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2020 (12) TMI 1070 - AT - Income TaxValidity of notice - Reopening of assessment u/s 147 - disallowing the capital gains as claimed by the assessee - advertent error in the notice issued by the AO reflecting only the PAN column of the notice mentions PAN of the “HUF” instead of the ‘individual’ - HELD THAT:- A careful reading of the Section point towards the benefit envisaged to all the stakeholders whether it is the citizen or the state. In our case, the assessee as well as the revenue. Even, the revenue is precluded from treating the “return of income” filed by the assessee as null and void in cases where there has been a mistake, defect or omission in such return of income. The mistakes in the return such as wrong quoting of the Section or provision pertaining deduction, exemption or wrong filing of the column or wrong typing of PAN or address are not to be treated as fatal to make a valid return invalid. Section 292B has been invoked to benefit the assesses where the returns have been filed in correct jurisdiction. There is a marked difference between want of basic or inherent jurisdiction and exercise of authority which has not been vested with the Assessing Officer. In the instant case, the Assessing Officer has rightly invoked the provisions of Section 148 by recording the reasons and by issue of notice to the proper person to which it was intended to. In the present case, there is an in advertent error in the notice issued by the AO reflecting only the PAN column of the notice mentions PAN of the “HUF” instead of the ‘individual’ whereas the body of the notice and the address shows that the notice is clearly meant for the assessee himself. The provisions of Section 292B have been further clarified the Circular No. 179 of CBDT dated 30.09.1975 that this provision has been made to provide against purely technical objects without substance coming in the way of validity of the assessment proceedings. On going through the Reasons recorded, the address on the notice, the body of the notice issue of notice, we hold that the notice of the Assessing Officer wherein there is a mistake only in the PAN number, the notice is covered by the provisions of Section 292B. Capital gain - ascertaining the fair market value of a capital asset - Valuation made by the DVO - CIT (A) directed the Assessing Officer to adopt the valuation as made by the DVO - invoking the jurisdiction by the AO u/s 55A - HELD THAT:- On going through the explanatory note to the Finance Bill 2012, we find that the amendment is substantive in nature and is prospective. The amendment is applicable to all the proceedings taken up after 01.07.2012. In the case of Dove Investments Pvt. Ltd. Vs Gujarat Industrial Investment Corporation [2006 (2) TMI 287 - SUPREME COURT] as observed that regard must be had to the context, the subject matter and object of the statutory provision in question in determining whether the same is mandatory or directory. No universal principle of law could be laid down in that behalf as to whether a particular provision or enactment shall be considered mandatory or directory. It is the duty of the Court to try to get the real intention of the Legislature by carefully analyzing the whole scope of the statute or section or phrase under consideration. In the instant case, the notice has been issued on 18.03.2014 and the proceedings have been concluded on 31.03.2015. Hence, the invoking of provisions of Section 55A existing from 01.07.2012 by the Assessing Officer and reference to the Valuation Officer which is in accordance with the provisions of the Act inforce at that time, cannot be faulted with. Objection to the Valuation Process - if the value as determined by the registered valuer is correct or the value determined by the DVO is correct - As gone through the reports of Tahsildar Sadar, ADM Finance regarding the circle rates. While the report of the DVO is based on the prices given as per the circle rates notified by the ADM Finance, the value determined by the registered valuer was based on the report of the Tahsildar which was based on the local enquiries. There has been a dispute as to which segment price of Rampuri Mohalla has to be taken into consideration. The benefit of construction has not been adequately allowed. Keeping in view the entire facts of the case, we hold that the ends of the justice would well served by referring the matter back to the file of the AO to accord further benefit to the construction of nala, boundary wall, tube well, earth filling work and to determine the price taking into consideration the value of Mohalla Rampuri segment. In the result, the appeal of the assessee on the grounds of reopening and reference to Valuation Officer is dismissed. The process and method of determining the FMV is set aside with directions.
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