2023 (2) TMI 642

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....and on the facts in confirming the disallowance of Rs. 25,39,908/- on account of expenses incurred by the assessee to keep its corporate entity intact and ignoring the submission made by AR of appellant, as laid down by the jurisdictional Income Tax Appellate Tribunal - Delhi in case of Jng Builders Pvt. Ltd. New Delhi vs. Department of Income Tax ITA No. 3873/Del/2011. 2. That on the facts and circumstances of case and in law, the learned CIT(Appeals) has erred in law and on the facts in confirming disallowance of expenses incurred during the period of temporary suspension to keep business alive and revive the same at the earliest opportunity and ignoring the intention to revive by paying salary and wages to staff and other financial cos....

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.... of fair market value of property as per provision of section 50C(2) of act." 3. The facts are that the assessee company is stated to have been incorporated on 17.10.1990. During the year the assessee did not carry out any business activity but filed e-return on 31.03.2017 declaring income of Rs. 23,16,730/- for AY 2015-16. The case was selected for limited scrutiny through CASS to verify whether capital gain/loss on sale of property has correctly been shown in ITR and whether sales turnover / receipts have been offered correctly to tax. 4. During assessment proceedings, on being asked by the Ld. Assessing Officer ("AO") the assessee filed details/documents. The Ld. AO observed that the assessee claimed a loss of Rs. 25,39,908/- during th....

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....ermine the Fair Market Value (FMV) of the property. However, the Ld. Addl. CIT did not give any clear-cut direction to the Ld. AO to refer the property for valuation of FMV. Holding that it is not mandatory for the Ld. AO to refer the property for valuation of FMV, he made the impugned addition of Rs. 51,44,000/- to the income of the assessee under section 50C of the Act. Accordingly, the Ld. AO completed the assessment on total income of the assessee at Rs. 1,00,00,640/- vide is order dated 12.12.2017 under section 143(3) of the Act. 5.1 The appeal of the assessee on the addition of Rs. 51,44,000/- under section 50C met the same fate before the Ld. CIT(A) who also held that it is the discretion of the Ld. AO to refer or not to refer to DV....