TaxTMI 
TaxTMI 
2026 (8) TMI 189
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....u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 28.09.2021 by the Assessing Officer, NFAC, Delhi (hereinafter referred to as 'ld. AO'). 2. The Assessee has raised the following grounds of appeal:- 1) Ground1. That on the facts and circumstances of the case, the assessment order dated 28.09.2021 under section 143(3) read with section 144B of the Income-tax Act, 1961 is invalid and without jurisdiction. 2) Ground1.1 That on the facts and circumstances of the case, the impugned assessment order is beyond jurisdiction and barred by limitation, since the same was passed beyond the period of limitation prescribed under section 153 of the Act on the basis of an invalid reference to DVO under....
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.... in making the impugned addition to total income under the normal provision as opposed to Capital Gains under section 45 and correspondingly applying the rate of tax applicable to the income under the head of Capital Gains. 7) Ground4. The Appellant craves leave to add, alter, amend OR vary from the aforesaid grounds of appeal at OR before the time of hearing. 3. We have heard the rival submissions and perused the material available on record. The return of income for AY 2017-18 was filed by the assessee company on 12.10.2017 declaring total income of Rs. 9,24,88,430/-. The case of the assessee was selected for scrutiny. The assessee company is engaged in the business of providing loans and making investments as a non banking fi....
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....aded that the assessment completed u/s 28.09.2021 is barred by limitation in terms of provisions of Section 153(1) of the Act. The assessee submitted that the fact of ld AO making reference to ld DVO was made known to the assessee for the first time only through the assessment order wherein, it was mentioned that case was referred to Valuation Cell by the ld AO vide letter dated 11.11.2019. Further, it was pleaded before the ld CIT(A) that the ld AO should have referred the case to ld DVO as per provisions of Section 50C(2) of the Act, being a specific provision involved for adjudicating the disputed issue and should have passed the assessment order on or before 31.12.2019 as per the outer time limit prescribed in Section 153 of the Act. Th....
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....uation Officer, then the ld AO is duty bound to wait for the report from the Valuation Officer before finalizing the assessment. In the instant case, assessment has been framed on 28.09.2021 without waiting for the valuation report from the ld DVO which itself would make the order the ld AO as invalid. Reliance in this regard was placed on the decision of the Hon'ble Madras High Court in the case of N. Meenakshi Vs ACIT reported in 326 ITR 229. In the instant case, no such valuation report was either submitted to the ld AO or to the assessee. Under these circumstances, the ld AO should have relied on the independent valuation report submitted by the assessee which has been obtained from an approved Government valuer who had valued the prope....
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....eference in the instant case was made u/s 142A of the Act by the ld AO to the ld DVO. The ld CIT(A) held that assessment framed on 28.09.2021 was well within the time in view of the extended provision of 203 days as per Explanation 1(b) to Section 153 of the Act and thereafter followed by relaxation given due to COVID. The ld CIT(A) held that accordingly, the last date for completion of the assessment would be 30.09.2021 and hence the assessment framed on 28.09.2021 was within time. On merits, the ld CIT(A) upheld the addition made u/s 50C of the Act. The ld CIT(A) also held that Section 50C(2) of the Act specify reference to Valuation Officer by stating that AO may refer the valuation of capital asset to the Valuation Officer. The ld CIT(A....
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....reference is made to ld DVO in terms of Section 50C(2) of the Act, being is a special provision. Hence, the ld AO ought to have completed the assessment within the time limit prescribed u/s 153(1) of the Act i.e. on or before 31.12.2019 and make suitable amendment to the assessment order after the receipt of ld DVO's report as provided in Section 155(15) of the Act. This was not done by the ld AO in the instant case. Hence, the assessment framed on 28.09.2021 would be barred by limitation as resort to extended time limit cannot be used by the revenue in the instant case, as the reference could not have been made u/s 142A of the Act itself in the instant case, rather the reference to be construed to have made only in terms of Section 50C(2) ....