COMMISSIONER OF INCOME TAX Vs. CHANDRA NARAIN CHAUDHRI

JUDGEMENT

(1.) We' have heard Sri Bharat Ji Agrawal, Senior Advocate, assisted by Sri Shambhu Chopra, for the appellant-revenue. Sri Krishna Agarwal appears for the respondent-assessee.

(2.) This Income Tax Appeal under Section 260-A of the Income Tax Act 1961 (the Act) is directed against the judgement and order dated 10.05.2011, passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad in ITAT No. 304/Alld/2010, relating to Assessment Year 2005-06. The department has preferred the appeal, on the following questions of law.-

(3.) After having heard the learned counsel for the parties and perusing the orders passed by the AO, CIT (A) and ITAT, we find that appropriate question, which should have been framed for consideration is as to whether if the assessee claims before the AO that the value adopted or assessed or assessable by Stamp Valuation Authority under sub-section (1) of Section 50C of the Act exceeds the fair market value of the property as on the date of transfer, the Assessing Officer should refer the valuation of the capital asset to a Valuation Officer under Section 50 C (2) of the Act; and whether in the facts and circumstances, if the assessee has filed a report of the approved valuer under Section 12-A of the Wealth Tax Act 1957, and to which no objection was filed by the Income-tax Department at any stage, it is necessary for the AO to refer the valuation of the capital assets to the Valuation Officer under Section 50-C (2) of the Act?