TMI Blog2019 (3) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... .A. No. 2156/HYD/2018, Stay Application No. 24/Hyd/2019 - - - Dated:- 27-2-2019 - Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member For the Assessee : Shri V. Siva Kumar, AR For the Revenue : Shri Satya Pinisetty, DR ORDER PER SMT. P. MADHAVI DEVI, J.M. : This is assessee s appeal for the AY. 2015-16, against the order of the Commissioner of Income Tax (Appeals)-5, Hyderabad, dated 27-09-2018. 2. Brief facts of the case are that, assessee an individual, filed her return of income for the AY. 2015-16 on 16-11-2015, declaring total income of ₹ 12,86,200/-, consisting of profit from business of ₹ 1,95,224/- and Long Term Capital Gain of ₹ 10,90,977/-. 3. Dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) should have directed the deletion of the addition of ₹ 1,21,63,200 made by the Assessing Officer. 4. For the above ground and such other grounds that may be urged at the time of hearing, the appellant prays that the appeal be allowed. The appellant craves leave to add to, amend or modify the above grounds of appeal either before or at the time of hearing of the appeal, if it is considered necessary . 4. Ld. Counsel for the assessee submitted that where the assessee objects to the valued adopted or assessed or assessable by the Stamp Valuation Officer u/s. 50C, the Assessing Officer is required to refer the matter to the Departmental Valuation Officer and if the Assessing Officer does not wish to refer to the DVO, he ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation 1.-For the purposes of this section, Valuation Officer shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). Explanation 2.-For the purposes of this section, the expression assessable means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer may refer the valuation of the capital asset to a Departmental Valuation Officer (DVO) and for that purpose, the procedure prescribed under the Wealth Tax Act are to be applied. In case of any such claim, the AO may rely on the report of registered valuer under Section 55-A of the Act and in such case it will not be necessary for him to refer the matter to the DVO. However, in any event, the AO has to record sufficient reasons. He has to record reasons for accepting the report of the approved valuer submitted by the assessee along with his claim/objection under Section 50-C(2) of the Act. If he does not accept the report, he has to record the reason for referring the matter to the DVO. The reasons in either case must have nexus with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal at Visakhapatnam in the case of R. Suhasini Bhimunipatnam Vs. DCIT (2013) [38 CCH 16] [Vizag-Trib] to remand the issue to the file of the Assessing Officer. The relevant paras are reproduced hereunder: 7.1 From the above, it is clear that assessee has made objections for adopting value of Stamp Valuation Authority, which exceeds FMV of the property on the date of transfer, AO may refer the valuation of the capital assets to a valuation officer. In the given case, AO has adopted the stamp valuation without referring to the valuation officer, even though, AO objected for adopting SRO value. In this connection, we refer to the decision of the coordinate bench of ITAT, Vishakhapatnam in the case of R. Suhasini Bheemunipatnam (su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l refer this matter of valuation in the light of sub-s.(2) of s. 50C to the DVO for determining the consideration of this plot sold by the assessee under s.50C. 9. Similar view was expressed by other coordinate benches relied on by the assessee in the course of arguments. Considering the provisions of subsection 2 of section 50 wherein it is very clearly mentioned that if the assessee claims before any assessing officer that the value adopted as assessed by stamp valuation authority exceeds the fair market value, the assessing officer may refer the valuation of the capital asset to a valuation officer and sub-section 3 provides that subject to the provisions contained in sub-section 2, only the value adopted or assessed by stamp valua ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
