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2017 (5) TMI 292 - AT - Income TaxRe-opening of the assessment u/s.147 - “reason to believe” - assessee has shown sales consideration of property lesser than the valuation considered for registration purposes - Held that:- As per Explanation 2 of Section147 it is very clear that due to disclose lower sale consideration by the assessee, the income chargeable to tax had escaped assessment. The assessee has not produced anything before the Commissioner of Income Tax (Appeals) to show as to how this fact was fully and truly disclosed before the assessing authority and that there was not failure on the part of assessee, especially when provisions of the section 50C is applicable. Hence, the Commissioner of Income Tax (Appeals) considered the action of the Assessing Officer is fully covered by the provisions of Explanation 1 to Section 147 It is possible that with due diligence the Assessing Officer would have ascertained this fat at the time of original assessment also, but in view of the explanation (1) it does not mean that there was no default on the part of the assessee. Hence, reopening u/s.147 is held to be valid. The assessee has tried to take shelter under the exception provided by the above stated proviso where an assessment under sub-section (3) of section 143 has been completed, no action after the expiry of four years from the end of the assessment year can be taken. But as stated above, when the assessee has not disclosed fully and truly the facts necessary for the assessment, this proviso will not come to its rescue. - Decided against assessee Confirming the action of the AO in invoking the provisions of the section 50C - Held that:- Assessee made a request the AO to refer the valuation issue to the valuation cell u/s.50C(2) of the Act, which was not considered by the AO. When this was raised before the Ld.CIT(A), he also rejected it. In our opinion, we find merit in the argument of the ld.A.R. Before considering valuation u/s.50C(1) of the Act, if the assessee requests for reference to Departmental Valuation Officer (DVO), the AO shall refer the matter to the DVO and he cannot overlook it. Hence, we direct the AO to refer the matter to the DVO and thereafter frame the assessment in accordance with law. This ground of assessee is allowed.
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