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2014 (3) TMI 1173 - AT - Income TaxPenalty u/s 271(1)(C) - Addition of long term capital gains by taking a different fair market value as on 01-04-1981 - HELD THAT:- Addition is purely based on difference of opinion. The assessee has undisputedly disclosed the basis of valuation of fair market value adopted as on 01.04.1981. It is pertinent to note that the fair market value as on 01.04.1981 is always determined by considering the instance of sale and purchase in the area and by making certain adjustment. Even by taking the utmost care while determining the value. It need not necessarily give the actual value of the property as on 01.04.1981. Since the actual cost or value of the property is based on the opinion, therefore, any addition made on the basis of difference of opinion and estimate would not automatically lead to the conclusion that the assessee has concealed particulars of income or furnished inaccurate particulars of income. The assessee has relied upon the various decisions wherein it has been held that the report of the DVO is merely an expression of opinion and on the basis of opinion and estimates penalty cannot be levied u/s 271(1)(C) as the concealment has not been proved in such a situation. We are of the considered opinion that the penalty u/s 271(1)(c) is not warranted in respect of the addition based on different fair market value as on 01.04.1981 when the assessee has substantiated its claim by the valuation report of a registered valuer. - Decided in favour of assessee.
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