2009 (7) TMI 828 - AT - Income Tax

Capital gains - value adopted by the stamp valuation authority exceeded the market value of the property as on the date of transfer - long-term capital gains to the appellant s returned income, the AO ignored the facts of the case - sale deed evidencing the value adopted by the stamp valuation authority at higher figure than the actual sale consideration received - AO initiated proceedings under s. 148 of IT Act by change of opinion already entertained in regular assessment framed under s. 143(3) of IT Act in this case and as such the action cannot be held to be valid - appeal by the assessee allowed

Summary

The Appellate Tribunal ITAT JODHPUR issued an order in 2009 regarding an appeal by the assessee against an order from the CIT(A), Jodhpur. The grounds raised in the appeal included challenging the assessment order under s. 147 of the IT Act, the valuation of property, the addition of long-term capital gains, and the charging of interest under ss. 234A and 234B. The original assessment was made under s. 143(3) of the IT Act, with the AO subsequently issuing a notice under s. 148 based on the value of the property exceeding the declared value. The assessment was completed with an income of Rs. 8,76,410, including an addition of Rs. 5,30,895 as long-term capital gains. The CIT(A) upheld the action and addition. The assessee contended that the notice under s. 148 was based on a change of opinion and should be quashed, citing a judgment from the Delhi High Court. The Departmental Representative argued that the notice was valid. The Tribunal found in favor of the assessee, quashing the notice under s. and annulling the assessment. The appeal was allowed.