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2016 (8) TMI 1226 - AT - Income TaxAddition applying the provisions of sec 50-C - Held that:- We find that the assessee has disputed the valuation considered by the Stamp Duty Authorities and, therefore, requested the AO as well as CIT(A) to refer the matter to DVO for valuation. Therefore, as per the provisions of Sec 50C(2) of the Act, the AO should have made the reference to the Valuation Officer when the assessee has made specific request in this regard. In the light of the above, we setaside this matter to the file of the AO for making reference to the DVO to arrive at the fair market value of the property. Similarly, the issue of brokerage is also referred to the file of AO to examine brokers before making any disallowance. Addition on account of Dalali paid by the assessee in respect of the property sold by him - Held that:- We find that the assessee has failed to submit the details of cost of construction of second floor of the house except certificate from A.N. Associates and also failed to submit the requisite details for cost of improvement for the assessment year 2004- 05. Since these aspects have not properly examined by the AO, therefore, the same are required to be re-examined in proper manner after affording the reasonable opportunity of being herd. The assessee is directed to cooperate with the proceedings and produce the concerned contractor for examination of the AO. It may also be pertinent to note that valuation adopted u/s 50C has been set-aside for making reference to the DVO. Therefore, with a view to fair play and consider the fair market value of the property and consequently deduction on account of exemption and cost of improvement claimed by the assessee are also required to be reexamined and re-adjudicated at the level of the AO. Therefore, the entire assessment is set-aside to the file of AO Both the appeals of the assessee allowed for statistical purposes
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