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How to file return where the guideline value is larger?

As for the difficulty pointed out by the reader in filling up the return, a stricter interpretation of law would mean that the assessee would have to report the capital gains on the basis of stamp value as sale price in view of Sec. 50C. But there is no scope for intimating the assessing officer about the assessee’s intention to challenge it in an appeal under stamp/ registration law or to seek a reference to the valuation officer. The return form does not provide for such a contingency. There is also no provision for a direct reference by an assessee to the valuation officer, since a claim by the assessee that the fair market value is lower than the stamp value is expected to be made by the assessee himself to the assessing officer who has to refer the matter to the valuation officer.

Absence of specific provision in the return is one of the many lacunae present in the prescribed return, some of them as this omission to the detriment of revenue. Since it does not admit any disclosure, one would like to draw attention in a covering letter.

Under the circumstances, the law cannot expect the assessee to forego his right to question the stamp duty valuation by filing a return on the basis of the guideline value.

Where the assessee is confident of proving that the valuation adopted in the document is the actual amount received and that it represents the fair market value of the particular property, he would certainly be justified to report capital gains computed on his basis in the return form irrespective of the value adopted by the stamp authorities.

A conscientious assessee may write an independent letter drawing the attention of the assessing officer that he has reported the sale value of the property on the basis of actual amount received by him supported by the report of the registered valuer, where such valuation is obtained.

In the context of exception provided under Sec. 50C, the assessee would then be leaving it to the assessing officer to decide whether he takes the case for scrutiny and make a reference to the valuation officer or to accept the return.

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