GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 980 - GUJARAT HIGH COURT

2015 (12) TMI 980 - GUJARAT HIGH COURT - TMI - Capital gain computation - Whether ITAT was right in ignoring the fact that as per provisions of section 50-C (2)(b) the matter should not have been referred by CIT(A) for valuation as the assessee had already challenged the Juntry Value assessable by the Stamp Valuation authority, before the Nayab Collector and in that case, further reference to valuation is prohibited as per the Act and value determined by Nayab Collector has to be adopted as full .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sed by the stamp valuation authority exceeds the fair market value as on the date of transfer upon which the Assessing Officer would refer the valuation of the capital asset to the Valuation Officer. Under sub-section (3) of section 50-C, where the value ascertained by the Valuation Officer exceeds the value adopted, assessed or assessable by the stamp valuation authority, the latter, i.e. the valuation of the stamp valuation authority, would be taken as the full value of the consideration for t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uty Authority, it would be the valuation of such stamp duty authority which would prevail for the purpose of computing capital gain. The Revenue intends to contend to the contrary which is simply not born out from the statutory provisions noticed. There is no error in the view taken by the Tribunal - Tax Appeal No. 897 of 2015 - Dated:- 1-12-2015 - Akil Kureshi And Mohinder Pal, JJ. For the Appellant : Mr Sudhir M Mehta, Adv JUDGMENT ( Per : Honourable Mr. Justice Akil Kureshi ) 1. This tax appe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Nayab Collector and in that case, further reference to valuation is prohibited as per the Act and value determined by Nayab Collector has to be adopted as full value of consideration ?" 2. The issue pertains to valuation of immovable property sold by the assessee during the previous year, relevant assessment year 2007-2008, for sale consideration of ₹ 47 lakhs. Sub-Registrar of Stamp Duty, however, valued the asset in question at ₹ 3.4 crore (rounded off). Assessee carried this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

CIT(A)accepted such valuation for the purpose of capital gain in the hands of the assessee and granted relief accordingly. The Department, however, carried the issue in appeal before the Tribunal contending that the valuation of the Deputy Collector, Stamp Duties should be adopted. The Tribunal rejected the appeal of the Revenue in the following terms: "6. The contention of the DR is that where the value of the property made by the stamp valuation authority is higher than the value of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the case of ITO v. Shri Bhartbhai Kalyanbhai Malvia in ITA No.2227/Ahd/2011 order dated 10.4.2015 wherein the Tribunal at para-19 held as under: "10. We find that section 50C(2) provides that where the assessee claimed before the AO that the value adopted or assessed by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property, on the date of transfer, the AO may refer the valuation of the capital asset to the valuation officer, in such a situation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ale consideration of the property for computing the capital gains in the hands of the assessee. Therefore, we dismiss this ground of appeal of the Revenue." 4. Having heard learned counsel Mr.Sudhir Mehta for the Revenue and having perused the documents on record, we see no error in the decision of the Tribunal. Section 50-C of the Income-tax Act pertains to special provisions for full value of consideration in certain cases, relevant portion of which reads as under: "50-C. (1) Where t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed or accruing as a result of such transfer. (2) Without prejudice to the provisions of sub-section (1), where (a) the assessee claims before any Assessing Officer that the value adopted or assessed by the stamp valuation authority under subsection exceeds the fair market value of the property as on the date of transfer (b) the value so adopted or assessed by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erence as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer." .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version