TaxTMI 
TaxTMI 
2011 (7) TMI 1194
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....rred in making addition of ₹ 53,70,000/- [Rs.88,70,000/- - ₹ 35,00,000/-] by applying provisions of section 50C of the I.T. Act without appreciating the facts and figures of the case. 2.1. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) of the IT Act, 1961 dated 31.12.2007 were that the assessee has sold a land and building for a consideration of ₹ 35 lacs. The AO has asked the assessee to furnish the copy of challan of stamp duty paid in respect of the transfer of land and building. It was also noticed that additional stamp duty was levied. On enquiry, Sub-Registrar Surat has informed that an additional stamp duty of ₹ 8,34,825/- was levied. On that basis, the AO has noted that ....
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....he matter was carried before the first appellate authority. 3. The CIT(A) has held that the transaction in question was squarely covered by the provisions of section 50C of the Act. Hence the action of the AO was affirmed as per the following concluding paragraph:- "6.5. Taking into account such facts and circumstances of the case, and also the provisions of sec-50C of the IT Act, which have been discussed in preceding paras in considerable detail, it is held that the Assessee's case was squarely covered by the provisions of sec 50C of the IT Act, and therefore, the AO was fully justified in adopting the value of the property as assessed by the SVA at ₹ 88,77,000 as the full value of the sale consideration, for the purpose of calcu....
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....d both the sides at some length. We have also perused the orders of the authorities below in the light of the compilation filed. Admitted factual position is that the AO had referred the matter to valuation officer, Baroda, vide his office letter dated 30th of November, 2007 as is evident from paragraph No.4.4 of the impugned assessment order. It is also evident from that para that the Departmental Valuation Report was wanting at the time when the assessment was finalised. In view of this admitted fact, we are of the view that once as per the provisions of section 50C(2) of the Act, the AO is required, as per the Statute, to refer the matter to Valuation Officer where the assessee claims that the stamp valuation authority has not correctly ....
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....ertained by the AO after due investigation. In the result, the entire issue is restored back to AO for de novo consideration, hence this ground may be treated as allowed but for statistical purposes. 7. Ground No.2 reads as under: 2. On the facts and in the circumstances of the case as well as law on the subject, the learned ACIT, Circle-3, Surat erred in making addition of ₹ 54,563/- on account of low GP without pointing out any defects. 7.1. The observation of the AO was that the assessee is in the business of textile, i.e. trading of sarees on retail basis. For the year under consideration GP was declared @ 19.92% as against the GP rate at 29.67%. Due to the said variation, certain enquiries were raised and thereafter the GP w....