TaxTMI 
TaxTMI 
2024 (10) TMI 478
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.... and circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 18,86,850/- on account of excess fair market value as given in the Valuation Report over the purchase consideration treated as alleged income from other sources u/s 56(2)(x) of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has not offered adequate opportunities to hear the case and passed ex-parte order and hence the case may please be set aside and restore back to the CIT(A) or AO. 3. On the facts and in the circums....
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.... of assessment order. The Assessing Officer recorded that assessee is in reply show cause notice stated that fair market value of said land may be considered at Rs. 43,86,850/- as per valuation report of District Valuation Officer (DVO). The Assessing Officer accordingly brought the difference of Rs. 18,86,850/- (43,86,850 - 25,00,000) to taxation and added under section 56(2)(x) of the Act. 3. Aggrieved by the addition in the assessment order, the assessee filed appeal before Ld. CIT(A). The Ld. CIT(A) confirmed the action of Assessing Officer by holding that Assessing Officer adopted the value of asset as per report of DVO. The Assessing Officer is right in invoking the section 56(2)(x) of the Act. Thus, there is no infirmity in the orde....
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.... meter. However, the DVO has adopted / suggested rate at Rs. 155/- per square meter. The Ld. AR submits that value estimated by DVO is on higher side and keeping in view the location and size of the land. The assessee purchased the land as per market rate. Though, the report of DVO is binding on the Assessing Officer, however, the appellate authority may differ with his report. The value of impugned land may be considered at the rate of sale consideration recorded in the sale deed. To support of his contention, the Ld. AR relied upon the following decisions: * Nitinkumar Manubhai Patel vs. ITO, ITA No.354/SRT/2024 (ITAT - Surat) * Sanjay Jayantilal Shah vs. ACIT, ITA No.212/SRT/2022 (ITAT - Surat) * Hasmukhbhai Gopalbhai Patel vs. ACI....
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....square meter on purchase of piece of land admeasuring 28,302. Since the DVO / Sub-Register Office valued the land at Rs. 62,26,000/-, thus, there was a difference vis-à-vis the sale consideration shown by assessee and the value asset determined by Stamp Registration Authority for the purpose of registration of land. I find that during the assessment, a reference was made by Assessing Officer was estimation of fair market value of land. Though, the Assessing Officer has not expressly mentioned about such reference in assessment order. The DVO furnished his report dated 24.03.2021. The DVO estimated the value of land @ Rs. 155/- per square meter. The report of DVO is binding on the Assessing Officer. The Assessing Officer on the basis ....