55A and 50C

Section 50C has been inserted by the Finance Act, 2002 with effect from 1st April, 2003. Provision when construed literally and applied to cases in which value of transfer is honestly or truly stated/declared as per contractual but which is lower than the value assessed or adopted by the stamp valuation authority, would produce absurd and irrational picture because the assessee would be required to pay capital gain tax on the amount which he had not contracted and which has not accrued or received by him as profit or gain Reference to Valuation Officer [Sec.55A] Where the value of the assets as claimed by the assessee is in accordance with the estimate made by are registered valuer (who works in a private capacity under a licence issued by the Board and his valuation is not bunding on the Assessing Officer), but the Assessing Officer is of opinion that the value so claimed is less than its fair market value [sec. 55C(a)].