2023 (10) TMI 1601

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....eferred to as "the Act") relevant to the Assessment Year 2015-2016. 2. The only issue raised by the assessee is that the learned PCIT undersection 263 of the Act erred in holding the assessment framed under section 143(3) of the Act as erroneous insofar prejudicial to the interest of revenue. 3. The necessary facts of the case are that the assessee in the present case is a private limited company and engaged in the business of real estate. The assessee in the year under consideration has sold part of the land admeasuring 12181 square metres amounting to Rs. 5,90,16,060.00 only. The corresponding cost of the part of the land sold by the assessee was Rs. 23,83,588.00 which was valued by the registered valuer as on 1 April 1981 at Rs. 71....

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....fter due verification and application of mind. Therefore, the order of the AO cannot be said erroneous insofar prejudicial to the interest of revenue on account of non-verification. As per the learned AR the learned AO has taken one of the possible views by adopting the cost of acquisition as on 1 April 1981 shown by the assessee based on the registered valuation report. Thus, there is no infirmity in the order of the AO in case the AO does not adopt the value of the property as on 1.4.1981 determined by the DVO under section 55A of the Act. 6.1 The learned AR further contended that the valuation report of the DVO was received by the AO dated 3 January 2018 whereas the assessment was framed on 29 December 2017. Thus, there is no ambiguit....

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....eceived by the AO dated 3 January 2018 after the assessment order passed which evidence that such report was not available or part of the assessment records. Accordingly, based on the documents which was not part of the assessment records, the learned PCIT is precluded to initiate the proceedings under section 263 of the Act. In holding so, we draw support and guidance from the judgement of Hon'ble Calcutta High Court in the case of Reliance Jute and Industries Ltd. Vs. ITO reported in 150 ITR 643 wherein it was held as under: The valuation proceeding was liable to be quashed on the grounds that: (a) the opinion of the ITO which was an essential prerequisite for making a reference for valuation under section 55A was absent in the p....