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Asst. Commissioner of Income-tax, Circle-12, Ahmedabad Versus M/s. Akash Association 1 and Vica-Versa

2016 (9) TMI 1204 - ITAT AHMEDABAD

Capital Gain on sale of plot of land - reference made to the DVO u/s. 55A - whether the value of sale shown by the assessee is on the lower side ? - Held that:- It is an undisputed fact that the A.O. has made a reference u/s. 55A of the Act to the DVO to determine the correct market value as on the date of the transfer. Section 55A, permits reference to DVO by the Assessing Officer under certain circumstances. Such reference, however, is with a view to ascertaining the fair market value of capit .....

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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 present case, we find that the A.O. has made reference u/s. 55A for the determination of market value for the purposes of the computation of ca .....

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MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER For The Appellant : Shri Vimlendu Verma, CIT/DR For The Respondent : Shri Tej Shah, A.R. ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. ITA No. 2050/Ahd/2013 & C.O. No. 68/Ahd/2016 are appeal and Cross Objection by the assessee directed against the order of Ld. CIT(A)-XX, Ahmedabad dated 01.05.2013 pertaining to A.Y. 2009-10. 2. The sole grievance of the revenue is that the ld. CIT(A) erred in deleting the addition of ₹ 78,75,2511/- made .....

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sessee 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 t .....

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inion that the A.O. has not brought on record any other evidence to show that the assessee has received consideration over and above the declared consideration. Accordingly, the ld. CIT(A) held that the fair market value cannot be adopted as full value of consideration to determine the capital gains. 8. It is an undisputed fact that the A.O. has made a reference u/s. 55A of the Act to the DVO to determine the correct market value as on the date of the transfer. Section 55A, permits reference to .....

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ruing as result of transfer of the capital asset the 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 acquisi .....

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as on the date of the sale as in the present case would be wholly redundant. 11. 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 .....

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ujarat in the case of Gauranginiben S. Shodhan 367 ITR 238 wherein the Hon ble High Court has held as under:- 11. Taking the question of ascertaining the fair market value on the date of sale, we notice that section 48, which is also contained in chapter IV of the Act 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 u .....

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t of the transfer of the capital asset as reduced by expenditure mentioned therein and the cost of acquisition of the asset. Section 55 A, as we have noticed, 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 received or accruing as a result of the transfer of the capital asset for the purposes of s .....

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