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2015 (6) TMI 456 - AT - Income TaxCapital gain computation - valuation of property refer to the DVO - assessment as provided under section 50C(2) and 50C(3)- AO computed the capital gains after taking the circle rate/stamp duty valuation - Held that:- Assessee had filed objections against adoption of the circle rate/stamp duty valuation before the Assessing Officer. When assessee has filed objections before the Assessing Officer that circle rates are above the fair market value, the Assessing Officer was duty bound to refer the impugned property for valuation to the DVO before proceeding to make an assessment of long term capital gains. The CIT (A) has only directed the Assessing Officer to refer the matter for valuation to the DVO and thereafter conclude the assessment. The directions of the CIT (A) has legal sanctity by various judicial pronouncements, including the judgment of N Meenakshi vs. ACIT [2009 (9) TMI 59 - MADRAS HIGH COURT]. Therefore, we see no reason to interfere with the order of CIT (A) - Decided against revenue. Unexplained cash credits u/s 68 - CIT(A) deleted the addition - Held that:- The cash deposited of ₹ 14,00,000/- in assessee’s accounts were duly and fully explained in the cash flow statement with supporting evidence consisting of assessee’s bank statements and the sale deed executed by the assessee as General Power of Attorney for his wife, Anjana Gupta. The copies of the cash flow statement, bank statement and various sale deeds are placed on record. The receipt of sale consideration in cash is duly supported by the sale deeds. Therefore, the addition of ₹ 14,00,000/- as unexplained cash credit u/s 68 of the Act is unwarranted and CIT (A) was justified in deleting the same - Decided against revenue. Disallow the claim cost of improvement - CIT(A) deleted the addition - Held that:- The confirmation of expenses on improvement of property before its sale has been placed on record and statement of Shri Daulat Ram Saini was recorded on oath. Confirmation and statement has been rejected by the Assessing Officer on the ground “not satisfactory, insufficient and not reliable” which are vague and based on surmises and conjectures. Therefore, the CIT (A) is justified in deleting the same - Decided against revenue.
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