2025 (6) TMI 714

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....961 (hereinafter referred to as the "Act"), dated 11.12.2018 for AY 2016-17. 2. Grounds taken by the assessee are reproduced as under: "1. That the assessment order u/s 143(3) of the Income Tax Act, 1961 ("the Act") dated 11.02.2018 passed by the Assessing Officer ("AO") and the additions/disallowances made therein are illegal, bad in law and without jurisdiction. 2. That the AO and the Commissioner of Income Tax (Appeals) ("CIT(A)") have grossly erred on facts and in law in passing the orders without giving a sufficient and reasonable opportunity to the assessee to be heard. The orders have been passed in violation of principles of natural justice. 3. That, on the facts and circumstances of the case, the CIT(A....

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....l gain of Rs. 6,50,000/- in the return so filed, for which a credit was given and ultimately, the addition was made for Rs. 15,86,709/-. It is important to note that assessee had offered capital gain of Rs. 6,50,000/-, since the sale of the property was not out of stock in trade, but part of its fixed assets duly reported in its audited financial statements. Assessee had calculated the capital gain by taking the consideration of Rs. 60,50,000/- and cost of acquisition as Rs. 54,00,000/-. Contrary to this, ld. Assessing Officer treated it as sale out of stock in trade and applied provisions of section 43CA. He replaced the actual consideration with stamp duty value and computed profits/gains at Rs. 22,36,708/-. 3.1. In the course of asses....

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....ction 50C(2) for its applicability in relation to determination of value adopted or assessed or assessable. Thus, where an objection is raised by the assessee on the stamp duty value adopted, a reference is to be made to the valuation officer. In the present case, assessee has made a request for making a reference to the valuation officer, fact of which is noted in the impugned assessment order itself. Ld. CIT(A) has also taken note of such an observation. However, both the authorities below failed to obtain a valuation report from the valuation officer on the objection raised by the assessee but have adopted the stamp duty value for the purpose of making addition in the hands of the assessee. 4.1 Considering the facts on record and the ....