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2014 (8) TMI 751 - ITAT HYDERABADAdmission of additional grounds – Held that:- The assessee neither at the stage of assessment nor before the CIT(A) has raised any issue with regard to validity of proceeding initiated u/s 147 of the Act - considering the fact that the issue being raised is a purely legal and jurisdictional issue going to the root of the matter and can be decided on the basis of facts available on record, the additional grounds are admitted following the decision in NTPC Vs. CIT [1996 (12) TMI 7 - SUPREME Court]. Jurisdiction of AO u/s 147 – validity of proceeding u/s 147 - Application of section 50C – Held that:- The assessee has tried to justify sale consideration mentioned in the sale deed by stating that though the area of land as per the document was 623 sq.yds. but land physically available was only 580 sq.yds. - due to severe vaastu defect area of 125 sq.yds. was not usable for construction purposes and the buyer has also spent an amount of ₹ 30 lakhs towards leveling and construction of retention wall - though the DVO has accepted certain specific issues raised by the assessee in this regard, he has not properly given discount towards the same - the value of the property on the date of sale of comparable cases cannot be applied to the assessee's property, which was sold on 29/09/2006 - assessee's objection is valid. If at all the DVO is to consider comparable sale instances, then, he has to consider the sale instances of the relevant date when the assessee sold property or dates proximate to that date - considering the appreciation in value of the property as per the SRO guide line the discount given by the DVO on backward calculation is not fair - the value determined by the DVO cannot be treated as the fair market value of the property - the sale consideration shown by the assessee in absence of adequate evidence cannot be accepted - As it appears neither any physical verification has been done at any stage to ascertain the exact extent of land nor any conclusive evidence has been brought on record to establish such claim – thus, the matter is to be remitted back to the AO for ascertaining the fair market value of the property as on the date of sale – Decided partly in favour of Assessee.
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