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2020 (6) TMI 667 - AT - Income TaxLTCG - valuation of the property to the DVO - AO was of the view that the capital gain had to be computed by substituting the fullm value of consideration received on transfer by the value adopted by the state government for the purpose of stamp duty - HELD THAT:- Purchaser of the property filed a letter before the Inspector General of Registration and Controller of Stamps, would not be sufficient to conclude that the value adopted for the purpose of stamp duty by the registering authorities had been disputed in an appeal revision before an authority as contemplated under Sec.50C(2)(b) of the Act. Apart from the above the AO made reference to the DVO before conclusion of the Assessment proceedings i.e., before 28.12.2018 on which date he passed the order of assessment. The letter of the purchaser of the property to the Inspector General of Registration and Controller of Stamps is dated 26.2.2019 which is after the date of reference to DVO by the AO. Thus as on the date on which the AO referred the question of valuation of the property to the DVO, there was no bar in terms of Sec.50C(2)(b) of the Act. Therefore, we are of the view that the valuation report given by the DVO cannot be ignored. Since the DVO himself valued the property which is less than the value adopted for the purpose of stamp duty and registration, the same should be adopted for the purpose of determining the full value of consideration received on transfer of capital asset for computing LTCG as laid down in Sec.50C(3) - Appeal of the assessee is partly allowed.
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