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2015 (6) TMI 456 - ITAT DELHI

2015 (6) TMI 456 - ITAT DELHI - TMI - Capital 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 Assessin .....

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th 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 dee .....

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aulat 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. - ITA No.4531/Del./2013 - Dated:- 3-6-2015 - Shri N.K. Saini and Shri George George K,JJ. For the Petitioner: Shri P.K. Jain, Advocate For the Respondent: Shri P. Dam Kanunjna, Senior DR OR .....

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under section 50C(2) and 50C(3) of the Income-tax Act, 1961. Grounds No.3, 4 & 5 relate to the issue whether the CIT (A) is justified in deleting the addition of ₹ 14,00,000/- made by the Assessing Officer on account of unexplained cash credits. Ground No.6 relates to the deletion of addition of ₹ 2,57,500/- made by the Assessing Officer on account of disbelieving the cost of improvement incurred on properties which was sold. 3. We shall take up the issues ground-wise as under. G .....

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5,00,000/-). 5. Aggrieved the assessee preferred an appeal before the CIT (A). It was submitted before the CIT (A) that the fair market value of the property as per valuation report is only ₹ 15,00,000/-. It was further submitted that the assessee had objected to the adoption of the circle rate/stamp duty valuation before the Assessing Officer vide his letter dated 01.01.2013. Therefore, it was submitted that the valuation of the property was to be referred to the DVO and assessment is to .....

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erty to the DVO when the assessee had objected and the assessee had in fact pleaded before the AO in the letter dated 01/01/2013 that the valuation of the property may be referred to the DVO and the valuation of the DVO should be adopted as provided u/s 50C(1), 50C(2) & 50C(3). After considering all the facts and circumstances of the case, I am of the view that the AO has not followed the complete provisions of section 50C(2) and accordingly, the AO is directed to refer the valuation to the .....

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ear that assessee had filed objections against adoption of the circle rate/stamp duty valuation before the Assessing Officer (the objections filed by the assessee dated 01.01.2013 placed at pages 43 - 44 of the paper book filed by the assessee.). 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 lo .....

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d in accordance with law. It is ordered accordingly. Grounds no.1 & 2 are rejected. GROUNDS No.3, 4 & 5 9. The Assessing Officer had made an addition of ₹ 14,00,000/- by observing as under :- 7. During the course of assessment proceeding it was noticed that the assessee has deposited a sum of ₹ 6,00,000/- on 11.02.10, ₹ 3,00,000/- on 12.02.10 and a sum of ₹ 5,00,000/- on 13.02.10 in his saving a/c no 0221053000019589 with South Indian Bank Ltd Chandni chowk New De .....

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nce of any confirmation the sum of ₹ 14,00,000/- is added to the income of the assessee as unexplained cash credits u/s 68 of Income Tax Act 1961. 10. On further appeal, the addition made by the Assessing Officer was deleted by the CIT (A). The relevant findings of the CIT (A) read as follows :- 6.3. I have considered the order of the AO and the submissions of the assessee and I find considerable merit in the submission of the assessee that the AO is not justified to make the addition of t .....

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dition made by the AO is deleted. 11. The revenue, being aggrieved, is in appeal before us. 12. The ld. DR strongly supported the assessment order. On the other hand, the AR relied on the findings of the CIT (A). 13. We have heard the rival submissions and perused the material on record. 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 execu .....

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see has sold several properties and also claimed cost of improvement on these properties. The cost of improvement claimed was ₹ 5,15,000/-. The Assessing Officer disallowed 50% of the cost of improvement while computing the long term capital gains and hence, made an addition of ₹ 2,57,500/-. The relevant finding of the Assessing Officer in making the addition reads as follows :- 6. During the course of assessment proceedings, it is noticed that the assessee has claimed to have got re .....

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