Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

INCOME-TAX OFFICER Versus SMT. RUCHITA GIR

2015 (11) TMI 794 - ITAT HYDERABAD

Computation of capital gains under section 50C - adoption of Fair market value proposed by the District Valuation Officer - Held that:- Grievance of the Revenue in this appeal that the learned Commissioner of Income-tax (Appeals) ought not to have deleted the addition inasmuch as the objections raised by the assessee were already considered by the District Valuation Officer in his report and without confronting the District Valuation Officer with the objection raised by the assessee the Commissi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

submitted by the District Valuation Officer. And accordingly the matter is remitted back to the file of the Assessing Officer for de novo assessment - Decided in favour of revenue for statistical purposes. - I. T. A. No. 19 /Hyd/ 2014 - Dated:- 1-7-2015 - SMT. ASHA VIJAYARAGHAVAN (Judicial Member) and INTURI RAMA RAO (Accountant Member) R. Clement Ramesh Kumar for the appellant. K. A. Sai Prasad for the respondent. ORDER The order of the Bench was delivered by 1. Inturi Rama Rao (Accountant Mem .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ome-tax (Appeals) ought to have appreciated the fact that the objections raised by the assessee during the appeal were already taken into accounts by the District Valuation Officer while arriving at the fair market value." 2. The brief facts of the case are that the respondent-assessee is an individual and filed her return of income for the assessment year 2009-10 on July 22, 2009 declaring an income of ₹ 16,64,308. Against the said return of income, assessment was completed by the In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e sale consideration of ₹ 2,12,41,000 and accordingly computed capital gains. The assessee objected to the adoption of SR value on the ground that the property sold was anti vastu, rocky and unevenly shaped. Therefore, the Assessing Officer referred the matter to the valuation cell of the Department. However, since the valuation report was not received by the time of completion of the assessment proceedings, the Assessing Officer adopted the value as per the SRO records for the purpose of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the District Valuation Officer before the Commissioner of Income-tax (Appeals) and disagreed with the reasoning given by the District Valuation Officer that bigger plot fetch lesser rate and filed a copy of the sale deed whereby the other half of the plot had been sold in June, 2008 by the owner to the same purchaser at ₹ 30,000 per sq. yard. This was filed as an additional evidence before the Commissioner of Income-tax (Appeals) which was forwarded to the Commissioner of Income-tax (Appe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y argued before us that the learned Commissioner of Income-tax (Appeals) without hearing the District Valuation Officer ought not to have deleted the addition in the matters requiring technical advice and such matters should be decided only by the technical experts and vehemently argued that the Commissioner of Income-tax (Appeals) without hearing the District Valuation Officer ought not to have deleted the addition. 7. On the other hand learned counsel for the assessee placed heavy reliance on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me-tax (Appeals) should not have deleted the addition. We find considerable merit in the submission of the learned Departmental representative. The hon'ble Bombay High Court involving identical facts of the case in the case of CIT v. Prabhu Steel Industries Ltd. [2014] 3 ITR-OL 229 (Bom) held as follows vide paras 8, 9, 10 (page 233) : "8. The hon'ble apex court in Smt. Amiya Bala Paul v. CIT [2003] 262 ITR 407 (SC) ; [2003] 6 SCC 342, considered the question of valuation of asset q .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessing Officer under section 16A of the Wealth-tax Act does not retain the power to enquire and the entire process of the inquiry therein is, solely conducted by the Valuation Officer alone, whose responsibility itself is to arrived at a correct valuation of the asset. The said inquiry by the Valuation Officer is distinct from the power of the Assessing Officer, who is otherwise invested with the powers to enquire into the actual wealth of an assessee. For the purpose of the present adjudicat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2) enables the Valuation Officer to serve on the assessee a notice requiring him to produce accounts, records or other documents. Sub-section (3) obliges the Valuation Officer to pass an order in writing if, he is of the opinion that the return contained a correct declaration of valuation of the asset. Copy of this order is required to be sent to the Assessing Officer and to the assessee. Under sub-section (4), when his opinion is otherwise, the Valuation Officer has to serve a notice on the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has to proceed to complete the assessment in conformity with the assessment of the Valuation Officer. It is, therefore, apparent that these provisions mandate that after the Assessing Officer receives report of the Valuation Officer under section 50C, he has to act in conformity with the valuation of the capital asset worked out therein. 10. Section 23A of the Wealth-tax Act appears in Chapter VI deal ing with appeal, revision and reference. Section 23 speaks of appeals to the Deputy Commission .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 50C(2) is made appealable even for the purpose of the Income-tax Act, 1961, as per the scheme therein. Sub-section (6) of section 23A stipulates that when the valuation of any asset is objected to in an appeal, the Commissioner (Appeals) has to extend an opportunity of hearing to the Valuation Officer, who has made order under section 16A. Sub-section (7) enables such Commissioner to direct further inquiry to be made by the Assessing Officer or by the Valuation Officer. Section 50C makes both .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h-tax Act, 1957 ; the Appellate Tribunal has to extend opportunity of hearing to the Valuation Officer, and this provision is in pari materia with section 23(6) above. Therefore, when order of the Commissioner of Income-tax (Appeals) is questioned in further appeal before the Income-tax Appellate Tribunal, the Income- tax Appellate Tribunal has to keep in mind the provisions of section 24(5) of the Wealth-tax Act, 1957, and has to extend an opportunity of hearing to the Valuation Officer. Sectio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in a court under the Code of Civil Procedure when trying a suit in respect of the following matters. Those powers are-(a) discovery and inspection ; (b) enforcing the attendance of any person, including any officer of a banking company and examining him on both ; (c) compelling the production of books of account and other documents ; and (d) issuing commissions. Sub-section (3) enables the Valuation Officer to impound and retain in its custody any books of account or other documents. Under sub- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

roversy regarding determination of the market value of the property with all necessary powers. Its order or report is made binding on the Assessing Officer and thus he enjoys equivalent status. As per the statutory scheme when the report/order of the Valuation Officer under section 50C(2) is objected to by the assessee, the Commissioner of Income-tax (Appeals) or the Income-tax Appellate Tribunal are obliged to extend an opportunity of hearing to such Valuation Officer. A perusal of the order of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Valuation Officer. The Income-tax Appellate Tribunal has allowed the appeal of the assessee against the order of the Commissioner of Income-tax (Appeals) and that the order of the Commissioner of Income-tax (Appeals) was in favour of the present appellant-Depart ment. The Income-tax Appellate Tribunal has in paragraph 8 found faults with the report/order of the District Valuation Officer. Admittedly, the said Valuation Officer has not been heard and no opportunity was extended to him. Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version