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

2016 (9) TMI 645 - GUJARAT HIGH COURT

2016 (9) TMI 645 - GUJARAT HIGH COURT - [2016] 388 ITR 358 - Applicability of provisions of Sec. 50C(2)(b) - valuation of Stamp Valuation Authority - Held that:- Referring to the provisions of section 16A of the Wealth Tax Act, 1957 to the extent they are relevant for the present purpose, sub-section (1) of section 16A of the Wealth Tax Act provides for making reference to the Valuation Officer. Sub-sections (2) to (5) of section 16A provide for the mode and manner in which the value of an asset .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessing Officer is obliged to complete the assessment in conformity with the estimate made by the Valuation Officer pursuant to such reference made by him. In the facts of the present case, the Valuation Officer has estimated the value of the capital asset at a lower amount than the value adopted or assessed by the stamp valuation authority. In terms of sub-section (2) of section 50C of the Act, it is such valuation which is required to be taken into consideration for the purposes of assessmen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ), the appellant - revenue has challenged the order dated 18th November, 2015 passed by the Income Tax Appellate Tribunal, Ahmedabad B Bench (hereinafter referred to as the Tribunal ) in ITA No.1164/Ahd/2012 by proposing the following question, stated to be a substantial question of law:- [A] Whether on the facts and circumstances of the case and in law, the ITAT was right in ignoring the provisions of Sec. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee sold his lands bearing Survey Nos.602, 686, 688 and 689 at Adajan, Surat city for a consideration of ₹ 16,00,000/-. The Stamp Valuation Authority had assessed the stamp value of such property at ₹ 2,33,70,600/-. The Assessing Officer, therefore, reopened the assessment by recording the following reasons:- Information was received by this office that the land sold by the assessee at Adajan survey no.602, 686, 688 & 689 at Adajan, Surat City, for ₹ 16,00,000/- was value .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e Stamp Valuation Authority constitutes sufficient material evidence available on record as regards the value of the asset. He, accordingly, treated the difference between the stamp valuation of the land and the price at which the land was sold by the assessee as undisclosed income in the hands of the assessee (Rs.2,33,70,600 - ₹ 16,00,000 = ₹ 2,17,70,600/-). The assessee carried the matter in appeal before the Commissioner of Income Tax (Appeals) who found that at the request 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

value of stamp duty valuation when the matter had been referred by him to the DVO for valuation. According to the Commissioner (Appeals), section 50C of the Act is very clear that the value for the purpose of that section shall be the value as adopted by the Stamp Valuation Authority or the Valuation Officer whichever is lower. In the present case, the valuation of the DVO is ₹ 24,15,000/-. According to the provisions of the Act, the Assessing Officer cannot disregard the value determined .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to compute the capital gain taking the value given by the DVO which was less than the value adopted by the Stamp Valuation Authority. The Revenue carried the matter in appeal before the Tribunal which agreed with the view adopted by the Commissioner (Appeals) and dismissed the appeal. 4. Mr. Sudhir Mehta, learned senior standing counsel for the appellant referred to the provisions of section 50C of the Act to point out that under sub-section (2) thereof, the Assessing Officer can refer the valua .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h Court. It was pointed out that it is an admitted position that the respondent assessee had disputed the value adopted by the Stamp Valuation Authority in appeal before the higher authority. In these circumstances, it was not permissible to make a reference under sub-section (2) of section 50C to the Valuation Officer. It was submitted that in view of the fact that reference made to the DVO was not in consonance with the provisions of section 50C(2) of the Act, the Commissioner (Appeals) as wel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

without waiting for the report of the Departmental Valuation Officer, the Assessing Officer passed an assessment order by treating the difference between the stamp valuation of the land and the sale price disclosed by the assessee as the undisclosed income in the hands of the assessee. As can be seen from the findings recorded by the Commissioner (Appeals), pursuant to the reference made by the Assessing Officer, the Departmental Valuation Officer had valued the lands at ₹ 24,15,000/-. Ho .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sional authority was merely and only restricted for the purpose of stamp duty. It was contended by the assessee that despite the reference having been made to the Departmental Valuation Officer for valuation, the Assessing Officer without waiting for the report or either ignoring the report of the Departmental Valuation Officer had passed the assessment order and determined the sale price on the basis of the valuation made by the Stamp Valuation Authority. Thus, the Assessing Officer, despite be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 50C of the Act, once a reference is made to the Departmental Valuation Officer, the value for the purpose of the section shall be the value as adopted by the Stamp Valuation Authority or the DVO, whichever is lower. Having regard to the fact that the valuation in the present case as made by the Departmental Valuation Officer was ₹ 24,15,000/- which was much less than the valuation made by the Stamp Valuation Authority, the Commissioner (Appeals) directed the Assessing Officer to compute .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

full value of consideration in certain cases.-(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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al 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-sections (2), (3), (4), (5) and (6) of Section 16-A, clause (i) of sub-section (1) and sub-sections (6) and (7) of Section 23-A, sub-section (5) of Section 24, Section 34-AA, Section 35 and Section 37 of the Wealth Tax Act, 1957, shall, with necessary .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rity 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. 8. Thus, sub-section (1) of section 50C of the Act envisages a situation where the consideration received or accruing as a result of transfer by an assessee of a capital asset, being land or building or both, is less that the value adopted or assessed by any authority of the State Government (hereafter refe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the value adopted or assessed by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of the transfer; and where the value so adopted or assessed has not been disputed in any appeal or revision or no reference has been made before any other authority, court or High Court, then in such a situation the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer. Sub-section (2) of section 50C of the Act further .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ture it may be apposite to refer to the provisions of section 16A of the Wealth Tax Act, 1957 to the extent they are relevant for the present purpose. Sub-section (1) of section 16A of the Wealth Tax Act provides for making reference to the Valuation Officer. Sub-sections (2) to (5) of section 16A provide for the mode and manner in which the value of an asset is to be estimated. Sub-section (6) of section 16A of the Wealth Tax Act provides that on receipt of an order under sub-section (3) or sub .....

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