2019 (4) TMI 676

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....arisen from the assessment order passed under section 143 (3) dated 11.02.2014 and Penalty order u/s. 271(1)(c) dated 22.03.2016 respectively under Income Tax Act, 1961 (in short 'the Act') by the Income Tax Officer, Ward- 8(4) Vadodara (in short "the AO"). 2. First we take up quantum appeal in I.T.A.No. 1335/AHD/2015/AY 2011-12 3. The assessee has taken 11 number of grounds of appeals which mainly relates to confirming addition of Rs. 39,69,000 under section 69A despite the facts that amount received was pertaining to sale of capital asset and assessable as capital gains under section 45 of the Act and also denial of benefit of deduction under section 54B of the Act being investment made in purchase of residential house. Ground No. 4 rel....

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....o other source of income. It was further claimed that even the AO has not established any other source of income for the assessee. The assessee has furnish valuation report dtd. 08.04.2014 for the flat sold by her. The valuation report was obtained after assessment order hence; it could not be submitted during the course of assessment proceedings. Therefore, it was urged before the CIT (A) to admit the same. However, the CIT (A) observed that why the valuation report was not obtainedbefore the sale of properties. Accordingly, the CIT (A) was of the view that there was no sufficient cause for non-production of additional evidence during the assessment proceedings and submitted during the course of appellate proceedings, Hence, the additiona....

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..... In support of this claim, the assessee has also furnishedcopy of valuation report before CIT(A). However, the same was not allowed to be admitted as same was not filed during the course of assessment proceedings. However, we find that the valuation report was obtained later on hence, it was not available at the time of assessment proceeding. Further, the lower authorities did not examine the claim of the assessee of deduction under section 54. Thus, we are of the considered opinion that the additional evidence submitted by the assessee have amaterial bearing to decide the issue. Therefore, the assessee is required to be givena fair chance and opportunity to the assessee in the interest of natural justice. Under these circumstances, it wa....

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....considering all the details. The assessee may place any evidences and judgements as he wants to supports his case. The AO will consider the claim of deduction under section 54 made by the assessee. The AO will also examine whether the enter receipts for sale proceeds of flats is required to be assessed in the hands of the assessee or only 50% being her share in property sold under consideration. The assessee shall also file its submissions along with requisite evidences with regard to all the reasons given by the AO in the assessment order, whichshall be duly considered by the AO before deciding this issue afresh. With these directions, this whole issue arising in the present appeal from assessmentorder is set-aside to the file of the AO fo....