Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 296 - ITAT DELHILong Term Capital Gain on sale of shops - FMV determination - request for reference to DVO - addition of ₹ 16,69,167/- by replacing the actual sale consideration of shops of ₹ 35,25,000/- which was the fair market value as on the date of sale by the circle rate of ₹ 55,20,000/- for the purpose of calculation of capital gain - Held that:- AO referred to the provisions u/s. 50C(1) and held that the value adopted for stamp duty purposes shall be deemed to be the full value of the consideration received as a result of such transfer. AO assessed full value of the consideration as per the circle rates and added ₹ 16,69,167/- to the total income of the assessee and similarly, Ld. CIT(A) has held that AO was fully justified in taking the full value of the consideration as per the value adopted for stamp duty purposes, as the assessee failed to substantiate the claim of distressing circumstances and also held on the issue of reference that it is not mandatory for the A.O. to refer the matter to DVO mandatorily, which in my opinion, is not sustainable in the eyes of law and against the law laid down in Home Finders Housing Ltd. vs. ITO, Corporate Ward 2(3) [2018 (7) TMI 199 - SUPREME COURT OF INDIA]. Set aside the issue in dispute to the AO with the directions to refer the matter to the DVO for valuation and DVO should allow full opportunity of hearing to the assessee, as per law and submit the Report to the AO. Thereafter, the AO shall decide the matter in dispute afresh - Appeal filed by the assessee stands allowed for statistical purposes.
|