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TMI Blog2015 (12) TMI 1803X X X X Extracts X X X X X X X X Extracts X X X X ..... grievance relates to the disallowance made u/s. 14A of the Act r.w. Rule 8D though the quantum differs in both the appeals. 3. We are taking up the facts of ITA No. 1441/M/2013. While scrutinizing the return of income, the Assessing Officer noticed that the assessee is having investment in shares, bonds etc at Rs. 70,15,05,138/- on which dividend income of Rs. 64,699/- was earned and claimed exempt. The assessee was asked to explain why disallowance should not be made u/s. 14A r.w. Rule 8D. 3.1. Vide letter dated 15.7.2011, the assessee replied that the dividend is represented by only one dividend warrant and direct and indirect expenses incurred in relation to earning of this exempt income amounting to Rs. 1,736/- have already been off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation of expenses made by the assessee. We find that computation at Rs. 917/- is quite reasonable. The AO has simply rubbished this computation made by the assessee without assigning any specific reason or fallacy in the computation. In our considered opinion on the peculiar facts of the case, the addition made by the AO is unwarranted, we, accordingly, direct the AO to delete the addition of Rs. 35,07,782/- in ITA No. 1441/M/2013 and Rs. 9,27,033/- in ITA No. 1442/M/2013. With this ITA No. 1442/M/2013 is allowed. 8. The second ground in ITA No. 1441/M/13 relates to the additions made u/s. 50C of the Act. 8.1. While scrutinizing the return of income, it came to the notice of the AO that the assessee has sold 2 plots of land situated in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout considering the objections made by the assessee, the AO has completed the assessment by simply relying upon the report of the DVO. 9.1. After considering the facts and the submissions, the Ld. CIT(A) observed that sale price as per the sale deed was lower than the value assessed by the Stamp duty authorities therefore a reference was rightly made by the AO. The Ld. CIT(A) was convinced that the AO was correct in adopting the valuation of the DVO in computing the short term capital gains and confirmed the addition. 10. Aggrieved by this, the assessee is before us. 11. The Ld. Counsel for the assessee reiterated what has been stated before the lower authorities. It is the say of the Ld. Counsel that the assessee has also taken a v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sample sale in or around impugned property, therefore the value taken by the Valuation Officer also cannot be accepted. 14.1. In our considered opinion, such litigation should come to an end and therefore to put an end to the litigation, the value for plot No. 14/1 taken by the DVO at Rs. 623/- is to be reduced by 40%, the value now should be adopted is Rs. 374/-. Similarly, the value adopted for Plot No. 177 at Rs. 722/- is to be reduced by 35%, the value now should be adopted is Rs. 470/-. The AO is accordingly directed to consider these two values and recompute the Short term capital gains as per the provisions of the law. 15. In the result, the appeal filed by the assessee in ITA No. 1441/M/2013 is partly allowed and ITA No. 1442/M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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