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2015 (6) TMI 1236 - AT - Income TaxComputation of capital gain - computing the value of the flat as beyond the value adopted by the Stamp Valuation Authorities - Whether CIT(A) is erred in restricting the addition of ₹ 70 lakhs made by the Assessing Officer as long term capital gains and not appreciating the facts that the stamp duty valuation at ₹ 30.03 Lakhs did not pertain to the valuation of the said two flats received by the assessee from the developer? - HELD THAT:- To file an appeal the power is not given to the AO but it is vested in the Commissioner of Income Tax to give authorisation to the AO to file an appeal which has to be done with utmost sincerity and with an open mind. In the instant case the appeal appears to have been filed in a routine fashion in as much as the AO has no basis for valuing each flat at ₹ 35 lakhs, which is more than double the value adopted by the Stamp Valuation authorities. Even as on date the valuation report has not been obtained from the DVO. Under these circumstances it is difficult to fathom as to how a responsible officer such as Commissioner of Income Tax has approved the request of the AO to prefer an appeal against the order of the CIT(A). We take this opportunity to advice all the Commissioners not to grant authorisation in cases where there is no chance of winning an appeal. In fact we called for the record to verify as to the reasons given by the AO which might have prompted the learned Commissioner to give his authorisation. The record was not made available to us. Be that as it may, in the peculiar facts and circumstances of the case the AO has not made out any case under section 50C of the Act or under any other provisions of the Act to make an addition whereas the learned CIT(A) has given cogent reasons to delete the addition on both the counts. We, therefore, approve the order passed by the CIT(A) and dismiss the appeal filed by the Revenue.
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