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2024 (2) TMI 281 - MADRAS HIGH COURTValidity of Re-assessment order - additions to the income disclosed in the return of income - Addition of difference between the purchase value and guideline value of the immovable property - amounts received as rent and contractual receipt - HELD THAT:- As it is evident that the AO was fully conscious and aware of the fact that the report of the valuation officer was awaited. In spite of being aware of this fact, he proceeded to add the difference between the consideration specified in the sale deed and the guideline value as additional income and also initiated proceedings in respect of penalty. This approach is clearly unsustainable. Addition on account of rent receipts, the petitioner provided an explanation that rent was received towards a residential house property and that the income was duly disclosed. The petitioner further explained that tax had been wrongly deducted under Section 194IB instead of Section 194C of the Income-tax Act and that the petitioner should not be put to prejudice on that account. Contractual receipt which had been shown as business income. These explanations have been brushed aside as not satisfactory without providing any reasons for such conclusion. For reasons set out above, the impugned order is liable to be and is hereby quashed. As a corollary, the matter is remanded for re-consideration by the AO. AO is directed to await the valuation report before undertaking such reconsideration.
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