Phool Chand Gupta(Huf), 1/90 ... vs Ito, Wd-4(2), Jaipur on 16 January, 2024
The valuation by
8 ITA No. 393/JPR/2023
Phool Chand Gupta (HUF) vs. ITO
registrar was mechanically as per their norms without considering deficiency
of land whether it was suffering from Ganda nallas, rocks, some part of land
was 30-40 feet below the land level and it was unlevelled therefore it does not
show correct market value of property. The registrar valuation does not show
correct market value of property because they value the property as per rate of
location of property but they do not take into account deficiencies of properties
that i.e., nala, rocks, acquisition of land by JDA, levelling of land. Our land
was suffering from drawback of acquisition by JDA, 2-3 Ganda nalas, rocks,
non levelling of land. The all deficiencies reduce market value of property. The
registrar has not considered these drawbacks in their valuation therefore there
valuation is not correct and does not show correct market value. These
difference does not show any escapement of income because all these shows
deemed difference for which provisions of section 147 is not applicable. We
have not paid any amount over and above the purchase price therefore no
question of any income has escaped assessment. Merely because of stamp
valuation authority has adopted a certain valuation for payment stamp duty on
the property on the property purchased by the assessee the same cannot be a
basis to conclude that assessee's income has escaped assessment, particularly
when no tangible material has been brought on record to suggest escapement of
income. learned AO is wrong and illegal in reopening of assessment u/s 147 on
the basis of provisions of section 56(2)(vii)(b) because these provisions are
deeming provisions and, on the basis, of DLC rate it could not be presumed
that tax has evaded on any income because there is no actual income.
Provisions of section 56(2) (vii)(b) are similar section 50C because both are
applicable on difference in valuation of property by registrar therefore not
applicale in case of reopening of assessment. Kindly therefore cancel the
reopening proceedings and assessment order passed by AO on this basis.