2009 (4) TMI 954 - AT - Income Tax

Summary

Issues Involved:
Cross appeals against CIT (Appeals) order for assessment year 2000-01.

Assessee's Share Valuation:
- Assessee purchased property at Roop Nagar, Delhi for &8377; 14 lacs.
- AO referred matter to Valuation Officer u/s 142A, who valued property at &8377; 2,00,12,792.
- Assessee's 1/8th share worked out at &8377; 25,01,600.
- Difference of &8377; 11,01,600 added to assessee's income.
- CIT (Appeals) reduced value to &8377; 15,37,500, confirmed addition of &8377; 1,37,500.

Legal Interpretation - Section 142A:
- Tribunal held that for invoking section 142A, there must be evidence of investment outside books or undisclosed investment.
- Burden to prove understated consideration lies on Revenue.
- Valuation Officer's method challenged, found suffering from defects.
- Addition of &8377; 17,37,000 not sustainable, upheld CIT (Appeals) decision.

Decision:
- DR failed to produce material requiring valuation under section 142A.
- Comparable case for valuation found not suitable, rough estimate basisless.
- Order set aside, assessee's appeal allowed, revenue's appeal dismissed.

Conclusion:
- Order pronounced on April 22, 2009 by R. P. Garg (Senior Vice President) of ITAT Delhi.