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2023 (2) TMI 421 - ITAT PUNEPenalty u/s 270A - addition u/s 43CA on the strength of report of the DVO - assessee had sold certain land on various dates at a price less than the stamp value - AO proposed to make addition on the basis of stamp value - assessee made a request for making a reference to the DVO - HELD THAT:- We have gone through the report of the DVO as apparent the value determined by the DVO is again an estimate, inasmuch as he considered certain other properties at different rates and then averaged such rates to find out the value which the property ought to have realized on the transfer. It is vivid that the difference between the value declared by the assessee and the value determined by the DVO is minimal and further the value of the DVO is on the basis of value of certain other nearby properties. Section 270A of the Act provides for imposition of penalty for under-reporting and misreporting of income.It is ostensible from the language of sub-section (6) that an addition made on the basis of estimation cannot provide foundation for under-reported income for the purpose of imposition of penalty u/s 270A of the Act. As the only basis of the addition is the estimate made by the DVO, we hold that the penalty cannot be sustained. We, therefore, order to delete the same. Appeal of assessee allowed.
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