [2007 (7) TMI 361 - ITAT LUCKNOW-B]. In the present case, sale consideration shown by the assessee in respect of four plots as mentioned above is less than the valuation done by Stamp Valuation Officer and there is no claim by the assessee before the AO that such valuation by SVA is less (sic-more) than the fair market value of the plots under transfer, the AO has no option but to adopt the valuation made by SVA as full value of consideration in place of sale consideration shown by the assessee and calculate chargeable capital gains accordingly. As a result, we do not find any reason to interfere in the order of the CIT(A) and the same is, therefore, confirmed. In the result, the appeal filed by the assessee is dismissed.
|