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2014 (8) TMI 600 - HC - Income TaxInvocation of section 50C – Circle rate referred at starting point – Addition u/s 69 – Held that:- The difference between the circle rate and the amount paid was brought to tax as unexplained investment - Revenue has not relied upon Section 50C of the Act as the AO had not made reference to the DVO to compute the fair market value in terms of the provision, the addition made by invoking Section 69 cannot be sustained - The only basis and foundation of the order passed by the AO was the circle rate - Merely and solely on the basis of the circle rate, addition could have been made by the Assessing Officer by invoking Section 69 of the Act - The AO should have followed the procedure u/s 50C once dispute was raised by the assessee and reference should have been made to the DVO – the lapse and failure on the part of the AO dents and knocks the foundation on the basis of which addition was made – Decided against Revenue.
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