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urgent help req on SEC 5C????

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)

30 May 2011

One of our client has sold urban agricultural land in march11.
The buyer had challenged the stamp valuation done by stamp valuation authority which they reduced by 20% since he paid all d stamp duty on it.
My querry is whther seller (our client) can also challenge d same stamp valuation deptfor reduction of stamp valuation under sec 50C,
as for income tax purpose, as its actual sale value is less than d stamp value adopted by stamp valuation even after reducing by the buyer for the purpose of payment of stamp duty.
since we need to tak this notional value as FULL VALUE OF CONSIDERTAION .
ur comments would be of immense help
Thanks in advance.

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8 Replies

Sasanka Bhalaki (Student) (1935 Points)
Replied 30 May 2011

IF the assessee claims that the value adopted or assessed forstamp duty purposes exceeds the fair market value of the property as on the date of transfer and he has not disputed the value so adopted or assessed in any appeal or revision or reference before any authority or Court the Assessing Officer may refer the valuation of the relevant asset to a Valuation Officer in accordance with section 55A of the IT Act. If the fair market value determined by the Valuation Officer is less than the value adopted for stamp duty purposes, the Assessing Officer may take such fair market value to be full value of consideration. However, if the fair market value determined by the Valuation Officer is more than the value adopted or assessed for stamp duty purposes, the Assessing Officer shall not adopt such fair market value and will take the full value of consideration to be the value adopted or assessed for stamp duty purposes.

It is also proposed to provide that if the value adopted or assessed for stamp duty purposes is revised in any appeal, revision or reference, the assessment made shall be amended to recompute the capital gains by taking the revised value as the full value of consideration.

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 30 May 2011

Refer Sec 50C (2) n (3) wher assesee can challege the value b4 stamp val authority / can claim tht its FMV is less than value adopted by stamp authorities.

Sasanka Bhalaki (Student) (1935 Points)
Replied 30 May 2011

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 30 May 2011

So whther selleris eligible to chalenge d value already adopted by stamp val authorities

Sasanka Bhalaki (Student) (1935 Points)
Replied 30 May 2011

Hey I think..seller cannot challenge..50C is the case of increase in the value..here in ur case it is reduce in the value. so i don't think seller can challenge..

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 30 May 2011

wat arguments can stamp valuation authrity make to refuse to appeal by seller n

wat shld i do to counter their arguments.Thanks

Sasanka Bhalaki (Student) (1935 Points)
Replied 30 May 2011

Hey I think..seller cannot challenge..50C is the case of increase in the value..here in ur case it is reduce in the value. so i don't think seller can challenge..