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2020 (9) TMI 1011 - AT - Income TaxAddition u/s 43CA - differential amount over and above the declared sale consideration - determination of Fair market value of commercial plot - determination of Fair market value of commercial plot - HELD THAT:- Assessee didn’t raise any objections before the DVO where he shared the preliminary estimate with the assessee for reasons best known to it and has raised its objections for the first time before the AO on receipt of the DVO report and the secondly, the AO has proceeded to follow the report the DVO. We therefore donot find any infirmity in the action of the DVO as the assessee failed to raise any objections before him. We also donot find any infirmity in the action of the AO in following the report of the DVO. Once the AO has referred the matter to the DVO for his expert opinion and the latter has submitted his report, the AO is duty bound to follow the said report and doesn’t have any discretion in that regard. AO cannot entertain any objections so raised by the assessee against the valuation so determined by the DVO. Therefore, we are unable to accede to the contention so advanced on behalf of the assessee that the AO is not always obligated to follow the report of DVO and has to apply his own independent mind to the facts and circumstances persistent to the sale transaction. We have also gone through the decisions relied upon by the ld A/R at the Bar and find that none of the decisions support the contention so advanced on behalf of the assessee. In the result, the ground of appeal is dismissed. Addition u/s 14A - HELD THAT:- Disallowance u/s 14A r/w Rule 8D is restricted to the extent of dividend income claimed exempt by the assessee and the remaining addition is hereby directed to be deleted. The ground is thus partly allowed.
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