TMI Blog2017 (5) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... was on the higher side. If after such reference, the value fixed by the stamp valuation authorities is still to adopted, ignoring the lower value fixed by the DVO then the purpose of reference to the DVO itself is lost. In such circumstances, no circular of the CBDT can come to the aid of the Revenue. Once a valuation is given by the Valuation Officer in accordance with Sec. 50C of the Act, then such value alone can be adopted where it is lower than the value assessed by the stamp valuation authorities as held by Hon’ble Gujarat High Court in the case of Principal Commissioner of Income Tax vs. Ravjibhai Nagjibhai Thesia [2016 (9) TMI 645 - GUJARAT HIGH COURT]. - Decided against revenue - I.T.A. No. 528/Mds/2017 - - - Dated:- 3-5-2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and stamp duty authorities had fixed the value of the property sold at @1,00,29,971/- whereas ld. Assessing Officer had accepted the sale consideration of @25,00,000/- shown by the assessee while computing the capital gains. Thereafter ld. Assessing Officer based upon the direction of the ld. Commissioner of Income Tax (Appeals) completed the assessment taking the sale consideration as @1,00,29,971/- fixed by the stamp duty authorities and recomputing the long term capital gains. 3. Assessee thereupon filed an appeal before ld. Commissioner of Income Tax (Appeals). Contention of the assessee was that long term capital gains which arose on sale of 1.46 acres of land to M/s. Shingvi Paper Products Pvt Ltd was correctly shown by it, based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and perused the orders of the authorities below. In this case, there is no dispute that valuation of the property which was sold by the assessee on which long term capital gains was computed was referred to the ld. DVO. It may be true that such reference was made by the ld. Assessing Officer on the directions of the ld. Commissioner of Income Tax (Appeals). But it is not disputed by the Revenue that Valuation Officer had given a report fixing the value of the property sold by the assessee at @31,48,000/-. The valuation shown by the assessee in the sale deed was @25,00,000/-. It may be true that the value fixed by the stamp duty authorities for the property was @1,00,29,971/-. In our opinion once a reference was made to ld. DVO, invoking se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of such transfer. In such a situation, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. Sub-section (2) of section 50C of the Act, however, without prejudice to the provisions of sub-section (1) provides for a situation where the assessee claims before the Assessing Officer that 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, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital asset, the 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 subsection (2) of section 50C of the Act, it is such valuation which is required to be taken into consideration for the purposes of assessment. In the light of the above discussion, while not agreeing fully with the reasoning adopted by the Commissioner (Appeals), in the facts and circumstances of this case, this court is in agreement with the final conclusion arrived a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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