2013 (12) TMI 1685 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A) u/s 50C(2), jurisdiction in re-opening assessment u/s 147, valuation as per provisions of Sec 50(2.

Appeal against order of CIT(A) u/s 50C(2): The assessee objected to value adopted by stamp valuing authority, requested not to invoke provisions of section 50C. AO treated market value at higher amount, computed capital gains. CIT(A) dismissed appeal as assessee did not furnish comparable cases. Assessee argued AO should refer matter for valuation by DVO as "may" in section 50C(2) should be read as "shall." Coordinate benches held referring to DVO is mandatory when objection raised. Tribunal agreed, set aside AO and CIT(A) orders, directed valuation by DVO for fair market value.

Jurisdiction in re-opening assessment u/s 147: Assessee withdrew objection regarding jurisdiction in re-opening assessment u/s 147 during arguments, ground treated as withdrawn.

Valuation as per provisions of Sec 50(2): Assessee argued for valuation by DVO as "may" in section 50C(2) should be read as "shall." Tribunal agreed, directed AO to refer issue to DVO for fair market value consideration. Coordinate benches consistently held referring to DVO is mandatory when objection raised by assessee.

Conclusion: Tribunal allowed appeal for statistical purposes, directed valuation by DVO for fair market value consideration.