2019 (9) TMI 1415

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.... 01.10.2018 for the assessment year 2014-15. 2. Mr. G. Baskar & Mr. I. Dinesh represented on behalf of the Assessee and Mr. AR.V. Sreenivasan represented on behalf of the Revenue. 3. It was submitted by ld.AR that the assessee had purchased a property being a residential site at Sholingarnallur village, Tambaram Taluk, Kancheepuram district for a consideration of Rs. 1,44,00,000/- vide Sale Deed dated 11.09.2013. The assessment u/s.143(3) of the Act was completed on 29.12.2016 wherein addition of Rs. 7,40,000/- towards the source of purchase of the said property had been disbelieved and added back to the total income of assessee. It was a submission that the assessment was completed on 29.12.2016. Subsequently, a show cause notice u/s....

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....evised in 2017 was considered, the guideline value of the property purchased came to only Rs. 1,28,64,000/-. It was submitted that the PCIT did not accept the contentions of the assessee and applying the provisions of section 56(2)(vii) of the Act, ld.PCIT directed the Assessing Officer to assess the differential amount of Rs. 24,00,000/- and pass a fresh assessment order. It was a submission that the fact that the Tamil Nadu Government had reduced the rates itself showed that the guideline value as prescribed in 2012 with effect from 01.04.2012 by the State Government was excessive. It was a prayer that the addition as made by the PCIT be deleted. 4. In reply, the ld.DR vehemently supported the order of PCIT. It was a submission that th....

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....y Rs. 14.4 lakhs and additional Rs. 2.4 lakhs admittedly would not be challenged by the assessee, especially when considering the rigmarole in respect of filing the appeal for reduction of the stamp duty valuation. But that cannot be the ground for making a direct addition in respect of the provisions of section 56(2)(vii) of the Act. Further, the fact is very clear that the Government of Tamil Nadu has found that the guideline value fixed earlier with effect from 01.04.2012 was very much on the higher side and it consequently reduced the same in 2017, which clearly shows that the assessee should be given the benefit of the revised valuation. Once the revised valuation is taken into consideration, the guideline value in respect of the prope....