Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 52 - AT - Income TaxReopening of assessment - assessee's share on retirement from the partnership firm - value of property by the value determined by the DVO - valuation report by the DVO suggesting higher value of the property - Held that:- The transaction under question is not a transfer of immovable property per se. It is only transfer of interest in the partnership firm. In such a case the value of interest in partnership firm which have been agreed upon by partners through a deed cannot be very re-determined or rewritten. There is no evidence that extra money has passed hands between the partners for the transfer of interest in the partnership firm. CIT(A) has dealt in great detail the reasons for such a difference between the value adopted by the DVO and value adopted by the Stamp Duty Authorities vis-ŕ-vis annual consideration sale at a later date vide para 7 of his order. The detailed finding given by the CIT(A) are as per material on record. We support the conclusion that the material gain determined by the AO by substitute value of property by the value determined by the DVO was not sustainable in law. The finding so recorded has not been controverted by learned DR by bringing any positive material on record. Accordingly, we do not find any justifiable reason for interfering in the order of CIT(A) for deleting the addition so made. With regard to reopening of assessment, we found that there was a valuation report by the DVO suggesting higher value of the property. Under these facts and circumstances, the AO has correctly concluded that there is a reason to believe that there is an escapement of income. Accordingly, we do not find any infirmity in the order of CIT(A) for upholding the reopening of assessment.
|