TMI Blog2011 (7) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 53,70,000/- [Rs.88,70,000/- - ₹ 35,00,000/-] by applying provisions of section 50C of the I.T. Act without appreciating the facts and figures of the case. 2.1. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) of the IT Act, 1961 dated 31.12.2007 were that the assessee has sold a land and building for a consideration of ₹ 35 lacs. The AO has asked the assessee to furnish the copy of challan of stamp duty paid in respect of the transfer of land and building. It was also noticed that additional stamp duty was levied. On enquiry, Sub-Registrar Surat has informed that an additional stamp duty of ₹ 8,34,825/- was levied. On that basis, the AO has noted that in respect of the land measur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,16,458 Difference : Rs.69,53,542 The matter was carried before the first appellate authority. 3. The CIT(A) has held that the transaction in question was squarely covered by the provisions of section 50C of the Act. Hence the action of the AO was affirmed as per the following concluding paragraph:- 6.5. Taking into account such facts and circumstances of the case, and also the provisions of sec-50C of the IT Act, which have been discussed in preceding paras in considerable detail, it is held that the Assessee s case was squarely covered by the provisions of sec 50C of the IT Act, and therefore, the AO was fully justified in adopting the value of the property as assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the AO had no option but to assess the capital gain as prescribed under the Statute. 6. We have heard both the sides at some length. We have also perused the orders of the authorities below in the light of the compilation filed. Admitted factual position is that the AO had referred the matter to valuation officer, Baroda, vide his office letter dated 30th of November, 2007 as is evident from paragraph No.4.4 of the impugned assessment order. It is also evident from that para that the Departmental Valuation Report was wanting at the time when the assessment was finalised. In view of this admitted fact, we are of the view that once as per the provisions of section 50C(2) of the Act, the AO is required, as per the Statute, to refer the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to follow the provisions of section 50C of the Act, therefore, all these factual aspects can also be ascertained by the AO after due investigation. In the result, the entire issue is restored back to AO for de novo consideration, hence this ground may be treated as allowed but for statistical purposes. 7. Ground No.2 reads as under: 2. On the facts and in the circumstances of the case as well as law on the subject, the learned ACIT, Circle-3, Surat erred in making addition of ₹ 54,563/- on account of low GP without pointing out any defects. 7.1. The observation of the AO was that the assessee is in the business of textile, i.e. trading of sarees on retail basis. For the year under consideration GP was declared @ 19.92% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of addition in the light of the provisions of section 44AF of the Act. We hold accordingly and this ground may be treated as allowed for statistical purpose only. 10. Ground No.3 reads as under: 3. On the facts and in the circumstances of the case as well as law on the subject, the learned ACIT, Circle-3, Surat erred in making addition of ₹ 7,148/- paid towards LIC loan interest treating it as utilized for non business purpose. 10.1 As per AO, the assessee has claimed interest expense of ₹ 7,148/- on LIC loan. The same was disallowed which was challenged. Ld.CIT(A) has appreciated the facts of the case and held as under: 14. The submissions of the ARs do not make any sense to me. It is absolutely clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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