TMI Blog2016 (6) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... of the same and in the interest of justice we consider it fit to restore the matter back to the file of the AO for reconsidering the claim of the assesee challenging the stamp duty valuation and further direct the AO to refer the matter to the D.V.O as prescribed under section 50C(2) of the Act. We direct that the assessee be given full opportunity to adduce all evidence in support of its contention and after giving adequate opportunity of hearing the matter be decided in accordance with law. - Decided in favour of assessee for statistical purposes. - ITA No.214/Ag/2014 - - - Dated:- 26-4-2016 - SHRI BHAVNESH SAINI , JUDICIAL MEMBER AND MS. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER For The Appellant : Sh. Dipendra Mohan, Ms. Prathna Jalan For The Respondent : Sh. Waseem Arshad ORDER PER ANNAPURNA MEHROTRA A.M. This appeal has been filed by the assessee against the order of Ld. CIT(A)- II, Agra dt. 12/12/2013. 2. The assessee has raised the following grounds of appeal: 1.That the Ld. CIT(A)-II, Agra has erred in law and on facts in treating the land under consideration as a residential land and not an agricultural land and adopting the valuation done ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NIL. Ld. AO further found that the assessee had not calculated the long term capital gain by applying the provision of Section 50C and substituting the value of sale consideration with the Stamp duty value of the property sold. He therefore issued show cause notice to the assessee. Due reply was filed by the assessee after considering which, the Ld. AO computed the capital gain of the assessee by substituting the sale consideration received by the assessee of ₹ 19,60,000/- by the stamp duty valuation of the property at ₹ 60,40,000/- and further after allowing deduction under section 54EC of ₹ 16,00,000/-. The long term capital gain earned by the assessee was therefore calculated at ₹ 46,00,424/-. Further during assessment proceeding the assessee had claimed deduction under section 54B of ₹ 3,36,300/- and under section 54F of ₹ 39,14,000/- also against the capital gain earned by it, which was denied by the AO for the reason that since the land sold was not agricultural, deduction under section 54B was not available and since no detail and evidence of investment made in residential house during the impugned AY were filed by the assessee, the deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had accepted substitution of the stamp duty valuation as the value of consideration for the purpose of calculating capital gain, during the assessment proceeding and therefore it was debarred from claiming otherwise. Ld. DR referred to the show cause notice issued to the assessee during assessment proceeding asking the assessee as to why the stamp duty value of the property be not substituted with the sale consideration received by the assessee for the purpose of calculating the capital gain earned by the assessee, reproduced at page no. 11 point no. 4.3 of the CIT(A) order. Ld. DR thereafter drew our attention to the reply filed by the assessee to the above mentioned show cause notice reproduced at page number 13 of the CIT(A) order wherein as per the Ld. DR the assessee accepted the stamp duty value of the land sold to be taken as a sale consideration for the purpose of calculating the capital gain earned. Ld. DR therefore stated that the assessee could not now claim that he had disputed the adoption of the stamp duty valuation of the property during the assessment proceeding. Ld. DR therefore stated that there was no case for the provision of section 50C(2) to come into play ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt, The Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provision of sub-sections(2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections(6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation 1. For the purpose of this section, Valuation Officer shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). Explanation 2- For the purposes of this section, the expression assessable means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty. A bare perusal of the above provision reveals that in case of transfer of a capital a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above evidence was called for by the Ld. CIT(A) from the AO who submitted a letter from the Asst. Town Planner Jhansi dt. 11/11/2013, stating the impugned land to be residential and filing a letter from ADM(Finance) Jhansi dt. 13/11/2013 was also placed confirming the stamp duy valuation as per residential rates which is given at Page 21 of CIT(A) order. The assessee in reply challenged the above by stating that in response to a RTI application filed the Assistant Town Planner had in his letter dt. 04/12/2013 stated that the use of the land was Residential 24 meter proposed road and park . The assessee therefore again challenged the valuation adopted by the AO. It is amply clear from the above that even before the Ld. CIT(A) the assesee had not accepted the stamp duty valuation adopted by the AO. 10. Before us Ld. AR submitted that the market value of the impugned property is less than what is assumed by the authorities below. Ld. AR contended that the impugned land was agricultural when sold by the assessee and it was only later on that it was converted to residential. Moreover Ld. AR stated that the land was under dispute and civil litigation was in progress. Documents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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