|CORAM:||I. P. Bansal (JM), R. C, R. C. Sharma (AM)|
|CATCH WORDS:||DVO's valuation report, stamp duty valuation|
|COUNSEL:||Usha Dalal, Y. P. Trivedi|
|DATE:||October 31, 2014 (Date of pronouncement)|
|DATE:||November 3, 2014 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|S. 50C(2): Reference to DVO cannot be made if assessee has challenged the valuation by the stamp authorities and even if the said challenge is dismissed on ground that as purchaser paid the duty, assessee had no locus standi to challenge stamp valuation|
The mandate of section 50C is clear and the sale consideration shall be deemed to be the value adopted or assessed by the Stamp Valuation Authority. The only exception provided is that firstly the assessee should claim before AO that such value adopted or assessed by the Stamp Valuation Authority exceed fair market value and secondly the assessee should not have disputed such valuation adopted in any appeal or revision and no reference is made before any other authority, court or High Court challenging the value adopted by the Stamp Valuation Authority. In the light of aforementioned facts it can be said that the value adopted and assessed by the Stamp Valuation Authority under sub-section (1) was disputed by the assessee in the appeal, revision and even before Hon’ble High Court. If it is so, then according to the provisions of section 50C the assessee cannot obtain the benefit as provided in sub-section(2) of section 50C as neither of the conditions described in sub-section(2) has been fulfilled by the assessee. In this view of the situation, neither the AO nor Ld. CIT(A) could adopt sale consideration of the property any amount less than the value adopted or assessed by the Stamp Valuation Authority as section 50C does not recognize such curtailment of the sale consideration in any manner.