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2015 (9) TMI 1435 - ITAT KOLKATA

2015 (9) TMI 1435 - ITAT KOLKATA - TMI - Valuation of the DVO in toto accepted ignoring the relevant provisions of Section 50C of the Act - Held that:- 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 leg .....

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as 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 capital gain under section 50C of the Act. Accordingl .....

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T(A)-XVI/Wd-29(3)/2011-12 dated 21.11.2012 for A.Y.2009-10. Assessment was framed u/s 143(3) of the Income tax Act, 1961 (hereinafter referred to as the Act ) vide order dated 16.11.2011. 2. The only issue raised by the revenue is that the ld. CIT(A) has erred in law as well as on fact in directing the AO to accept the valuation of the DVO in toto ignoring the relevant provisions of Section 50C of the Act. 3. Briefly stated facts are that the assessee is an individual and has income from capital .....

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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. .....

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s of the case the Ld. CIT(Appeal) erred in law as well as on facts in directing the AO to accept the valuation of the DVO in toto ignoring the fact that the assessee himself had accepted the valuation made by the Stamp Valuation Authority and declared the same in his return of income filed. 4. Shri M.K.Biswas, JCIT, Sr.DR, the ld. DR appeared on behalf of the revenue and Shri Manoj Kataruka, Advocate appeared on behalf of the assessee. 5. The ld. DR relied on the order of the ld. AO. 6. The ld. .....

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372 ITR 83 (Cal). 7. We have heard the rival submissions and perused the materials available on record. The AO has taken the sale proceeds 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 .....

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the stamp valuation authority under sub-section (1) 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 any other authority, court or the High Court, The Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub .....

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r shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). (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. In the case of Sunil Kumar Aga .....

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