TaxTMI 
TaxTMI 
2019 (12) TMI 495
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....the basis of DVO report received subsequent to passing of assessment order u/s 143(3) of the Act dated 27/12/2016 and in passing order u/s 154 of the Act dated 22/08/2017. 2. That on the law and in the facts and circumstances of the case the ld. Lower authorities grossly erred in calculation long term capital gain at Rs. 75,25,770/- as against Rs. 14,71,577/- adopted by the assessee. 2.1 That on the law and in the facts and in the circumstances of the case the ld. Lower authorities grossly erred in adopting the fair market value of the property as at 01/04/1981 at Rs. 1,57,000/- as against Rs. 8,01,749/- adopted by the assessee. 3. The appellant craves leave to add, alter, modify or amend any ground on or before the date of hearing." The assessee has also raised additional ground, which reads as under: "That the ld. A.O. grossly erred in referring the matter to the ld. Departmental Valuation Officer u/s 55A of the Act which was beyond the scope of Limited Scrutiny Assessment and thus entire action is bad in law, nullity and void and deserves to be quashed and set aside." 2. We have heard the ld counsel of the assessee as well as the ld DR and considered the relevant mater....
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.... (ii) Sarvajit Bhatia Vs ITO, Faridabad dated 21/08/2019 passed by the Hon'ble ITAT, New Delhi. (iii) Shri Vijay Kumar Vs ITO, Patiala dated 12/09/2019 passed by ITAT, Chandigarh. (iv) Lokesh Sadashiv Shetty Vs ITO, Ahmednagar, dated 20/02/2019 passed by ITAT, Pune. 5. On the other hand, the ld DR has submitted that when the scrutiny assessment was taken up on the issue of sale consideration of the property sold by the assessee as well as the deductions claimed by the assessee under Chapter-IV of the Act then the determination of the fair market value of the property is very much within the scope of scrutiny assessment. 6. We have considered the rival submissions as well as relevant material on record. There is no dispute that the case of the assessee was selected for limited scrutiny under CASS and the scope of limited scrutiny is discernable from the notice issued U/s 142(1) dated 07/04/2016 as under: "Specific queries raised, for which information to be furnished: Your ITR has been selected for LIMITED scrutiny under CASS for the following reasons: 1 Large deduction claimed u/s 54B, 54C, 54D, 54G, 54GA 2 Large value sale of consideration of property in ITR is les....
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.... is as under: "Scrutiny Assessments-some important issues and scope of scrutiny in cases selected through Computer Aided Scrutiny Selection ('CASS')-reg. The Central Board of Direct Taxes ('CBDT'), vide Instruction No.7/2014 dated 26.09.2014 had clarified the extent of enquiry in certain category of cases specified therein, which are selected for scrutiny through CASS. Further clarifications have been sought regarding the scope and applicability of the aforesaid Instruction to cases being scrutinized. 2. In order to facilitate the conduct of scrutiny assessments and to bring further clarity on some of the issues emerging from the aforesaid Instruction, following clarifications are being made: i. Year of applicability: As stated in the Instruction No.7/2014, the said Instruction is applicable only in respect of the cases selected for scrutiny through CASS-2014. ii. Whether the said Instruction is applicable to all cases selected under CASS: The said Instruction is applicable where the case is selected for scrutiny under CASS only on the parameter(s) of AIR/CIB/26AS data. If a case has been selected under CASS for any other reason(s)/parameter(s) besides the AIR/CIB/26AS da....
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....n binding in such cases. (For the present purpose, 'Metro charges' would mean Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Ahmedabad). 4. The Board further desires that in all cases under scrutiny, where the Assessing Officer proposes to make additions or disallowances, the assessee would be given a fair opportunity to explain his position on the proposed additions/disallowances in accordance with the principle of natural justice. In this regard, the Assessing Officer shall issue an appropriate show-cause notice duly indicating the reasons for the proposed additions/disallowances along with necessary evidences/reasons forming the basis of the same. Before passing the final order against the proposed additions/disallowances, due consideration shall be given to the submissions made by the assessee in response to the show-cause notice. 5. The contents of this Instruction should be immediately brought to the notice of all concerned for strict compliance. 6. Hindi version to follow. Sd/- (Ankita Pandey) Under Secretary to Government of India" 14. With Instruction 7 of 2014, the Board has made it specifically clear that the scope of enquiry should be limited to ve....
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....cation and notice u/s 143(2), after genera ion from AST, is issued to the taxpayer with the remark 'Selected under Computer Aided Scrutiny Selection (CASS)". The functionality in AST is being modified suitably to flag the reasons for scrutiny selection in AIR/CIB/26AS cases. This functionality is expected to be operationalised by 15th October, 2014. Further, the Assessing Officer while issuing notice under section 142(1) of the Act which is enclosed with the first questionnaire would proceed to verify only the specific aspects requiring examination/verification. In such cases, all efforts would be mad to ensure that assessment proceedings are completed expeditiously in minimum possible number of hearings without unnecessarily dragging the case till the time-baring date. 4. In case, during the course of assessment proceedings it is found that there is potential escapement of income exceeding Rs. 10 lakhs (f non -metro charges, the monetary limit shall be Rs. 5 lakhs) on any other issue(s) apart from the AIR/CIB/26AS information based on 14 which the case was elected under CASS requiring substantial verification, the case may be taken u for comprehensive scrutiny with the appro....