2024 (6) TMI 923

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....Income Tax Department, Delhi, has grossly erred in retaining the addition of Rs. 10,00,000/- made by the AO, CPC vide his intimation under section 143(1) by way of adjustments, by adopting the Stamp Value as the sale proceeds of the residential flat located at a very old building, ignoring the market value being the contract value at which the assessee has sold his property. The order passed by Ld. CIT (Appeals) is liable to be quashed. 2. The Ld. Commissioner of Income Tax (Appeals), NFAC has erred in not appointing a Departmental valuation Officer to ascertain the market Value of the residential flat sold by the assessee. Thereby thwarting the principles of natural justice. To the extent CIT (appeals) Order under section 250 is liable ....

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..... 10,00,000/- by invoking the deeming provisions of section 50C of the Act. We notice that the assessee is an individual and filed ITR Form No. 3 on 27.08.2019. In the column of computation of capital gain appearing in the ITR Form No. 3, the assessee has disclosed the transaction of long term capital gain. In the said detail which is appearing in page no. 31 of the paper book long term capital gain has been computed at Rs. 8,40,000/. For computing the said capital gain sale consideration is said to have been received at Rs. 35 lakh. Index cost of acquisition and index cost of improvement is at Rs. 26,60,000/-. The index cost of acquisition is not in dispute before us. The assessee in column no. 'B' of Schedule 'CG' has stated the full valu....

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....e (a) of sub- Section (2) of Section 50C was met by the assessee. 7. We have already set out hereinabove the recital appearing in the Deeds of Conveyance upon which the assessee was relying. Presumably, the case of the assessee was that price offered by the buyer was the highest prevailing price in the market. If this is his case then it is difficult to accept the proposition that the assessee had accepted that the price fixed by the District Sub Registrar was the fair market value of the property. No such inference can be made as against the assessee because he had nothing to do in the matter. Stamp duty was payable by the purchaser. It was for the purchaser to either accept it or dispute it. The assessee could not, on the basis of the ....

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....ging a quasi judicial function, has the bounden duty to act fairly and to give a fair treatment by giving him an option to follow the course provided by law. 9. For the aforesaid reasons, the order under challenge is set aside. 10. The impugned order including orders passed by the CIT(A) and the assessing officer are all set aside. The matter is remanded to the assessing officer. He shall refer the matter to the departmental valuation officer in accordance with law. After such valuation is made, the assessment shall be made de novo in accordance with law." 6. We find that the above judgement of the Hon'ble Jurisdictional High Court is squarely applicable in the case of assessee and facts are similar to the issue raised before us. Th....