Commissioner of Income Tax decision for 2013-14 assessment deleted. Case remitted to Assessing Officer for fresh assessment.

The addition made by the Commissioner of Income Tax (Appeals) for the assessment year 2013-14 was deleted. The case was remitted to the Assessing Officer with directions to conduct a fresh assessment by referring the matter to the Departmental Valuation Officer (DVO) for valuation and completing the assessment based on the DVO's valuation. The appeal was allowed for statistical purposes.

---

---

Issues:
Reopening of assessment under Section 148 for Assessment Year 2013-14, Addition of short-term capital gain, Failure to refer valuation to DVO under Section 50C.

Reopening of Assessment:
The appeal was against the order passed by the Commissioner of Income Tax (Appeals) Gandhinagar, Ahmedabad for the assessment year 2013-14. The case was reopened under Section 148 of the Income Tax Act based on the sale of an immovable property and cash deposit in the bank account.

Addition of Short-term Capital Gain:
The appellant sold co-owned property resulting in short-term capital gain. The reassessment concluded with an addition on this account. The appellant requested the valuation by the Departmental Valuation Officer (DVO) under Section 50C, which was not considered by the authorities. The appellant argued for setting aside the addition and referring the matter to the DVO.

Failure to Refer Valuation to DVO:
The appellant contended that the Assessing Officer (AO) erred in not referring the matter to the DVO under Section 50C, despite the appellant's request. The appellant relied on judgments emphasizing the mandatory nature of such reference, even without a specific request from the assessee. The Coordinate Bench's decisions highlighted the AO's duty to provide the assessee with the option to follow the course under Section 50C(2).

Judicial Precedents and Directions:
The Coordinate Bench's judgments emphasized the AO's obligation to refer valuation matters to the DVO under Section 50C(2), irrespective of the assessee's request. The judgments underscored the AO's duty to act fairly and provide the option to follow the legal course. Consequently, the matter was remitted to the AO for fresh assessment based on the DVO's valuation, ensuring a reasonable opportunity for the assessee to be heard.

Decision and Order:
Based on the legal position and judicial precedents, the addition made by the CIT(A) was deleted. The issue was remitted to the AO with directions to conduct a fresh assessment by referring the matter to the DVO and completing the assessment based on the DVO's valuation. The appeal was allowed for statistical purposes.

---