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2018 (7) TMI 133 - AT - Income TaxAdoption of value of property at the circle rates of the State Government as against value of sale consideration disclosed by the assessee - invoking Section 50C - absence of the DVO report - non reference of matter to DVO - Applicability of provisions of Section 153C - peririod of limitation - Held that:- The courts time and again held that reference u/s 153C(2) is mandatory and the AO having failed to follow the provisions of the Act, he should not be given one more chance to refer the matter to the DVO. In the case of Manish Maheshwari vs. ACIT and Anr. (2007 (2) TMI 148 - SUPREME COURT OF INDIA), the provisions of Section 153C deserves that if the AO not recorded a satisfaction for the issue of notice 153C of the Act, the proceeding deserves to be quashed rather than giving the AO another chance to record proper reasons, when the AO not followed the procedure in law, the addition made deserves to be deleted. The lower authorities passed the order in summary manner without going into the merits of the case and analyzing the legal issue involved, the applicability of Section 50C(2) (a) of the Act, in a particular. AO has not found any adverse material evidence to indicate that assessee has received any excess money over and above the sale consideration, in the return of income. In the light of the peculiar facts of this case and in the absence of the DVO report, we are of the considered opinion that the assessee cannot put to travel up facing virtual trial to appear before the AO after three years to prove that the sale price declared by him was reasonable. Addition to be deleted - decided in favour of assessee
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