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2019 (8) TMI 846 - AT - Income TaxCondonation of delay of 46 days - no proper advice by tax consultant within the reasonable period of time to file the appeal - HELD THAT:- Taking into account the principles laid down by the Hon’ble Apex Court in the case of MST Katiji and Others [1987 (2) TMI 61 - SUPREME COURT] wherein laid down the principles for dealing with matters relating to condonation of delay; the decision of the Hon’ble Karnataka High Court in the case of ISRO Satellite Centre [2011 (10) TMI 737 - KARNATAKA HIGH COURT] and the reasons the assessee has laid out in his Affidavit seeking condonation of delay (supra), we are of the view that the assessee was prevented by reasonable and sufficient cause from filing the appeal for AY 2014-15 on time before the Tribunal. In this view of the matter and respectfully following the principles laid down by the Hon’ble Apex Court in the case of MST Katiji and Others (supra), we condone the delay of 46 days by the assessee in filing the appeal before the Tribunal and accordingly admit the assessee’s appeal for consideration and adjudication. LTCG computation - applicability of provisions of section 50C - HELD THAT:- In the case on hand, the circumstances are even more acute as the AO who had admittedly made a reference to the DVO vide letter No.ACIT C-3(2)(1)/16-17/105 dated 13.12.2016, strangely did not wait for the DVO’s valuation report and hurriedly proceeded to pass the impugned order of assessment on 27.12.2016; just 14 days later; when the DVO had already initiated valuation proceedings by calling for details to be filed by the assessee on 02.01.2017 and had time to submit his Valuation Report upto 30.06.2017. Hon’ble Calcutta High Court in the case of Sunil Kumar Agarwal Vs. CIT [2014 (6) TMI 13 - CALCUTTA HIGH COURT] has held that there is no reason why the machinery provided by Legislature should not be used and the benefit thereof refused, even in a case where no prayer has been made by the assessee, who may not have been properly instructed. Since the AO, discharging a quasi-judicial function, has the bounden duty to act fairly; he should in all fairness make a reference to the DVO to have the valuation of the said property contemplated under section 50C. The orders passed by the authorities below i.e., CIT(A) and AO are set aside and we restore the matter of computation of LTCG on sale of the said property by the assessee to the file of the AO. AO shall obtain the DVO’s Valuation Report, as called for by him in his reference dated 13.12.2016 , and after such valuation is made by the DVO, the computation of LTCG shall be made on this issue, de novo in accordance with law and after affording the assessee adequate opportunity of being heard in the matter by both the DVO for valuation proceedings and the AO and to file details required which shall be duly considered by the DVO / AO before deciding the issue. Grounds raised by the assessee are allowed for statistical purposes.
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