Tribunal upholds order under Income Tax Act 1961

The Tribunal upheld the impugned order under section 263 of the Income Tax Act, 1961, dismissing the appeal filed by the assessee regarding the validity of the notice and the stamp value of an immovable property acquired. The order was pronounced on June 12, 2023.

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Issues Involved:
The judgment involves the issue of validity of the notice under section 263 of the Income Tax Act, 1961 and the merits of the section 263 proceedings regarding the stamp value of an immovable property acquired by the assessee.

Validity of Notice under Section 263:
The appeal was agitating the Order under section 263 of the Income Tax Act, 1961 dated 03.3.2021 by the Principal Commissioner of Income Tax-1, Kochi. The notice issued under section 263(1) of the Act dated 25.01.2021 was challenged by the assessee for not quoting the Document Identification Number (DIN) as mandated. However, the absence of DIN in the notice was held to be a technical argument and of no assistance as the notice was to put the assessee to notice of the proceedings under section 263 and provide an opportunity of hearing.

Merits of Section 263 Proceedings:
The assessee's objection on the merits of section 263 proceedings was related to the stamp value of the immovable property acquired during the relevant year. The assessment was set aside by the Principal Commissioner as no enquiry was made regarding the applicability of sec. 56(2)(vii)(b)(ii) of the Act on the acquisition of land. The failure to enquire where warranted would render the order erroneous and prejudicial to the interests of Revenue, justifying revision under section 263. The revisionary authority directed the Assessing Officer to examine the matter afresh and decide in accordance with the law.

Assessment of Stamp Value:
The contention that 'purchases' do not amount to 'receipt' and the matter should have been referred to the Valuation Officer was not appreciated by the Tribunal. The revisionary authority did not adjudicate on the merits but only set aside the assessment for fresh examination. The stamp value being higher than the stated sale consideration implies a prima facie case of under-valuation, and the burden to show otherwise lies on the assessee. The argument that 'purchase' is not 'receipt' was considered misplaced without a legal basis. The Tribunal upheld the impugned order and dismissed the appeal.

Conclusion:
The Tribunal found no reason for interference with the impugned order and upheld it, dismissing the appeal filed by the assessee. The order was pronounced on June 12, 2023, under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963.

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