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2015 (12) TMI 610 - ITAT MUMBAITaxing of capital gain by invoking the provisions of section 50C on the sales of property - Held that:- This is the second round of proceedings passed in pursuance of direction given by the Tribunal, wherein it was directed that the Assessing Officer will process the assessee’s claim u/s 50C(2)(a) and referred the matter to the DVO for ascertaining the fair market value. In pursuance thereof, the assessing officer had made the reference to the DVO who has valued the property at a higher value at ₹ 23,27,000/- as against the stamp duty valuation of ₹ 20,06,500/-. Section 50C is a deeming provision where fair market value has to be deemed at the value adopted by the stamp valuation authority. However, such a deeming provision will not apply, if the assessee claims that the value adopted or assessed by the stamp valuation authority exceeds the fair market value of the property as on the date of transfer. In case of such a claim, Assessing Officer has to refer the matter to the Valuation Cell and in such cases, the Assessing Officer is bound by such a valuation. Here in this case, since value adopted by the DVO is more than the stamp valuation, therefore, the Assessing Officer had rightly adopted the FMV as per the stamp valuation authority. To wriggle out from such a situation here in this case, the assessee should have rebutted the entire DVO’s report before the CIT(A) by evidence and proper material as to how and why the DVO’s report cannot be relied upon and the assessee’s sale value is actually the fair market value. Here such an exercise has not been done by the assessee. Accordingly, the order of the CIT(A) confirming the fair market value as per section 50C is affirmed. - Decided against assessee.
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