Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1475 - AT - Income TaxAddition on account of LTCG - addition not as per report of DVO by holding that the reference made by AO to the DVO u/s 55A - addition on account of cost of acquisition of assets sold by the assessee, on which long term capital gains was declared - HELD THAT:- Hon’ble Bombay High Court in CIT Vs. Puja Prints [2014 (1) TMI 764 - BOMBAY HIGH COURT] is that reference could be made to the Departmental Valuation Officer only when the value adopted by the assessee was less than the fair market value. In case the value adopted by the assessee of any property was more than the fair market value as determined by the DVO, then such invocation of provisions of section 55A(a) of the Act was held to be not justified. Reference was also made to the amendment to section 55A(a) of the Act in 2012, wherein for the words “is less than the fair market value” was substituted by the words “is at variance with its fair market value”, was held to be clarificatory and it was categorically held that where the amendment was made effective only from 01.07.2012; the Parliament has not given retrospective effect to the amendment. The Hon’ble High Court thus, held that the law to be applied in the facts of the present case was the section as existing during the period relevant to assessment year 2006-07. Now, coming to the facts of the present case, the year under reference is assessment year 2009-10 and since the amendment was made effective from 01.07.2012 and the Hon’ble High Court has held that law which is to be applied in such cases is as existing during assessment year 2009-10, then the preamended provisions of section 55A(a) of the Act are to be applied. In such scenario, there is no merit in the order of Assessing Officer in adopting the cost of acquisition as on 01.04.1981 at the value less than the value shown by the assessee, which in turn, is based on the report of the approved Valuer. - Decided against revenue.
|