2026 (2) TMI 83

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.... passed by the Assistant Commissioner of Income-tax, Circle 4, Thane[hereinafter referred to as "Assessing Officer"], under section 143(3) read with section 142A of the Act, dated 21.08.2019. Facts of the Case 2. The assessee is an individual. The return of income for A.Y. 2016-17 was filed on 06.03.2017 declaring total income of Rs. 30,10,680/-. The case was selected for complete scrutiny under CASS and statutory notices under sections 143(2) and 142(1) of the Act were issued. 3. During the course of assessment proceedings, it was noticed by the Assessing Officer that the assessee had purchased an immovable property being a plot of land from M/s. Satyam Builders vide conveyance deed dated 20.10.2015 for a consideration of Rs. 5,00....

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....on 56(2)(vii)(b) of the Act. The total assessed income was determined at Rs. 1,11,16,680/-.Penalty proceedings under section 274 read with section 271(1)(c) of the Act were also initiated. 7. The assessee, preferred appeal before CIT(A), who reiterated the facts and noted that he assessee had purchased a plot of land for Rs. 5,00,000/- and the stamp duty value thereof was Rs. 86,06,000/-. It was further recorded by the learned CIT(A) that, on the request of the assessee, reference was made by the Assessing Officer to the District Valuation Officer under section 142A of the Act on 19.12.2018. However, no valuation report was received from the District Valuation Officer till the date of passing of the assessment order. 8. The assessee c....

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....entre] has erred in sustaining the action of the Ld. Assessing Officer without appreciating the deficiencies affecting the value of land purchased, as duly submitted during the course of assessment proceedings. 3. In the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) has failed to consider the fact that the reference made by Ld. AO to the Departmental Valuation Officer (DVO) is pending, thereby rendering the addition unjustified and premature. 4. In the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) has failed to consider the fact that the DVO is empowered to value the immovable property when an application is made under sec....

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....cord. It is an undisputed fact that the Assessing Officer made a reference to the District Valuation Officer under section 142A of the Act on 19.12.2018 for determining the fair market value of the property purchased by the assessee. It is also not in dispute that no valuation report was received from the District Valuation Officer till the date of passing of the assessment order on 21.08.2019. 14. The addition under section 56(2)(vii)(b) of the Act has been made solely on the basis of the stamp duty value without considering any valuation report from the District Valuation Officer. Even the learned CIT(A) has recorded that the valuation report from the District Valuation Officer was not available at the time of completion of the assessm....