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2021 (9) TMI 97 - AT - Income TaxCapital gain computation - reference matter to the DVO for determining fair market value as per section 50C(2) - difference in the value of the property as determined by the assessee and the SRO value - HELD THAT:- As per the definition of transfer as per section 2(47) of the Act, the arguments advanced by the ld. AR in this regard is hereby rejected. From the assessment order, we observe that the AO has referred the matter to the DVO for determining fair market value as per section 50C(2) of the Act, but, it was not mentioned in the order the details of reference to DVO. He has completed the assessment without waiting for the report of the DVO. As per the judgment of the Hon’ble Calcutta High Court in the case of Sunil Kumar Agarwal Vs. CIT [2014 (6) TMI 13 - CALCUTTA HIGH COURT] if there is a difference in the value of the property as determined by the assessee and the SRO value, the AO is bound to refer the matter to the DVO and the assessment should be done on the basis of DVO report. We deem it fit and proper to remit the issue back to the file of the AO with a direction to determine the market value of the property as on the date of transfer of capital asset in accordance with law after providing reasonable opportunity of being heard to the assessee in the matter. The assessee is directed to produce all the relevant documents before the AO to substantiate its claim. CIT(A) power to take up this issue as not born out of the assessment order - Transfer expenses disallowance - HELD THAT:- We find that the AO has accepted the transfer expenses which was not a subject matter of appeal before the CIT(A). CIT(A) cannot be taken up this issue which was not born out of the assessment order. In this connection, we rely on the decision of the ITAT, Pune in the case of NARESH SUNDERLAL CHUG [2018 (6) TMI 351 - ITAT PUNE] and THE UNITED PROVINCES SUGAR COMPANY LTD. [2021 (4) TMI 633 - ITAT KOLKATA] - Order of CIT(A) set aside. - Decided in favor of assessee.
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