2023 (1) TMI 1065

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....y the Assistant Commissioner of Income Tax, Circle-I(I/C), Thanjavur for the Assessment Year 2014 - 2015, u/s.143(3) r.w.s.147 of the Income Tax Act, 1961 (hereinafter "the Act") vide order dated 25.06.2019. 2. The brief facts of the case are that the Assessee/Appellant had filed his return of income for the Assessment Year 2014 - 2015 declaring a total income of Rs.21,72,210/- and agricultural income of Rs.2,74,250/- on 15.04.2015. The assessment has been subsequently reopened u/s.147 of the Act for the reasons recorded as per which the income chargeable to tax has escaped assessment. The case has been selected for scrutiny and during the course of the assessment proceedings, the Assessing Officer had noticed that the Assessee had purch....

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....Assessee submitted that the learned Assessing Officer as well as the learned Commissioner of Income Tax (Appeals) had erred in sustaining the addition made towards the difference between the consideration paid for the purchase of the property and the guideline value fixed by the SRO u/s.56(2)(vii)(b) of the Income Tax Act, 1961, even though, the matter has been referred to the DVO for determining the correct value of the property. However, the DVO has not furnished the valuation report and the Assessing Officer had completed the assessment. Therefore, the appeal is to be set aside and the matter be remitted back to the file of the Assessing Officer to redo the assessment after considering the valuation of the property determined by the DVO.....

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....uation of the property to the DVO. The Assessing Officer as per the request of the Assessee referred the valuation of the property to the DVO. However, the DVO had not submitted the report when the assessment was getting time barred and therefore, the Assessing Officer completed the assessment without waiting for the DVO's report and had made the additions towards the differential amount as per the provisions of Section 56(2)(vii)(b) of the Income Tax Act, 1961. We find that once the Assessing Officer has referred the valuation of the property to the DVO, then he ought to have waited for the DVO's report to ascertain the fair market value of the property for the purchase as per the provisions of Section 56(2)(vii)(b) of the Income Tax Ac....