TMI Blog2016 (9) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... ining the fair market value of the capital asset as on the date of sale. We find that Section 50C provides for special provision for full value of consideration in certain cases. The said section provides a deeming fiction under which consideration received or accruing as a result of transfer of a capital asset can be replaced by the value adopted or assessed by stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer. In the said Section 50C of the Act, Sub-section (2) permits the assessee to dispute such valuation adopted by the Stamp Valuation Authority and in such a case, it is open for the Assessing Officer to refer the valuation of the capital asset to a Valuation Officer. However, in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.25 crores and the sale was made vide Banakhat dated 2.12.2008 and no final document of sale deed was executed. 4. From the sale consideration of ₹ 6.25 crores, the assessee has deducted original purchase price and the cost of improvement by appropriate indexation. 5. The A.O. was of the opinion that considering the rising market prices, the value of sale shown by the assessee is on the lower side and accordingly made a reference u/s. 55A of the Act to the DVO for the purpose of the determination of correct market value as on the date of transfer as per Banakhat. The Valuation Officer vide report dated 15.12.2011 submitted the Valuation Report and estimated the sale value at ₹ 13,33,63,000/-. 6. The A.O. recomputed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he following amounts, namely:- 1. Expenditure incurred wholly and exclusively in connection with such transfer. 2. The cost of acquisition of the asset and the cost of any improvement thereto. 10. A perusal of the aforementioned section shows that the main thrust of Section 48 is the full value of consideration received or accruing as a result of the transfer of the capital asset as reduced by expenditure mentioned therein and the cost of acquisition of the asset. Section 55A, refers to the reference to DVO for ascertaining the fair market value of a capital asset. Such ascertainment of fair market value with the aid of the DVO s report would have no relevance for the purpose of determining full value of consideration rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t pertains to method of computation of capital gain. A detailed mechanism has been provided for such computation of the income chargeable under the head Capital Gains . It provides, inter alia, that the income chargeable under the Head Capital Gains , shall be computed by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset, the amounts mentioned therein that is the expenditure incurred wholly and exclusively in connection with such transfer and the cost of acquisition of the asset and the cost of any improvement thereto. Main thrust of section 48 of the Act, therefore, is the full value of consideration received or accruing as a result of the transfer of the capital asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Delhi High Court in the case of CIT v. Smt. Nilofer I. Singh [2009].309 ITR 233 was also brought to our notice; wherein, relying on the decision of George Henderson Co. Ltd. (supra) and Gillanders Arbuthnot Co. (supra), the Division Bench observed that expression full value of consideration used in Section 48 of the Act does not have reference to the market value but only to the consideration referred to in the sale deed as sale particulars of the assets which have been transferred. 14. Considering the facts in totality, in the light of the decision of the Hon ble Jurisdictional High Court (supra), we hold that the value adopted as per the DVO s report is uncalled for and the A.O. is directed to accept the sale consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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