INCOME TAX ACT, 1961

Section 50C

Capital gains - Full value of consideration - Assessee claimed value to be in dispute in terms of section 50C(2)(b) -

Assessee was an individual and was a retired employee in Accountant General Office. She sold property and sale consideration as per sale deed was received of Rs. 1.30 Crores. Value of property for purpose of stamp duty was of Rs. 2,09,10,000. AO brought difference to tax as long term capital gains. Held: Purchaser of property filed a letter before Inspector General of Registration and Controller of Stamps. It would not be sufficient to conclude that value adopted for purpose of stamp duty by registering authorities was disputed in an appeal revision before an authority as contemplated under section 50C(2)(b). Apart from above AO made reference to DVO before conclusion of assessment proceedings. Aforesaid letter was dated after date of reference to DVO by AO. Thus as on date on which AO referred question of valuation of property to the DVO, there was no bar in terms of section 50C(2)(b). Therefore, valuation report given by DVO could not be ignored. Since DVO himself valued property which was less than value adopted for purpose of stamp duty and registration, same should be adopted for purpose of determining full value of consideration received on transfer of capital asset for computing LTCG as laid down in section 50C(3).

REFERRED :

FAVOUR : Partly in assessee's favour

A.Y. : 2016-17

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