2010 (1) TMI 863 - AT - Income Tax

Confirming u/s 50C towards flat and towards garage in place - provisions of sec. 50 are applicable which has not been considered either by the AO or by the CIT(A) - it was submitted that the matter should be sent back to the file of the AO to examine the applicability of section 50 Held that - Matter remanded to AO.

Summary

Issues:
1. Appeal against order of CIT(A) for assessment year 2004-05.
2. Dispute over valuation under section 50C for flat and garage.
3. Addition of estimated sale consideration for furniture.
4. Disallowance of bad debts.

Analysis:
1. The appeal pertains to the assessment year 2004-05 against the order of the CIT(A). The primary issue raised in the appeal is regarding the valuation under section 50C for a flat and garage. The assessee declared a lower value than what was confirmed by the authorities, leading to a dispute. The contention was that the provisions of section 50 were applicable, which had not been considered by the AO or the CIT(A). The assessee cited precedents where similar provisions were applied. The Tribunal, considering the arguments, set aside the previous orders and directed the AO to re-examine the applicability of section 50. If section 50C is found applicable, the matter should be referred to the DVO due to the assessee's objection to the valuation.

2. Another issue raised was the addition of estimated sale consideration for furniture. The Tribunal decided to restore this matter to the AO for fresh consideration. The Tribunal noted that a similar matter was pending before the Hon'ble Bombay High Court for consideration. Therefore, the Tribunal directed the AO to decide the issue afresh, considering the decision of the High Court if available at that time. The Tribunal ordered accordingly, allowing the appeal for statistical purposes.

3. The final issue pertained to the disallowance of bad debts amounting to Rs. 6,84,656. The Tribunal did not provide detailed analysis or instructions regarding this issue in the judgment. However, it was mentioned that this matter could also be sent back to the AO for reconsideration, similar to the other issues discussed above. The Tribunal's order was pronounced on 14th Jan., 2010, concluding the decision on the various issues raised in the appeal.