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TMI Blog2016 (6) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... offered more than the market value, it is not the policy of law to recover more than what is actually due from the assessee. In either case, the contention of the assessee is wrong and not acceptable. In the case before us, the assessee, however, was inspired by sinister motive of avoiding to pay capital gain and that was the reason why he inflated the fair market value on 1st April, 1981. The reference made by the Assessing Officer was competent. The learned Tribunal was correct in holding that the clause (b)(ii) to section 55A carries a broader spectrum which certainly empowers the Assessing Officer to make reference to the DVO wherein in his opinion the fair market value estimated by the assessee is not proper and since in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent scheme in valuation certain assets (as was in the present case) as per Section 55A (2)(b) of the Income Tax Act, 1961 and directing the matter to be redone in the light of a special Bench of the Tribunal. II. Whether on the facts and in the circumstances of the case the order of the Tribunal was perverse on the question of legality of reference under Section 55A of the Income Tax Act, 1961 having been passed in total disregard of principles of legal precedents ? The factual background behind the controversy is to be found in paragraph-4 of the impugned judgement which reads as follows : Brief facts are that the assessee did not file its return of income for assessment year 1996-97. The Assessing Officer while perusing B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e power of Assessing Officer to make a reference having regard to the nature of the assets and other relevant circumstances. In our considered opinion, such clause carries a broader spectrum which certainly empowers the Assessing Officer to make reference to the DVO wherein in his opinion the fair market value estimated by the assessee is not proper and since in the present case the reference has been made by the Assessing Officer u/s.55A(b)(ii) of the Act, in our considered opinion such action of Assessing Officer was well within the parameters of the spirit of the section which empowers the Assessing Officer to make a reference to DVO i.e. in any other circumstances which he thinks that it is necessary to refer the matter to the DVO and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n more than the fair market value he obviously, is interested in increasing the index cost for the purpose of avoiding to pay capital gains. Therefore, the practice adopted by him cannot be permitted. Even assuming that there is a case in which the assessee has offered more than the market value, it is not the policy of law to recover more than what is actually due from the assessee. In either case, the contention of the assessee is wrong and not acceptable. In the case before us, the assessee, however, was inspired by sinister motive of avoiding to pay capital gain and that was the reason why he inflated the fair market value on 1st April, 1981. The reference made by the Assessing Officer was competent. The learned Tribunal was correct in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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