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TMI Blog2017 (11) TMI 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... d short-term capital gains. The assessee has sold his property admeasuring 16622.92 sq. mtrs being his share of 53% in property admeasuring 3.12 hectares located at Sachin area of Surat for Rs. 52,36,000 as against which cost of acquisition and stamp duty of Rs. 9,74,888 [6,42,943+3,31,9450] being his 53% share in said property has been claimed. Consequently, short-term capital gains of Rs. 42,61,112[ 52,36,000- 9,47,888] has been offered for tax. The assessee with his share of 53% in property has along with Shri Hemendra Chhaganlal Patel (17% share), Shri Arun Chhaganlal Patel (30% share) purchased the property on 19.10.2005 by paying an amount of Rs. 11 lacs paying in cash during the period from 09.08.2005 to 18.10.2005, (assessee paid Rs. 5,83,000) from Shri Mukesh Desai. The AO noticed that the sale price of land sold comes to Rs. 314 per sq. mtr The sale document was executed on 29.03.2008 as per wording of deed, but it was registered on 25.07.2008. As per the sale deed the assessee had received payments by cheque from 24.03.2008 to 25.03.2008 by six cheques all drawn of HDFC bank Parley Point. However, on verification the AO found that said cheques were cleared in the month o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp duty valuation at Rs.3,82,32,716 and after allowing deduction of Rs. 6,42,943, being cost of acquisition and improvement, worked out short-term capital gains of Rs. 3,72,57,828 and added the same to total income. 4. Being aggrieved, the assessee filed an appeal before the CIT (A). During the course of appellate proceedings, the CIT (A) has called for remand report from the AO on various aspects of the case. The Id. CIT (A) held that it is not a case where section 50C can be invoked as the valuation done by the Stamp Duty Authorities is same as the agreement value. The provision of section 50C can be invoked if Stamp Duty Authorities valuation is more than the agreement value. Therefore, the AO is not entitled to substitute his own valuation on the basis of some information obtained from Stamp Duty Authorities in place of valuation adopted by the Stamp Duty Authorities. If the AO feels that the valuation adopted by the Stamp Duty Authorities is on lower side, he can communicate the same to Stamp Duty Authorities but deeming provisions of section 50(1) does not give him power to do the valuation himself. The CIT (A) also observed that reference made by the AO to Valuation Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 50C is effected from 01.10.2009 in which word "or assessed or assessable " is inserted . Hence, it was contended that the value assessed by the Stamp Duty Authorities is to be taken for the purpose of section 50C of the Act for the assessment year under consideration. Since in this case, the sale consideration shown in agreement to sale is same as adopted and assessed by the Stamp Duty Authorities, therefore, the provision of section 50C are not applicable. Therefore, the findings of Id. CIT (A) are correct and same may be upheld. 7. We have heard the rival submissions of both the parties and perused the material available on record. We find that the assessee has entered in to agreement to sale on 29.03.2008 (Paper book page no. 18 to 52) and in lieu of that the assessee has taken six cheques drawn of HDFC Bank dated 24.03.2008 and 25.03.2008 for an amount of Rs. 52,36,000, i.e. the consideration as mentioned in the agreement to sale. All these cheque were cleared in the month of September 2008. This deed was registered 25.07.2008 (PB-51-52) accepting the sale consideration of Rs. 52,36,000 shown in the agreement to sale dtd. 29.03.2008 and the Stamp Duty Authorities h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se under appeal before us, there is no dispute with regard to item "(a)". The dispute is with regard to item "(b)". The Assessing Officer has called for the information from the stamp valuation authority with regard to various rates which are to be adopted for the purpose of payment of stamp duty in respect of transfer of various types of land in various area. On the basis of such information, he worked out the value of the asset which should be adopted or assessed for the purpose of stamp duty and then he has taken the same value for the purpose of computing the capital gain. In our opinion, this exercise made by the Assessing Officer is to be made by the stamp valuation authority and not the Assessing Officer. The Assessing Officer has to consider the value adopted or assessed by the stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer. The learned counsel for the assessee has made a statement at the time of hearing that in respect of transfer of asset during the year under consideration, the value disclosed by the assessee was accepted by the stamp valuation authority and the assessee was not required to pay any extra stamp duty. Once a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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