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CS Professional · Corporate Restructuring, Valuation and Insolvency · Taxation and Stamp Duty Aspects of Corporate Restructuring

Vikram Estates Ltd transfers a building (a capital asset) for Rs 4,00,00,000 to a transferee company in a restructuring. The stamp duty value is Rs 4,80,00,000. The company claims the stamp duty value exceeds fair market value, and the stamp duty value is not disputed in any appeal, revision or other reference. What may the Assessing Officer do under section 78 of the Income-tax Act, 2025?

The Assessing Officer may refer the valuation of the capital asset to a Valuation Officer. This is allowed where the assessee claims the stamp duty value exceeds fair market value and the stamp duty value is not disputed in any appeal, revision or other reference.

  1. ARefer the valuation to a Valuation OfficerCorrect
  2. BReject the claim since stamp duty value is final
  3. CAutomatically adopt Rs 4,00,00,000
  4. DWait for the registering authority to revise the value

Explanation

Where the assessee claims the stamp duty value exceeds fair market value and the value is not disputed elsewhere, the Assessing Officer may refer the valuation to a Valuation Officer. If the officer's value exceeds the stamp duty value, the stamp duty value is taken instead. Nothing makes the stamp duty value final or automatically replaced.

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