ITAT, LUCKNOW BENCH ‘B’ Substitution of valuation as per SVA in place of sale consideration without reference to DVO

Substitution of valuation as per SVA in place of sale consideration without reference to DVO
Where fair market value of the capital asset under transfer is less than the valuation as per SVA and such valuation as per SVA becomes final under Stamp Duty Act then the assessee is left with no choice and has to pay tax on the notional sale consideration on the valuation as per SVA.

ITAT, LUCKNOW BENCH ‘B’ : LUCKNOW

Mohd Shoib

v.

DCIT

ITA No. 431/Luc./08

November 21, 2008

RELEVANT EXTRACTS:

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8. We have considered the rival submissions and perused the material on record. In our considered view, the argument of ld.AR that the AO has to necessarily refer the capital asset for valuation to the DVO even though there is no claim made by the assessee is not acceptable. In this regard, we refer to Section 50C(2) as under:

"Special provision for full value of consideration in certain cases. SOC.

(2) Without prejudice to the provisions of sub-section (1), where—

(a) the assessee claims before any Assessing Officer that the value adopted or assessed by the stamp valuation authority under sub section (1) exceeds the fair market value of the property as on the date of transfer;

(b) the value so adopted or assessed by the stamp valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference ts made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clause (/) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24. section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1). of section 16A of that Act*

9. Clause (a) and (b) are placed in continuation to each other. They are not separated by the conjunction "or". Even though conjunction "an
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