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2017 (1) TMI 384 - AT - Income TaxApplicability of provision of section 50C - adoption of value as per stamp duty valuation - Held that:- We find that in the earlier assessment year the AO has held that the asessee’s income from sale of land was income from business. Despite this submission the authorities below have chosen to ignore this aspect on the plea that the assessee has submitted the return of income in Form ITR-2. In our considered opinion this is not at all a cogent reasoning. In the preceding scrutiny assessment the Revenue has held that the assessee’s transaction in sale and purchase of land was a business income. If this be so, there is no question of applying the provisions of section 50C. Further more even if the same is not treated as business asset, it is incumbent upon the AO to refer the matter to the valuation cell if the assessee objects it. Further more the assessee’s plea of submission of books of accounts has also not been entertained. We find that the Revenue having held that in earlier years the assessee was engaged in the business of purchase and sale of land cannot make an about-turn and hold that the assessee was not engaged into the same merely because the return of income has been filed in Form ITR-2. Hence on this anvil interest of justice would be served if the matter is remitted to the file of the AO. The AO is directed to decide afresh after taking into account the result of earlier years assessment and the Hon’ble Apex Court exposition as mentioned above. Needless to add the assessee should be granted adequate opportunity of being heard.
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