TMI Blog2015 (8) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... ile of AO to decide the same in accordance with law. Needless to say that the AO would afford reasonable opportunity of being heard to the assessee before passing the order. Thus, additional ground raised by the assessee is allowed for statistical purposes - I.T.A. No.178/Ahd/2012 - - - Dated:- 7-8-2015 - SHRI RAJPAL YADAV AND SHRI ANIL CHATURVEDI, JJ. For The Appellant : Shri Rushi Parikh, A.R. For The Respondent : Shri Dinesh Singh, Sr.DR ORDER PER SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER : This appeal by the Assessee is directed against the order of the Ld.Commissioner of Income Tax(Appeals)-II, Surat [ CIT(A) in short] dated 14/11/2011 for Assessment Year (AY) 2008-09. 2. The facts as culled out from the material on record are as under: 2.1. Assessee is an individual stated to be earning income from grey cloth manufacturing and selling. Assessee has filed his return of income for AY 2008-09 on 08/08/2008 showing total income of ₹ 65,820/-. The case was selected for scrutiny and thereafter the assessment u/s.143(3) of the I.T. Act (hereinafter referred to as the Act) was framed by the AO vide order dated 13/12/2010 and the total income w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han High Court in the case of Shilpa Associates (263 ITR 317), it can be raised before the Hon ble ITAT. 2.3. Before us, at the outset, the ld.AR submitted that though the assessee has raised various grounds but the only effective issue is with respect to the addition made by following the valuation method u/s.50C of the Act. 3. During the course of assessment proceedings, the AO noticed that assessee owned 14 properties with 17 other co-owners and his share in the property was shown at 1/18th part in the sale proceeds. He also noticed that assessee has sold properties whose document value was ₹ 2,37,34,750/- and assessee s share in sale proceeds was at ₹ 13,18,595/-. Assessee had worked out Long Term Capital Loss (LTCL) of ₹ 1,83,713/- by claiming the cost of acquisition at ₹ 2,70,258/- and the index cost of acquisition was determined at ₹ 14,89,122/-. The AO obtained information u/s.133(6) of the Act from Sub-Registrar, Navagam, Surat and according to which the stamp duty value of the plot of land that was sold was ₹ 4,48,50,675/-. The AO was of the view that as per the provisions of section 50C of the Act, the value adopted for stamp d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the revised return the appellant claimed that the fair market value of his share of the property as on 01.04.1981 was ₹ 386667/- and not ₹ 270258/- as taken by him in the original return. Though in his support the appellant has filed a valuation report it is in contradiction to his own valuation in the original return and for this reason alone is required to be rejected as an afterthought with the single motive of reducing tax liability. The assessee has also claimed deduction u/s.54EC of ₹ 1,00,000/- in the revised return but no details has been mentioned regarding the investment in the revised return and no evidence was placed before me and for this reason as also for the reason that the revised return was non-est, it cannot be allowed. It is therefore held that the action of the A.O.in applying Section 50C was in order and computation of capital gain made by him requires no interference. 6. In the result, the appeal is dismissed. 4. Aggrieved by the order of ld.CIT(A), assessee is now in appeal before us. 5. Before us, ld.AR for the assessee reiterated the submissions as were made before the AO and ld.CIT(A) and further submitted that before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the facts and set aside the matter to Assessing Officer to make assessment in accordance with valuation as per District Valuation Officer by observing as under: 5. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that in the instant case, the AO has made addition on the basis of the difference in the value of the property declared by the assessee as sale consideration and adopted by the stamp valuation authority. The contention of the ld.counsel for the assessee is that in terms of the provisions of section 50C(1) of the Act, where the AO finds that the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed (or assessable) by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed (or assessable) shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. The ld.counsel for the assessee submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dated 10.12.2010 is reproduced as under:- We just come to know that one open land in the same locality was sold at 5,000/- per sq.mt. Before one year ago, we are in the opinion that what we got amount @ 10,000/- per sq.mt. is true fair market value. Secondly, we are of the opinion to refer the case to the D.V.O., Surat to justify the case. There are cases of judgement of : New Kalindi Kamavati Co-Op. Housing Society Ltd. Vs. State of Gujarat Ors. 2006(2) Guj.L.R.Vol.XL VII(2). Dineshkumar Mittal Vs. ITO 193 ITR 770 (All.) Hindustan Motors Ltd. Vs. Members Appropriate Authority (2001) 249 ITR 424 (Mad.) K.R. Palanisamy Vs. UOI 306 ITR 61 (Mad.). In which the juntry value is a guideline not instrument to lay down on the assessee . 5.2. Therefore, in view of the provisions of section 50C(2) of the Act, we are of the considered view that the AO was not justified in adopting the value of the property as adopted by the stamp valuation authority without referring to the DVO for ascertaining the fair market value of the property. Therefore, the orders of the authorities below on this issue are hereby set aside and the additional ground raised by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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