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2014 (11) TMI 525 - AT - Income TaxApplication of section 50C and addition to be made u/s 69C – Held that:- Both the sections operate independently i.e. to say that section 50C shall bet attracted where there is a transfer of property by the assessee and receives sales consideration - This automatically puts into oblivion the purchase part of the agreement - the argument of the assessee before the CIT(A)was correct that provisions of section 50C do not apply on purchase part of the agreement. The material available with the AO was report of the DVO, and the report of the registered valuer - the remand report does not talk about anything factual but it only says that since the DVO valuation is closer to stamp duty valuation, hence DVO’s report is being adopted - there is nothing in the report of the DVO - The only acceptable document is the report of the registered valuer, which has same basis - the observation of the CIT(A) that the AO must have some reasonable material to put the leash on the assessee - But the only material available with the AO was the DVO’s estimated report, which is based entirely on comparative transactions in the close vicinity - This, cannot become the basis of adoption of financial valuation - there is no infirmity in the order of the CIT(A) to accept the assessee valuation, which ultimately was more than the registered valuer’s valuation. Admission of additional ground under Rule 27 – Issue of notice for reopening of assessment u/s 148 – Held that:- The ground raised pertained to non-issuance of notice u/s 143(2) within 12 months of notice u/s 148 - Though the date of notice u/s 143(2) is not given in the order, but it is apparent that either it would have been issued along with 142(1) or subsequent - In either cases, the notice is barred, because as per the proviso the notice should have been issued within the period of expiry of twelve months from the date of filing of the return - the issue of notice u/s 143(2) beyond the period of 1 year is barred by limitation, which makes the entire proceedings vitiated - the reassessment proceedings and assessment order passed u/s 143(3) read with section 148 is to be set aside – Decided against revenue.
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