2026 (3) TMI 814

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.... paid by the Assessee. 2. The Income Tax returns filed by the Assessee for the financial year 2012-13 (assessment year 2013-14) was taken up for assessment under Section 143 of the Income Tax Act, 1961 (for short, 'the Act') by the revenue. The issue pertains to the cost of construction of a building on a land belonging to the Assessee. An order under Section 143(3) of the Act was passed by the jurisdictional Income Tax Officer (for short, 'the ITO') on 30.03.2015. Against the said order, an order under Section 263 of the Act was passed on 22.03.2017, suggesting that the jurisdictional ITO is required to have the building valued from the Departmental Valuation Officer and thereafter, pass necessary orders under Section 143 read with Sect....

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....ime limit. He further contended that irrespective of the number of days of delay in receiving the valuation report, the Assessing Officer gets 60 days time to pass an order under Section 153 of the Act. He contended that if after the delayed submission of the valuation report, it is found that the assessment order passed by the ITO is prejudicial to the interest of the revenue, the Principal Commissioner of Income Tax is empowered to pass appropriate orders to the contrary under Section 263 of the Act, which has been done in the instant case. Hence, he prays that the appeal be allowed by framing substantial questions of law as mentioned in the appeal memorandum. 5. Per contra, the counsel for the Respondent/Assessee justifies the impugne....

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....e Act empowers the Assessing Officer to refer the valuation of a property to a Valuation Officer. Sub-section (6) of the Section 142A of the Act mandates that the valuation report shall be submitted within six months from the end of the month in which the reference is made. 8. Thus, Section 142A of the Act empowers the Assessing Officer, for the purposes of assessment under the IT Act, to refer the matter to a Valuation Officer to assess the market value or fair value of the property involved, and the Valuation Officer is required to do the same within a period of six months thereafter. 9. Section 142A(6) of the Act reads as under: "142A(6). The Valuation Officer shall send a copy of the report of the estimate made under sub-....