ITO Vs Ketaben Janakbhai Patel (ITAT Ahmedabad)
ITAT Ahmedabad held that it is mandatory for the AO to refer the valuation to the DVO if the assessee objects to the adoption of the stamp duty value and claims that the value adopted exceeds the fair market value.
Facts- A plot of land was purchased jointly by the assessee at a purchase price of Rs. 8,15,000/-. The said plot was sold by the assessee for a consideration of Rs. 2,15,00,000/-. The Assessee’s share was of 60%. AO ascertained from the Stamp Valuation Authorities that as per prevailing jantri/circle rates, the value of the property was Rs.4,98,83,550/- against declared consideration amount of Rs. 2, 15,00,000/- in the conveyance deed. Therefore, provisions of Section50C of the Act were applicable in the case of the assessee. AO, taking into consideration the assessee’s contentions held that the said plot of land was defective and the land was also a disputed land, and also agreed with the submission of the assessee to the effect that the valuation done by the Stamp Valuation Authority(SVA) / (Jantri Value)was more than the fair market value and therefore, the matter was referred to the DVO for valuation. The DVO valued the land at Rs.3,17,86,000/-, against the Jantri/Circle rate of Rs. 4,98,83,550/-, which was taken into consideration by the then AO and accordingly addition of Rs. 1,82,33,314/- was made on account of LTCG on the basis of valuation done by DVO. CIT(A) upheld the order of AO.
