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2010 (11) TMI 199 - AT - Income TaxSection 50C - Whether the CIT(A) was having power to admit assessee’s claim without filing revised return of income - During the assessment proceedings assessee filed a valuation report stating the value as on 1-4-1981 at ₹ 3,80,000 and the indexed cost of acquisition has been arrived at ₹ 18,24,000 - The AO did not accept the sale consideration at ₹ 21,00,000 and on noticing that the stamp value for the purpose of registration was at ₹ 42,27,104 has adopted the stamp value pending valuation by the DVO under the provisions of section 50C, the assessment would be rectified after the receipt of valuation report –Regarding the power of CIT(A) Hon’ble Supreme Court in the case of Goetze (India) Ltd. v. CIT (2006 -TMI - 5171 - SUPREME Court) – Held that CIT(A) has also similar power like ITAT under section 251(1)(c) - In the interest of natural justice the matter is remitted back to CIT(A) In fact the assessee, without prejudice to the claim under section 50C, has furnished a revised capital gains working to the Assessing Officer vide letter dated 17-12-2007, which is received by the Assessing Officer but the Assessing Officer did not choose to accept the same - It is to be noted that the Assessing Officer has no power to refer to valuation to fix the fair market value on the first day of April 1981 on the interpretation given to section 55A to a value “less than the value” offered by the assessee following the principles established by the Hon’ble Bombay High Court in the case of Daulal Mohta HUF, ITA No. 1031 of 2008 dated 22-9-2008 - Ground Nos. 1,2 & 3 are considered allowed Adoption of substituted value on the basis of DVO’s report - Consequent to the receipt of the report, the CIT(A) without considering the objections of the assessee, directed the Assessing Officer to adopt the valuation of ₹ 30,08,000 as sale consideration in place of ₹ 42,27,104 adopted by the Assessing Officer It is the objection of the assessee that the CIT(A) had not considered the objections as per the letter dated 1-6-2008 submitted to the DVO - The assessee should be given an opportunity before adopting the value – Decided in the favour of the assessee and the matter is remitted back to the file of AO for fresh adjudication
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