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Pr. Commissioner Of Income Tax Surat 2 vs M/S. Shreeji Prints Pvt. Ltd. on 27 August, 2021

In the case of Pooja Prints (Supra), the assessee adopted the value of his property at Rs.35.99 lakhs as a fair market value as on 1-4-1981 on the basis of a valuation report. The Assessing Officer was of the view that the value of property at Rs.35.99 lakhs as adopted by the assessee was high considering the fact that it was purchased at a consideration of Rs.1.45 lakh only 15 months earlier. Therefore, the Assessing Officer referred the issue of valuation to the Departmental Valuation Officer who valued the property at Rs.6.68 lakhs as on 1-4-1981 and the indexed cost at Rs.33.20 lakhs. Consequently, the Assessing Officer by his Assessment Order enhanced the capital gain of the appellant from Rs.11.20 lakhs to Rs.1.61 Crores. On appeal the Commissioner (Appeals) dismissed the appeal of the assessee. On second appeal, the Tribunal held that in view of section 55A(a), it was not permissible for the Assessing Officer to make a reference to the Departmental Valuation Officer for the purpose of valuation, as the value of the property declared by the assessee was not less than its fair market value. On these facts, the Hon'ble Bombay High Court held as given below:
Supreme Court - Daily Orders Cites 0 - Cited by 11 - Full Document

Maruti G.Thopte,, Pune vs Income-Tax Officer,, Pune on 5 January, 2018

6.8. The appellant also relied upon the decision of the Hon'ble ITAT Pune in the case of Shri Maruti G Thopte Vs ITO in ITA No. 863/PUN/2017 dated 05-01-2018. In this case, the assessee filed his return of income for AY. 2010-11 on 30.03.2012 declaring total taxable income of Rs.59,019/-. Thereafter, notice u/s 148 of the Act was issued on 25.03.2013. In response to the notice, assessee filed revised return of income on 12.03.2014 declaring total income of Rs.1,87,987/-. Thereafter, the assessment was framed u/s 143(3) of the Act vide order dt.28.03.2014 and the total income was determined at Rs.71,93,380/-. During the course of assessment proceedings AO noticed that assessee had sold ancestral immovable properties along with his three brothers for a total consideration of Rs.12,56,00,000/- and assessee's share was 1/4th in the property. On the basis of Valuation Report dt. 29.03.2012 of Shri S.P. Tayawade Patil, the Government Approved Valuer, Sangli, the assessee while calculating the long term capital gain had adopted the cost of acquisition of the immovable property at Rs.1,15,99,280/- as on 01.04.1981. The AO was of the view that the cost of acquisition adopted by the assessee was excessive and hence not acceptable. He referred the matter to the District Valuation Officer (DVO) for the valuation of the property. The DVO vide order dt.07.02.2014 passed u/s 55A r.w.s. 16A(5) of the Wealth Tax Act, 1957 determined the fair market value of the property at Rs.51,000/- and accordingly, the assessee's share was worked out at Rs.12,750/- (1/4th of Rs.51,000/-). AO on the basis of report of DVO considered the cost of acquisition of the property at Rs.12,750/-. Thereafter, the assessment was framed u/s 143(3) of the Act vide order dt.28.03.2014 and the total income was determined at Rs.71,93,380/-. Thus, the amendment to the Sec 55A of the Act was made w.e.f. 01-07-2012 and the reference to DVO was made after this date (as the notice u/s 148 of the Act was issued on 25.03.2013). The CIT(A) confirmed the addition made by the AO saying that sec. 55A is a procedural section and any amendment to the procedural section is 16 ITA No.824/PUN/2019 ITA Nos.931 to 933/PUN/2019 applicable from the date of amendment. It has no relevance to the assessment year.
Income Tax Appellate Tribunal - Panji Cites 17 - Cited by 3 - Full Document
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