Case Law Details
Nirmal Santra Vs ITO (ITAT Kolkata)
ITAT Kolkata held that invoking deeming provisions under section 50C and adopting value of property as per Stamp Valuation authority without referring the matter to Departmental Valuation Officer unsustainable. Accordingly, matter restored to jurisdictional Assessing Officer.
Facts- The sole grievance relates to addition of Rs. 36,81,810/- made by ld. AO invoking the deeming provisions of Section 50C of the Act.
It is the case of the assessee that it has received Rs. 15 Lakhs as full value of consideration on sale of the capital asset. However, the value of the property as per Stamp Valuation Authority is Rs. 51,81,810/-. When the case was processed u/s 143(1)(a) of the Act the computer system by default picked up the figure of value of property as per Stamp Valuation Authority i.e. Rs. 51,81,810/-and computed the long term capital gain accordingly thereby making addition of Rs. 36,81,810/-.
Conclusion- We find that the judgment of the Hon’ble Jurisdictional High Court in the case of Sunil Kumar Agarwal is squarely applicable on the facts of the instant case and the issue raised before us. Therefore, since the assessee has claimed and that the sale consideration received by it is at Rs. 15 lakh is equivalent to the fair market value of the said land and not the value adopted by the Stamp Valuation Authority at Rs. 51,81,810/-, therefore, the lower authorities ought to have referred the matter to the Departmental Valuation Officer for valuing the fair market value of the said property. Therefore, under these given facts and circumstances, grounds raised by the assessee are allowed for statistical purposes and the matter is restored to the jurisdictional Assessing Officer for carrying out necessary exercise of referring the matter to the Departmental Valuation Officer and then to decide in accordance with law as discussed herein above.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
