TMI Blog2017 (5) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... en properly verified by the learned CIT(A) while holding that the provisions of Section 50C of the Act are not applicable in the case, we feel it appropriate to restore the issue to the file of the Assessing Officer to examine the issue afresh. - Decided in favour of assessee for statistical purposes. - ITA No. 1788/Del/2011 - - - Dated:- 19-5-2017 - SH. H.S. SIDHU, JUDICIAL MEMBER, AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : S/sh. R.S. Singhvi and Satyajit Goel, Adv. For The Respondent : Sh. Umesh Chand Dubey, Sr.DR ORDER Per O.P. KANT, A.M.: This appeal by the assessee is directed against the order dated 24.02.2011of learned CIT(A)-VIII, New Delhi, raising the following grounds of appeal: 1. The lower authorities had erred in not appreciating that the plot of land No. A-2/204, Paschim Vihar, Delhi measuring 167 sq. mtrs. allotted by DDA in Public Auction on 11.3.2002 was not comparable to the first floor of house No. 37, Punjabi Bagh (West), New Delhi especially when the ground floor and the second floor of the said property belonged to others. 2. The lower authorities had erred in not appreciating that the onethird share of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wife for ₹ 19 lakhs on 16.11.1999. The orders of the lower authorities being arbitrary, erroneous and deserve to be modified. The same may kindly be modified. 2. Briefly stated facts of the case are that the assessee was the owner of 1/3rd share of a residential house alongwith his wife, who was having 2/3rd share. The property was situated at first floor, 37, West Avenue, Punjabi Bagh New Delhi. The ground floor and second floor of the said building was owned by unrelated persons. Subsequently, the assessee and his wife sold the said property on 15.06.2005 and shown sale consideration of ₹ 22 lakhs. In the return of income for the assessment year under consideration, the assessee declared a long term capital loss of ₹ 1,40,569/- pertaining to sale of his share in the property. In the course of assessment proceedings, the Assessing Officer conducted inquiries and found that the sale consideration declared by the assessee and his wife in the return of income was very low as compared to prevailing market rate in the locality on the date of the sale. The Assessing Officer referred the matter to the valuation cell of the department under section 55A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower authorities and submitted that the property was referred for valuation in accordance with the provisions of the Act and therefore, the Assessing Officer was justified in substituting the fair market value of the property in place of full value of consideration, as provided in Section 50C of the Act in case of capital gain assets being land or building or both. 5. We have heard the rival submissions and perused the relevant material on record. The issue in dispute in the case is whether the fair market value of the property can be substituted in place of full value of consideration in section 48 of the Act. In Section 48 of the Act, it is specified that income under the head capital gains shall be computed by deducting from the full value of consideration received or accruing as a result of transfer of the capital asset, the amount of expenditure incurred in connection with transfer and cost of acquisition of the asset including cost of any employment of the asset. Thus, for the purpose of computation of capital gains full value of the consideration received/accrued as a result of transfer of the capital asset is required to be considered. However, in case of specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer.] (2) Without prejudice to the provisions of sub-section (1), where - (a) the assessee claims before any Assessing Officer that the value adopted or assessed or assessable by the stamp valuation authority under sub-section (1) exceeds the fair market value of the property as on the date of transfer; (b) the value so adopted or assessed or assessable by the stamp valuation authority under sub-section (1) has not been disputed in any appeal 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 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le transaction was registered by the stamp valuation authorities. In other words, if the property in question has been sold through registered sale deed and the value adopted or assessed by the stamp valuation authority is higher than the value declared by the assessee in the return of income, the provisions of Section 50C of the Act are clearly applicable. If the sale transaction in question is not registered with stamp value authorities, then full value of consideration has to be accepted as declared by the assessee following the decision of the Hon ble High Court of Punjab Haryana in the case of Quark Media House (India) Pvt. Ltd. (supra.). Since this issue has not been properly verified by the learned CIT(A) while holding that the provisions of Section 50C of the Act are not applicable in the case, in the circumstances, we feel it appropriate to restore the issue to the file of the Assessing Officer to examine the applicability of Section 50C of the Act with regard to transfer of the property in question and decide the issue afresh in accordance with law. The grounds of the appeal are accordingly allowed for statistical purposes. 9. In the result, the appeal of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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