TaxTMI 
TaxTMI 
2023 (7) TMI 801
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...., 1961 (the "Act") pertaining to Assessment Year ("AY") 2019-20. 2. The assessee has raised the following grounds of appeal: "1. That the final assessment order dated 20/12/2022 passed by Deputy Commissioner of Income Tax, Circle, International Taxation 2(2)(2) ('Assessing Officer or AO ) under section 143(3) r.w.s. 144C(13) of the income Tax Act 1961 ('Act') in pursuance to directions of Dispute Resolution Panel ('DRP') is arbitrary, unjust and illegal on various factual and legal grounds including but not limited :o the following: a) Reference as made by the AO under section 142A of the Act to Department's Valuation Officer ( DVO ) for determining fair market value ('FMV') of house property as on 01/04/2001 was unlawf....
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.... valuer's reports. 4. That the FMV of 1/3rd share of house property as on 01/04/2001 declared by the Appellant cannot be restricted/reduced by the AO/DRP in the case of the Appellant since the same value as declared by the other two joint co-owners of such house property for their respective 1/3rd share each stand accepted in their respective assessments. 5. That without prejudice to above grounds, the indexed cost of acquisition of the house property as adopted by the AO/DRP at Rs. 1,03,43,551 for Appellant's 1/3rd share s inadequate and the addition of Rs. 2,23,23,116 as made towards long term capital gain is very excessive. 6. That the levy of interest under section 234D of Rs. 9,00,769 is illegal and at any ra....
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....01. The DVO determined the FMV at Rs. 1,10,82,377/- as against Rs. 3,50,16,612/- as per the assessee. Relying on the report of the DVO, the Ld. AO computed the capital gain at Rs. 4,96,56,449/- as against Rs. 2,73,33,333/- declared by the assessee resulting in addition of Rs. 2,23,23,116/- to the income of the assessee. 3.2 Accordingly, the Ld. AO passed a draft assessment order under section 144(C)(1) r.w.s 143(3) of the Act on 23.02.2022. 3.3 On receipt of the said draft assessment order, the assessee filed objections before the Ld. Dispute Resolution Panel ("DRP"). The Ld. DRP vide order dated 09.11.2022 directed the Ld. AO to dispose of the specific objections on the valuation report of the DVO by passing a speaking order. 3.4 ....
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.... is jointly co-owned by her brother Mr. Janardhan Kapoor and sister Ms. Poonam Sachdev in whose cases assessments have been completed under section 143(3) of the Act. In both the cases the FMV of the property as on 01.04.2001 has been accepted as determined by the registered valuer and therefore it is improper to take a different view in the case of the assessee. 7. The Ld. CIT(DR) defended the order of the Ld. AO who, according to him, is empowered to make reference to the DVO for determining the FMV of a property. Since the impugned addition is based on the report of the DVO, the same is sustainable. The Ld. CIT(DR) argued that each assessee is separate. Therefore finding in the case of other co-owners cannot have any adverse impact on....
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....on the Ld. AO cannot invoke the provisions of section 142A of the Act without assigning tangible basis giving rise to doubt on FMV adopted by the assessee on the basis of the report of the registered valuer. 8.1 It is observed that the assessee offered her detailed comments on the DVO's valuation report vide letter dated 15.02.2022 to the Ld. AO (copy at pages 117-120 of the Paper Book) incorporating therein extracts of letter dated 13.10.2021 filed before DVO and asserting that no deficiency in the report of the registered valuer has been pointed out by the DVO. Moreover, the DVO failed to consider the specific features of the property commanding higher value. It was also stated therein that the DVO did not provide copies of sale deed o....
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....on sale of the same residential house in which he had 1/3rd share. The Ld. AO noted that this property was inherited by the assessee from his parents who had purchased the property in 1967/69. Since the property was purchased prior to 1st April, 2001, the assessee got it valued from a registered valuer and used the value for determining tax payable on long term capital gain arising from this transaction. The Ld. AO accepted the FMV as on 01.04.2001 as determined by the registered valuer of the assessee. Similarly, in the case of Ms. Poonam Sachdev, sister of the assessee, the assessment for AY 2019-20 was completed on 28.09.2021 after complete scrutiny under CASS (copy at page 221-222 of the Paper Book) without making any addition, though t....