2013 (6) TMI 857

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....rming the action of the AO in computing the capital gain arising on transfer of factory land and building under the head "Profit & Gains of Business or Profession", instead of under the head "capital gain". 1.2 It is submitted that in the facts and circumstances of the case and in law, the profit arising on transfer of factory land and building was required to be computed under the head "capital gain". COMPUTATION OF CAPITAL GAINS 2.1 The Ld CIT (A) erred in confirming the action of the AO inarriving at the amount of capital gain at Rs. 1,04,55,000/-. 2.2.1. While doing so, the ld CIT (A) erred in confirming the action of the AO in substituting the consideration of Rs. 35 lacs, which was actually received....

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.... Counsel for the assessee brought our attention to the issues raised in the grounds and mentioned that the AO has invoked the provisions of section 50C of the Act to the 'land and building' ignoring the assessee's request for making a reference to the DVO in accordance with the provisions of section 50C(2) of the Act. Referring to the contents of para 2 and its sub-paras, Ld Counsel mentioned that DVO and the CIT (A) have not considered the objections raised by the assessee against the valuation of the land in particular. In this regard, assessee brought our attention to the written submissions to the Valuation Officers, which were placed in pages from 15 to 34 of the paper book to substantiate the claim of the assessee. Further, critically....

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.... the Ld Counsel on the impugned order of the CIT (A) also requires attention. In our opinion, the CIT (A) should have met the objections of the assessee before the valuation report given in the DVO is adopted. Further, with regard to the issue of balancing charges as well as sale value of furniture and fixtures, the order appears to be very cryptic. For example, the following is the para relating to the adjudication of issue of addition of Rs. 3 lacs on account of sale value of furniture and fixtures, which was added by the AO without any reasons, whatsoever in the assessment order. Para 3.1 is relevant in this regard, and the same reads as under: "4.0 Ground no:3 (reducing the amount of Rs. 36,79,733/- in respect of profit on Sale....