TaxTMI 
TaxTMI 
2025 (11) TMI 468
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....ich is beyond the time limit prescribed under section 153 of the Act, is void and bad-in-law". 2. FOR that the Ld. CIT(Appeals) was wrong and unjustified in not discussing/considering the submission made before him in respect of violation of limitation by the Ld. A.O. in passing the assessment order on 06.04.2021 which was to be passed by 31.12.2019. 3. FOR that the Ld. CIT(Appeals) was wrong and unjustified in ignoring and/or not considering the provisions of sec. 155(15). 4. FOR that the Ld. CIT(Appeals) was wrong and unjustified in stating that Ld. A.O. get extension due to COVID pandemic for which Govt. of India declared lockdown from 24.03.2020 whereas appellant requested to the Ld. A.O. on 30.08.2019 to refer the matter to DVO and the Ld. A.O. referred to DVO vide his letter dtd.07.11.2019 and Ld. A.O. received the valuation report dtd. 19.12.2019 from Valuation Officer on 05.02.2020 much before the lockdown due to COVID Pandemic. 5. FOR that the Ld. CIT(Appeals) was wrong and unjustified in confirming the estimated deemed value of Rs. 70,19,310/- suggested by DVO by stating that the appellant got substantial relief from value of Stamp Duty....
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....500/-. The Ld. AO completed the assessment by computing capital gains at Rs.64,08,500/- and assessed the total income of the assessee at Rs.67,13,478/-. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A) who considered the written submission filed and dismissed the appeal of the assessee. 4. Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal. 5. Rival contentions were heard and the submissions made have been examined. It was argued by the Ld. AR in the course of appeal before us that the return was filed showing capital gains and the assessee had objected to the valuation adopted for the purpose of stamp duty. The Ld. AO referred the matter to the DVO under sub-section (2A) of section 142 of the Act while the matter should have been referred u/s 50C(2) of the Act. It was argued that sub-rule (2A) of section 142 relates to acquisition of property while sub-section (2) of section 50C of the Act refers to the sale consideration. The initial reference was wrong for AY 2016-17 and the Ld. AO had applied the wrong provision, it was argued by the Ld. AR. The assessee relied upon the order of the Hon&....
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....ably modified as per the CBDT's guidelines on valuation of immovable properties and the seven properties were valued for the following amount as per the details given below: Sl. No. Date of Valuation Property Declared by the Assessee (full value of property Excluding stamp duty) Estimated by this Office (full value of property Excluding stamp duty 1 30.05.2016 414A, Kasba-Mounath, Mouza-Munsinath, Tehsil-Sadar Janpad. Uttar Pradesh (Roof arca) Registry no- 3650 6,90,000/- 19,24,620/- 2 30.05.2016 414A. Kasba-Mounath, Mouza-Munsinath, Tehsil-Sadar Janpad, Uttar Pradesh, Registry no-3651 2,30,000/- 6,52,440/- 3 18.06.2016 414A, Kasba-Mounath, Mouza-Munsinath, Tehsil-Sadar Janpad, Uttar Pradesh, Registry no- 4114 2,00,000/- 552,600/- 4 18.06.2016 414A, Kasba-Mounath, Mouza-Munsinath. Tehsil-Sadar Janpad, Uttar Pradesh, Registry no-4113 1,60,000/- 4,91,040/- 5 09.09.2016 414A, Kasba-Mounath, Mouza-Munsinath, Tehsil-Sadar Janpad, Uttar Pradesh, Registry no-6129 11,22,000/- 22,10,610/- 6 06.09.2016 414A, Kasba-Mounath, Mouza-Munsinath, Tehsil-Sadar Janpad, Uttar Pradesh, Registry no 6126 ....
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.... by the decision of the Hon'ble ITAT, Ahmedabad Bench in the case of Smt. Rashidaben Taher Morawala-Vs- DCIT in ITA No.1353/Ahd/2019 vide order dtd.19.10.2022. Copy of said order is enclosed for your perusal. It is therefore humbly requested that since order is clearly barred by limitation, it should be quashed." 7. The Ld. DR relied upon the order of the Ld. CIT(A) and requested that the same may be confirmed. 8. We have considered the matter, gone through the details filed and heard the rival submissions. As regards Ground nos. 1, 2 and 4 of the appeal relating to the assessment order being barred by limitation prescribed u/s 155 of the Act it would be relevant to refer to the sequence of the events as under: 22.07.2017 Income Tax Return filed. 29.08.2018 Notice u/s. 143(2) issued. 15.05.2019 Notice u/s. 142(1) issued. 22.08.2019 Notice u/s. 142(1) issued. 28.08.2019 Reply letter by Assessee in response to notice dtd.22.08.2019 objected to Valuation of Stamp Duty Authority and requested A.O. to refer matter to Valuation Officer. 07.11.2019 A.O. refers matter to Valuation Officer 19.12.2019 Valuation report b....
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.... (5), as the case may be, to the Assessing Officer and the assessee, within a period of six months from the end of the month in which a reference is made under sub-section (1). (7) The Assessing Officer may, on receipt of the report from the Valuation Officer, and after giving the assessee an opportunity of being heard, take into account such report in making the assessment or reassessment. Explanation.-In this section, "Valuation Officer" has the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957)." 10. The Ld. AR contends that the reference was made under sub-section (2A) of section 142. However, the same refers to the valuation of inventory by the Cost Accountant determined by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner and there is no specific mention of the section under which the valuation was made by the Ld. AO in the assessment order so as to hold that the reference was made u/s 142(2A) and not under section 142A of the Act. The power to refer any property for the purpose of assessment or reassessment to the Valuation Officer who estimates the value including the fair m....
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....any time before the expiry of 8[twelve] months from the end of the financial year in which such return was furnished. 9[(1B) Notwithstanding anything in sub-section (1), where a return is furnished in consequence of an order under clause (b) of sub-section (2) of section 119, an order of assessment under section 143 or section 144 may be made at any time before the expiry of twelve months from the end of the financial year in which such return was furnished.] Explanation 1.-For the purposes of this section, in computing the period of limitation- . . (v) the period commencing from the date on which the Assessing Officer makes a reference to the Valuation Officer under sub-section (1) of section 142A and ending with the date on which the report of the Valuation Officer is received by the Assessing Officer . . . shall be excluded: . . Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub-sections (1), ^39[(1A),] (2), (3) and sub-section (8) available to the Assessing Officer for making an order of assessment, rea....
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....opriate. Hence, Ground No.1 is dismissed." 13. Considering the totality of facts as enumerated above and the facts of the case, there is no reason to interfere with the finding of the Ld. CIT(A) in this regard and hence, Ground nos. 1, 2 and 4 are dismissed. 14. As regards Ground no. 3 the provisions of sub-section (15) of section 155 of the Act are as under: "Other amendments. 155. (15) Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being land or building or both, is computed by taking the full value of the consideration received or accruing as a result of the transfer to be the value adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty in accordance with sub-section (1) of section 50C, and subsequently such value is revised in any appeal or revision or reference referred to in clause (b) of sub-section (2) of that section, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the full value of the consideration to be the value as so revised in such appeal or revision or reference; and the provisions of section 1....
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.... Valuation Officer on the request of the appellant, got substantial relief. 6.2.1 With regard to giving proper opportunity of hearing, it is seen from the assessment order that the AO issued notice u/s. 142(1) of the Act for appellant's comments/objections on the Valuation made by the AVO. However, there was no compliance by the appellant to the said notice u/s. 142(1) issued by the AO. 6.2.2 Considering the facts and circumstances of the case, the LTCG computed by the AO is upheld and ground Nos.2 and 3 are dismissed." 17. Further, the assessee has relied upon the decision of the Coordinate Bench of the Ahmedabad Tribunal in the case of Smt. Rashidaben Taher Morawala (supra). In this respect, it is relevant to refer to the order of the Coordinate Bench which is reproduced as under: "6. Heard rival parties and perused the materials available on record including the Paper Book and Case Laws cited by the assessee counsel. Section 142A of the I.T. Act titled as 'Estimate by Valuation Officer in certain cases'. This section prescribes that for the purpose for making an assessment, where an estimate of the value of any investment referred to in ....
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....e as barred by limitation u/s. 153(1) of the Act. The assessee's contention that the Assessing Officer ought to have passed the assessment order under 153(1) on or before 31.12.2017 and then invoking subsection (15) of Section 155 and amend the assessment order within four years thereafter, is found to be justifiable. 6.3. In this connection, sub-section (15) of Section 155 is reproduced as follows: (15)- where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being land or building or both, is computed by taking the full value of the consideration received or accruing as a result of the transfer to be the value adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty in accordance with sub-section (1) of section 50C, and subsequently such value is revised in any appeal or revision or reference referred to in clause (b) of subsection (2) of that section, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the full value of the consideration to be the value as so revised in such appeal or revision or reference; and the provisions o....
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....x Act, 1957 (27 of 1957). (3) On receipt of the report from the Valuation Officer, the Assessing Officer may, after giving the assessee an opportunity of being heard, take into account such report in making such assessment or reassessment:" 18.1 The provision after the amendment w.r.e.f. 15.11.1972 are as under: "142A. (1) The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him." 19. Thus, the limitation of the sections under which the reference to the DVO could be made earlier were done away with and were substituted by reference being made for the purposes of assessment or reassessment without any specific mention of any sections. The Coordinate Bench in the case of Smt. Rashidaben Taher Morawala (supra), with due respect, inadvertently omitted to consider the amended provisions which were relevant for AY 2017-18 and which include reference to the Valuation Officer to estimate the value including fair market value of any asset, property or investment and submit a copy of the r....