2024 (4) TMI 883

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.... 144C(5) of the Income Tax Act, 1961 [the Act] for the AY 2016-17. 2. Briefly stated the relevant facts of the case are that the assessee is an individual Non-Resident Indian [NRI]. During the AY 2016-17, the assessee purchased an immovable property vide Document No. 1399/2016 of SRO, Palakollu, dated 03/03/2016 for a consideration of Rs. 15,00,000/- whereas as per the Ld. AO the SRO value was Rs. 30,50,000/-. In this regard, the Ld. AO observed that as per the provisions of section 56(2)(vii)(b) of the Act, the assessee has purchased the property below the market value and hence the difference of Rs. 15,50,000/- (Rs. 30,50,000 - Rs. 15,00,000/-) was proposed to be treated as 'income from other sources'. The Ld. AO also observed that the....

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....ome U/s. 56(2)(vii)(b) Rs. 15,50,000/- + interest income Rs. 9,027/-]. Accordingly, the Ld. AO passed the draft assessment order U/s. 144C(1) of the Act. On being aggrieved, against the draft assessment order, the assessee filed objections U/s. 144C(3) of the Act before the Ld. Dispute Resolution Panel, Bengaluru. After considering the submissions of the assessee and the remand report obtained from the Ld. AO, the Ld. DRP passed order U/s. 144C(5) of the Act on 29/11/2023 wherein the assessee's objections were rejected by the Ld. DRP. Giving effect to the directions of the Ld. DRP, the Ld. AO passed the final assessment order U/s. 147 r.w.s 144 of the Act on 30/11/2023 and sustained the addition made in the draft assessment order as directe....

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....he submissions made by the assessee in proper manner. 7. For these and other reasons the appellant praise that the orders passed by the Lower Authorities ought to be set aside in the interest of justice and fair play." 3. At the outset, the Ld. AR submitted before me that the Ld. AO did not consider and appreciate the evidences submitted before him which goes to the root of the matter to substantiate the claim of the assessee that the actual consideration paid towards purchase of property is the market value of such property as on the date of transaction took place. Further, the Ld. AR also submitted that the Ld. AO ought to have referred the matter to the Valuation Officer instead of making the addition arbitrarily without cons....