2017 (3) TMI 389

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....or AY 2008-09 and inter alia reported sale of its capital asset - acquired in 1974. Although assessment was completed, further appeals were pending on behalf of both the parties before the ITAT. In the meanwhile, on 06.11.2008, a search and seizure operation was initiated under Section 132 of the Income Tax Act, 1961 (in short the Act) in the assessee's premises; pursuant to this it received notice under Section 153A on 08.07.2009. The assessee filed returns for the relevant year i.e. AY 2008-09 declaring Rs. 7,54,540/-. 3. Doubting the assessee's valuation of the property sold during the relevant period i.e. C-218, Mayapuri, Phase-II, New Delhi, the AO referred the issue to the District Valuation Officer (DVO) under Section 142A of t....

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....erred that the case of the appellant does not attract the special provisions for computation of capital gain u/s 50C of the IT Act. Moreover even if the valuation for stamp duty purposes were higher than the actual consideration it was incumbent upon the AO to have given an opportunity and made a reference for valuation if objected upon by the assessee to the valuation officer's report called for u/s 55A of the Act. No such mandatory procedure has been followed and therefore there can be no case for making addition to income u/s 50C of the IT Act, as the valuation report in this case has been obtained u/s 142A of the Act. It is also noted that the above valuation report u/s 142A has not been confronted to the appellant, who in any case h....