Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2018 (7) TMI 133

n reference of matter to DVO - Applicability of provisions of Section 153C - peririod of limitation - Held that:- The courts time and again held that reference u/s 153C(2) is mandatory and the AO having failed to follow the provisions of the Act, he should not be given one more chance to refer the matter to the DVO. In the case of Manish Maheshwari vs. ACIT and Anr. (2007 (2) TMI 148 - SUPREME COURT OF INDIA), the provisions of Section 153C deserves that if the AO not recorded a satisfaction for the issue of notice 153C of the Act, the proceeding deserves to be quashed rather than giving the AO another chance to record proper reasons, when the AO not followed the procedure in law, the addition made deserves to be deleted. - The lower au .....

X X X X X X X

Full Text of the Document

X X X X X X X

CIT(A)-2, Agra has been arbitrary and unjust in upholding the value of ₹ 2,47,23,000 adopted by stamp valuation authority, as fair market value of the property sold by the appellant, though the same was abnormally higher. The actual sale consideration of ₹ 25,90,500 declared by the appellant, which was representing true and correct fair market value should have been adopted. 5. That the Ld. CIT(A)-2, Agra has completely ignored that once the appellant had objected before AO that value adopted by valuation authority exceeds the fair market value of the property sole on the date of transfer, then the AO was duty bound to refer the valuation to the Valuation Officer and in case he failed to do so, he was legally bound to accept the .....

X X X X X X X

Full Text of the Document

X X X X X X X

order to sustain the additions made by the Assessing Officer. 7. The counsel for the assessee submitted that the circle rate adopted by the AO for computation of fair market value of the subject immovable property is much higher than the actual value of sale consideration; that the assessee has sold the immovable property at the actual market rate of ₹ 25,90,500/- of his share of properties sold by the assessee as against the circle rates of State Government quoted during the year under consideration at ₹ 2,47,23,000/- of the properties as per the chart submitted along with the reply filed before the AO (APB-Pgs,3-4); that in pari materia facts, a valuation report sought from DVO by the ITO2(3)(4), Lalitpur in the case of Shri C .....

X X X X X X X

Full Text of the Document

X X X X X X X

on the following case laws: i) ACIT 5(1), Hyderabad vs. Lalitha karan, Hyderabad in ITA No.1130/Hyd/2015 (Trib. Hyd.) ii) Income Tax Officer, Moradabad vs. Aditya Narain Verma (HUF) Moradabad in ITA 4166/Del/2013 (Del. Trib) iii) ITO vs. Pawan Kumar Gupta (2011) 43 SOT 42 (Trib. Delhi) iv) Raj Kumar Jain vs. ACIT, (1994) 50 ITD 1 (Alld. Trib) v) DCIT vs. Rohtas Projects Ltd., (2006) 100 ITD 113 (Trib. Lkw) vi) ACIT vs. Anima Investment Ltd. 73 ITD 125 (Trib. Del) 9. The Ld. DR submitted that the CIT(A) could have remanded the issue to the AO with the direction to refer the issue of valuation of property to the departmental valuation officer and the then accordingly decided. He again submitted before us that the matter may be restored to th .....

X X X X X X X

Full Text of the Document

X X X X X X X

er value than the sale consideration, therefore, while arriving at the fair market value, is found correct and this aspect was required to be taken into consideration by the AO which he had not addressed. It is further seen that the assessee has referred to the provisions of Section 50C of the Act which were mandatorily required to be followed by the AO. However, the AO while adopting value as per circle rates of the State Government, brushed aside the submission of the assessee and the provisions of law. As such, the fair market value of the property was not at all taken into consideration. Though it was statutory duty laid down upon the AO to obtain the valuation report by referring the matter to the DVO which he did not abide. The crux o .....

X X X X X X X

Full Text of the Document

X X X X X X X

n made deserves to be deleted. 14. The lower authorities passed the order in summary manner without going into the merits of the case and analyzing the legal issue involved, the applicability of Section 50C(2) (a) of the Act, in a particular. We further find that the AO has not found any adverse material evidence to indicate that assessee has received any excess money over and above the sale consideration, in the return of income. In the light of the peculiar facts of this case and in the absence of the DVO report, we are of the considered opinion that the assessee cannot put to travel up facing virtual trial to appear before the AO after three years to prove that the sale price declared by him was reasonable. 15. In view of the above, we a .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||