TaxTMI 
TaxTMI 
2015 (10) TMI 1069
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....nly issue in this appeal of the revenue is against the order of CIT(A) deleting the addition made by AO by invoking the provisions of section 69B of the Act on the basis of valuation estimated by DVO. For this, revenue has raised following ground no.1: "Whether on the facts and in the circumstances of the case, the Ld. CIT(A) is correct in deleting the addition u/s. 69B in spite of the fact that the assessee invested more than the amount recorded in its books of accounts?" 3. Briefly stated facts are that the assessee has purchased two flats declaring value of Rs. 9 lacs and Rs. 10 lacs respectively in the conveyance deeds (sale deeds). The AO noticed from the sale deeds that as per circle rates, the stamp duty valu....
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....on of the value of the purchased property but is to be utilized in the limited context of arriving at the investment made in construction of a property i.e. for determining or estimating the actual cost of construction of any property by an assessee. In the above case the A.O. has used the Valuation Report for estimating the investment for purchase of a property since the Conveyance Deeds have been registered at a stamp value higher than the sale consideration. It may be mentioned here that this rnechanism is utilized for arriving at the deemed capital gains in respect of a property sold by an Assessee where the registered value by the Stamp Duty Authorities ìs hìgher than the sale consideration received by an assessee for the....
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....e is to be considered as taken as the deemed consideration by virtue of the provisions of Section 50C and the Assessing Officer has been empowered to refer the value of capital asset to the Valuation Officer and determine the deemed consideration in the hands of the seller on the basis of such Valuation Report. It is therefore seen that firstly thìs is a deeming provision wherein the sale consideration would be deemed to be that as taken by the Stamp Authorities or determined by the Valuation Ôfficer as against actual sale consideration. Secondly, this provision is only applicable for the purpose of determining capital gains in the hands of the seller and there is no provision in law to deterrnine the undisclosed investment in ....
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....is of Fair Market Value determined by the Valuation Officer in the Valuation Report is not justified. The addition made is accordingly deleted." Aggrieved, revenue came in appeal before us. 4. We have heard rival submissions and gone through facts and circumstances of the case. The facts are that the AO made addition by invoking the provisions of section 69B of the Act on the footing that the amount of difference of Rs. 31,67,500/- is undisclosed investment in these two flats being difference between the valuation made by DVO relying on figures adopted by Sub-Registrar, Kolkata who valued the property for the purpose of stamp duty and the amount of investment disclosed by the assessee in its books of account. The assessee's stand ....