As per Section 50C if a property is sold below the Circle Rate, the circle rate of the property would be deemed to be the rate at which property has been sold and capital gains tax would be levied assuming that the property has been sold at the Circle Rate. Irrespective of the consideration for which the property has been sold, if it has been sold for a price below the Circle Rate, the circle rate would be assumed to be the Sale Price and Capital Gains Tax would be levied. However, in case the taxpayer claims before the Assessing Officer that the fair market value of the property is genuinely lower than the Circle Rate, the Assessing Officer may request the Valuation Officer to conduct a valuation of the property. In case a valuation is conducted by the Valuation Officer and 1. Value ascertained by the Valuation Officer is lower than the Circle Rate: The Value so ascertained by the Valuation Officer would be deemed to be the Sale Price 2. Value ascertained by the Valuation Officer is more than the Circle Rate: The Circle Rate would be deemed to be the Sale Price. Thus, from the above it is clear that if a Reference is made to the Valuation Officer, the sale price to be considered for the purpose of Capital Gains cannot be increased but can only be decreased.