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TMI Blog2020 (6) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... r no.9(old site no.20) Thimma Reddy Colony, Kodihalli Village, Varthur Hobli, Bangalore South Taluk, (hereinafter referred to as 'the property') under a sale deed dated 08-04-2015. The sale consideration as per sale deed that was received by the Assessee was a sum of Rs. 1.30 Crores. The value of the property for the purpose of stamp duty was a sum of Rs. 2,09,10,000/-. The AO was of the view that the capital gain had to be computed by substituting the fullm value of consideration received on transfer by the value adopted by the state government for the purpose of stamp duty because the value so adopted by state government was higher than the full value of consideration received by the Assessee on sale of the property. The AO accordingly, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g system through a bank account, on or before the date of the agreement for transfer: 75a[Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration.] (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted or assessed or assessable by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed or assessable by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer. 4. In the order of assessment dated 28.12,.2018, the AO also made observation in the form of a note to the Assessment order that his order of Assessment will be subject to review or rectification on receipt of valuation report from the District Valuation Officer (DVO), Bangalore. 5. Aggrieved by the order of the AO dated 28-12-2018, the Assessee filed appeal before the ld. CIT(A) on 24-01-2019. Pending disposal of the Appeal, the DVO to whom the AO had made a reference u/s 50C(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2)(b) of the Act, reference to the valuation by the AO to the DVO can be made only when the stamp duty valuation had not been disputed in appeal before the concerned authorities. Since the buyer of the property from the Assessee had disputed the valuation therer could not have been a valid reference to the DVO by the AO u/s 50C(2) of the Act and therefore, the report of the DVO should also be ignored. The CIT(A) found no merit regarding the other contentions of the AO and no other grounds to interfere with the order of the AO and accordingly confirmed the order of AO. 7. Aggrieved by the order of the ld.CIT(A) the Assessee had preferred the present appeal before the Tribunal. The only ground that was pressed for adjudication before us was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities had been disputed in an appeal revision before an authority as contemplated under Sec.50C(2)(b) of the Act. Apart from the above the AO made reference to the DVO before conclusion of the Assessment proceedings i.e., before 28.12.2018 on which date he passed the order of assessment. The letter of the purchaser of the property to the Inspector General of Registration and Controller of Stamps is dated 26.2.2019 which is after the date of reference to DVO by the AO. Thus as on the date on which the AO referred the question of valuation of the property to the DVO, there was no bar in terms of Sec.50C(2)(b) of the Act. Therefore, we are of the view that the valuation report given by the DVO cannot be ignored. Since the DVO himself valued ..... X X X X Extracts X X X X X X X X Extracts X X X X
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