2009 (4) TMI 954

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.... the residential premises of assessee as well. A notice under section 153A was issued on 24.8.2006 to the assessee. Assessee purchased a property of Rs. 14 lacs excluding stamp duty as her 1/8th share of property at Roop Nagar, Delhi. The Assessing Officer, during the proceedings, referred the matter to the Departmental Valuation Officer under section 142A who determined the value of the property at Rs. 2,00,12,792/- and 1/8th share of the assessee worked out at Rs. 25,01,600/-. The difference of Rs. 11,01,600/- (Rs.25,01,600/- minus Rs. 14,00,000/-) was added to the income of the assessee. 3. The matter was carried in appeal. The CIT (Appeals) reduced the value of the assessee's share to Rs. 15,37,500/- and confirmed an addition of Rs. ....

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.... u/s 142A in order to make the addition u/s 69 or 69B, whichever is applicable. In the present case. the relevant property was purchased by the assessee during the year under consideration for Rs. 15 lakhs and the amount of the said consideration was paid out of its disclosed sources as accepted even by the AO in the reassessment, A perusal of the assessment order, however, shows that there was no reference whatsoever made by the AO to any material/evidence/information on the basis of which it could be said that the said consideration shown by the assessee was understated and that anything above what was disclosed by the assessee had actually been paid as consideration. The condition precedent for making a reference to the DVO by invoking t....

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....d value of the shares, the addition made on account of deemed capital gains was not sustainable. 17. It is also observed that the valuation made by the DVO of the property purchased by the assessee on the higher side was challenged by the assessee by pointing out specific defects in the said valuation. One of such defects pointed out by the assessee was about the method of valuation adopted by the DVO in his report. As pointed out by the learned counsel for the assessee at the time of hearing before us, the property in question was fully let out and the total annual rent in respect thereof received during the relevant period was only Rs. 2,000/-. Keeping in view this undisputed factual position, the appropriate method to determine ....