TaxTMI 
TaxTMI 
2023 (8) TMI 144
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....artly confirming the action of Assessing Officer by adopting cost of construction of the property at Rs. 9,490/- per sq. meter being average rate of cost of construction as per DVO of Rs. 13,600/- and as per the registered valuer of Rs. 5,380/-. 2. It is, therefore, prayed that the above assessment framed u/s 143(3) of the Act and/or addition made by Assessing Officer and confirmed by learned Commissioner of Income Tax (Appeals) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts of the case are that the assessee is engaged in the business of manufacturing of grey cloths, filed his return of income for A.Y. 2015- 16 on 23/09/2015....
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....ill finalization of assessment order. The matter was going to be time barring, accordingly, the Assessing Officer made addition of Rs. 25,41,575/- under the head "income from other sources". 3. Aggrieved by the additions in the assessment order, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee besides challenging the addition on merit, also raised specific ground that the assessee purchased very old buildings in a damaged condition. Such fact was not appreciated by the Assessing Officer and not allowing depreciation while consideration the value of property. The assessee also filed detailed written submissions. The submission of assessee is recorded in para 5 of order of ld. CIT(A). The assessee in its s....
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....t evidence. No single instances of comparables were given. Report of DVO is not based on evidence. The location of assessee's properties at site are totally different. The assessee also objected against the instances of comparables of open plots referred by DVO in his report. 4. The ld. CIT(A) after considering the submission of assessee, report of DVO and the report of Government Approved Valuer furnished by assessee, noted that during the assessment, the Assessing Officer noted that the assessee purchased immovable properties in which he had 25% share of Rs. 50.22 lacs. The Assessing Officer on the basis of report of Stamp Valuation Authority, found difference in valuation of Rs. 21,49,500/- and Rs. 20,04,200/-. The plot No. 4/B was valu....
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....lot No. 4/B without any comparable instances (including cost of construction). Hence, the report of registered valuer was also not accepted. However, the ld. CIT(A) find that the assessee has objected the report of DVO @ Rs. 13,600/- per square meter for 20 years old building is on higher side and he has shown the value on the basis of registered valuer at Rs. 5,380/- per square meter. Accordingly, the ld. CIT(A) adopted the average of both the valuation reports and adopted value @ Rs. 9,490/- per square meter and directed to recalculate the fair market value thereby granted partial relief to the assessee. Further aggrieved, the assessee has filed present appeal before the Tribunal. 6. I have heard the submissions of the learned Authorised....
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.... CTR 371 (Delhi), * ITO Vs Santosh Kumar Dalmia (1994) 208 ITR 337 (Cal), * Lovy Ranka Vs DCIT (ITA No.2107/Amd/2007), * Ravi Kant Vs ITO (ITA No. 3671 /Del/2006) (Delhi-Trib), * Vimla Devi Samariya vs ITO (ITA No. 348/ JP/2018) (Jaipur-Trib) 8. On the other hand, the ld Sr DR for the revenue supported the orders of the lower authorities. The ld Sr DR for the revenue submits that all the submissions of the assessee was considered by the ld CIT(A) in his order. The ld CIT(A) fairly and reasonably adopted the average value of the cost of construction suggested by DVO and the registered valuer. The ld AR for the assessee in her submissions has relied on hypothetical preposition which is not supported with any evidences available on re....
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.... the same is set aside/ quashed. The ld CIT(A) ought to have considered the basic details of comparable stances narrated by DVO in his report, whether such comparable are good comparable vis-a vis the location, size, quality of construction or not. Further if the value suggested by the DVO is more than the value adopted by the stamp valuation authority, whichever is less is to be considered. Hon'ble Delhi Court in CIT Vs Khoobsurat Resorts (P) Limited (supra) also held that without considering the real market price, additions cannot be made merely on the basis on higher consideration was declared for the purpose of stamp duty. 10. I have perused the report of the DVO. The ld DVO in his report has accepted that the assessee filed objection ....