TMI Blog2015 (9) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... ructed in law, the assessing officer, discharging a quasi judicial function, has the bounden duty to act fairly and to give a fair treatment by giving him an option to follow the course provided by law. The assessee has not disputed the valuation of the stamp authority. It is very unfortunate that the AO has worked out the capital gain tax liability including the DVO report which is binding to the assessee. From the above fact and legal provision laid down by Hon’ble Jurisdictional High Court in the case of Sunil Kumar Agarwal [2014 (6) TMI 13 - CALCUTTA HIGH COURT] , we are of the view that the value of the property estimated by DVO as on the date of sale is to be taken as final sale consideration for the purpose of computation of capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiny assessment, the AO referred the matter to the DVO for the valuation purpose. As per the DVO the value of the property on the date of transfer was ₹ 26882444.00 and the value adopted by the stamp duty authorities was ₹ 27677138.00. However, the ld. AO has worked out the tax liability under the head capital gain by taking the sale consideration as stamp valuation of the property in terms of section 50C of the Act and raised the demand to the assessee accordingly. Aggrieved, the assesee preferred appeal before the ld. CIT(A), who disallowed the addition made by the ld. AO by directing the AO to take the valuation of the Departmental Valuation Officer in Toto and calculate the capital gain accordingly. Aggrieved, the reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds as recorded by the registrar of property for the purpose of stamp duty without appreciating the valuation done by the DVO. Section 50C reads as under :- 50C (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice to the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority shall be taken as the full value of the consideration received or accruing as a result of the transfer. In the case of Sunil Kumar Agarwal Vs. CIT ITA 221 of 2013 GA No.3686 of 2013 High Court of Calcutta, it has been held that the Valuation by the departmental valuation officer, contemplated under section 50C, is required to avoid miscarriage of justice. The legislature did not intend that the capital gain should be fixed merely on the basis of the valuation to be made by the district sub registrar for the purpose of the stamp duty. The legislature has taken care to provide adequate machinery to give fair treatment to the citizen/Tax payer. There is no reason why the machinery provided by the legislature should not be used a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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