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2014 (5) TMI 46 - ITAT MUMBAIDeletion of STCG - Valuation of asset Held that:- The decision in M/s Lalbhai Kalidas & Co. Versus Income Tax Officer 16(3) (2), Mumbai [2013 (11) TMI 682 - ITAT MUMBAI] followed - FAA was of the view that a reading of section 43 clause (c) indicated that the written down value had to be adjusted by the actual cost of any asset falling within the block acquired during the year, that the assessee had purchased two galas and entire amount of Rs. 40 lacs had been paid, that registration had been complete, that the assessee had acquired the assets as per section 43(6)(c) - The material test in the connection is domain over the flat and investment in it - Central Board of Direct Taxes Circular No. 471*, dated October 15, 1986, deals with investment in flats under the self-financing scheme of the Delhi Development Authority - The Board has stated in the circular that when an allotment letter is issued to an allottee under this scheme on payment of the first instalment of the cost of construction, the allotment is final unless it is cancelled - The Board has directed that such an allotment of a flat under this scheme should be treated as a case of construction for the purpose of capital gains thus, the order of the FAA upheld Decided against Revenue. Reference made to DVO - Valuation of property u/s 50C(2) of the Act Held that:- FAA was of the view that the assessee had already disputed the valuation before the AO and the AO was duty bound to send the matter to the DVO for valuation - As the AO did not any mention of reference to the DVO in the assessment order, he directed the AO to adopt the value determined by the DVO, in case matter was referred by him to the DVO - The decision in S. Muthuraja Versus Commissioner of Income Tax [2013 (8) TMI 40 - MADRAS HIGH COURT] followed - the mandate of section 50C(2)is very clear and AO is left with no option, but to refer the matter to the DVO - if the FAA has given a conditional direction in accordance with the provisions of the Act, then his order has to be upheld Decided against Revenue.
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