2018 (4) TMI 1519
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....uty purposes on sale of five immovable properties and circle rate for stamp duty purposes on sale of five immovable properties and Ld. CIT(A) further erred in law and on merits in confirming the sake addition u/s. 56(2)(vii) of the I.T. Act. 2. That both the lower authorities erred in law and on merits in making the addition of Rs. 3,04,99,400/- in the absence of reference to DVO although specific request was made for the same during the assessment. 3. That without prejudice under the facts and circumstances the total declared sale consideration of Rs. 4,27,12,600/- for all the five properties is the real and actual FMV against FMV adopted by AO at Rs. 7,32,12,000/-. 2. The brief facts of the case are that the assessee filed his e-r....
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....he correct FMV at Rs. 4,27,12,600/- and in case of not acceptance the same to refer the same to DVO of the Valuation Cell vide letter dated 15.11.2016 as per 3rd proviso to section 56(2)(vii) r/w section 50C(2). He further stated that the AO after noting the contention of reference to DVO, held that this request cannot be accepted as the market value of the properties are clearly mentioned on sale deed. He further stated that Ld. CIT(A) also on the issue of reference held that it is not mandatory for the AO to refer the matter to DVO mandatorily. He further stated that once the assessee makes a request for reference to DVO, it is necessary to refer the matter to DVO as per 3rd proviso to section 56(2) r/w section 50C(2). In the last, he sub....
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....essment order. The difference of Rs. 3,04,99,400/- was added u/s.69 of the I.T. Act and Ld. CIT(A) confirmed the addition by ignoring the fact that the matter of the assessee was not referred to DVO in spite of specific request made by the assessee. However, the actual purchase consideration was Rs. 4,27,12,600/- as per registered purchase deeds, signed by both the parties before the Registrar. The assessee also claimed the correct purchase consideration as well as fair market value at Rs. 4,27,12,600/-. During asstt., on being questioned, the assessee submitted the correct FMV at Rs. 4,27,12,600/- and in case of not acceptance the same, to refer the same to DVO of the valuation cell vide letter dtd.15.11.16 (copy at page no. 93 of the PB) ....