TaxTMI 
TaxTMI 
2015 (9) TMI 1227
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....ces of the case in sustaining the addition made by the AO on the basis of circle rate u/s. 50C but in whole disregard of explanation and evidences placed on the record by assessee. (ii) Because, on one side ld. CIT(A) failed to consider the specific instances placed by the assessee in support of Market rate being lower than circle rate and on the other hand failed to admit the valuation report in terms of rule 46A, hence order is arbitrary. (iii) Because, Ld. CIT(A) grossly erred in holding that, it is not mandatory for AO refer the matter (dispute about market value) to DVO in terms of section 50C(2) of the Act and the same could have been so referred only when assessee would have filed Valuer's report, hence, action ....
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.... plots for a sale consideration of Rs. 20,01,800/-, but the Circle Rate of the plot was Rs. 35,68,000/-. The AO asked the assessee why section 50C of the I.T. Act should not be applied in the case of the plots sold by the assessee company in the year under consideration. In response to the same, the assessee filed reply dated 20.12.2010 and stated that the rate adopted by the AO is higher than the prevailing market rate in the area. As a proof of prevailing market rate, assessee has filed certified copies of some of the deeds executed by other parties. Assessee requested the AO that prevailing fair market value of the property sold on lower than the circle rate declared by the Registration Authority and therefore, the sale consideration so ....
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....ed that the matter may be sent back to the AO with the direction to refer the matter for valuation to the DVO and thereafter decide the issue in dispute Denovo and pass a speaking order. In support of his contention, he cited the following judgments.:- (a) Anil Kumar Jain vs. ITO (2013) 143 ITD 659 : 34 Taxmann.com 259 (Del) (b) Sarwan Kumar vs. ITO (2014) 150 ITD 289 : 45 Taxmann.com 16 (Del) (c) Appadural Vijayaraghwan vs. JCIT (2014) 369 ITR 486 taxmann.com (Madras) 7. On the contrary, Ld. DR relied upon the orders of the revenue authorities and stated that the Revenue Authorities have passed the well reasoned order, as per the provisions of the law, therefore, he strongly opposed the request of the assessee....
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.... High Court, The Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-sections(2), (3), (4), (5) and (6) of section 16A clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, Sub-section (5) of section 24, Section 34AA, section 35 and section 37 of the Wealth Tax Act, 1957 (27 of 1957), shall with necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the AO under sub-section (1) of section 16A of that Act." 8.2 Keeping in view of the aforesaid provisions of law, I am of the considered opinion that the assessee has dispute before the AO the value adopted by the St....
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.... has also sought the Remand Report from the AO and did not admit the additional evidence produced by the assessee by stating that the assessee did not produce the same during the course of assessment proceedings. In my opinion, this is contrary to the principles of natural justice and the provisions of Rule 46A of the I.T. Rules, 1962. The evidence filed by the assessee is very much relevant for the proper decision on the issue in dispute. Secondly, as per the provisions of section 50C(2) of the I.T. Act, as reproduced above, when the assessee made claim before the AO that the value adopted or assessed by the Stamp Valuation Authority was higher than the fair market value of the property and this is also not disputed by the assessee in appe....