2025 (2) TMI 1338

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....evenue has taken the following grounds of appeal: "1. The Ld. CIT(A) has erred in law and on facts by deleting the addition of Rs. 16,90,45,805/- on account of capital gain on sale of property. 2. That the Ld. CIT(A) has erred in law and on facts by rejecting the valuation report which was found and seized during the search and seizure operation without any basis. 3. That the Ld. CIT(A) has erred in law and on facts in simply accepting the assessee's version that the valuation report was prepared for getting limits enhanced by the hanks without confronting the valuer and ascertaining the basis of valuation done by him. 4. That the Ld. CIT(A) has erred in law and on facts in rejecting the valuation rep....

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....assessment order and prayed for reversing the impugned order. 6. On the other hand, Ld. AR submits that during the course of search two valuation reports were found, one related two present assessee and other pertained to its sister concern M/s S.S. Horticulture Pvt. Ltd. In the case of sister concern also, based on the valuation report proceedings u/s 153C were initiated and addition was made which finally deleted by the Co-ordinate Bench of ITAT. The Co-ordinate Bench vide its order dated 14/07/2022 in ITA No.7122/Del/2018 in the case of M/s S.S. Horticulture Pvt. Ltd. has dismissed the appeal of the Revenue on merits. The relevant observations of the Co-ordinate Bench in para-10 of the order is as under: "10. Ld. CIT(A) quash....

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.... So far the decision of Ld. CIT(A) for deleting the addition is justified as the AO has not brought any evidence supporting the valuation report. We do not see any reason to disturb the conclusion drawn by the Ld. CIT(A) regarding merit of the case. However, we are of the considered view that the AO was justified for initiation the proceedings u/s 153C of the Act when he was in possession of certain valuation report related to the property which was sold during the year under consideration. The appeal of the Revenue is partly allowed." 7. We have considered the submissions of both the parties and perused the material. In the case of assessee, the addition is based on valuation report found during the search. In the case of M/s S.S. Horti....