2024 (8) TMI 528

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....tain the same. 2. (a) For that, on the facts and in the circumstances of the case and in law, the impugned addition amounting to Rs. 5,44,730/- on account of the difference between the Registered Value as per Departmental Valuation Officer and set fourth value sustained by the Commissioner of Income-tax (Appeal) - NFAC u/s 56(2)(viib) is purely on the basis of suspicion, surmises and conjectures as Independent Valuation Report valuing the property at Rs. 7,75,000/- has not been considered and the impugned addition is without any logical basis and ought to be deleted in entirety; (b) For that, on the facts and in the circumstances of the case and in law, the impugned addition amounting to Rs. 5,44,730/- on account of the difference between the Registered Value as per Departmental Valuation Officer and set fourth value sustained by the Commissioner of Income-tax (Appeal) - NFAC u/s 56(2)(viib) is purely on the basis of suspicion, surmises and conjectures as Independent Valuation Report has not been considered as the "plot is land locked plot with no direct road to plot from outside. It is difficult to sell this property as entrance is through some else's plot in....

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....ed valuer (DVO) amounted to Rs. 17,16,896/- are upheld by the ld. CIT(A). The order of the assessment was partly allowed. 5. Aggrieved, the assessee filed an appeal before this Tribunal against the appeal order. 6. Ld. A/R filed written submissions which are kept in the record. Ld. A/R further, argued and invited our attention to page no. 5 of the appeal order. The relevant paragraphs are reproduced as below: "5.1 During the period under consideration, the appellant had purchased two immovable properties for a total consideration of Rs. 11,72,160/-, the market value of which was assessed by registration authority for stamp duty purpose was Rs. 35,86,929/-. The AO had added the difference between market value and purchase value of Rs. 24,14,769/- as income from other source u/s 56(2)(vii)(b) of IT Act 1961 to the returned income. The AO had also referred the case to DVO for getting the valuation report considering the facts of the case. The report from DVO was not received till finalisation of case. Finally the AO had added the said difference amount. 5.2 During the course of appellate proceedings, the appellant has stated that he is having four different val....

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....only when such burden has been discharged, would it be permissible to rely upon the valuation given by the DVO. Further, the opinion of the DVO, perse, is not an information and cannot be relied upon in the absence of other corroborative evidence (See K. P. Varghese v. ITO [1981] 131 ITR 597 (SC), Civil Appeal No. 9468 of 2003 (Asst. CIT v. Dhariya Construction Co. [2010] 328 ITR 515 (SC)) decided by the apex court on February 16, 2010, CIT v. Shakuntala Devi [2009] 316 ITR 46 (Delhi), CIT v. Ashok Khetrapal [2007] 294 ITR 143 (Delhi) and CIT v. Manoj Jain [2006] 287 ITR 285 (Delhi)." In the case of Asst. CIT vs. Dhariya Construction Co. [2010] 328 ITR 515, (SC) held as under: "Having examined the record, we find that in this case, the Department sought reopening of the assessment based on the opinion given by the District Valuation Officer (DVO). The opinion of the DVO perse is not an information for the purposes of reopening assessment under section 147 of the Income-tax Act, 1961. The Assessing Officer has to apply his mind to the information, if any, collected and must form a belief thereon. In the circumstances, there is no merit in the civil appeal. The Depa....

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....d to Rs. 5,44,730/- was upheld for addition. The entire amount of Rs. 5,44,730/- was deemed to be the income as per Section 56(2)(vii)(b) of the Act. In valuation report of DVO the nature of land locked is mentioned in report dated 08-04-2021, the report of DVO APB page 12. The relevant paragraph is culled as below: - "The property containing one No. land plot vide p R.S. & L.R. plot No. 22 is situated within Bagan area within Mouza-Pratap PUR J.L. 48 P.S. Faridpur Dist. Burdwan. There is no direct connecting road except a kancha village road nearby next plot. The property is situated at very distant place from Durgapur city. The amenities search s market, hospital, school, college etc. are available within 10-15 Km distance" 11. The ld. A/R respectfully relied on the order of Hon'ble Apex Court in the case of Dhariya Construction Co. (supra) and the order of Hon'ble Delhi High Court in the case of Naveen Gera (supra) and Shakuntala Devi (supra). We also respectfully relied on the following orders of the Hon'ble Apex Court and the Hon'ble Delhi High Court. Whether an addition can be made solely and simply on the basis of valuation report submitted by the....