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TMI Blog2012 (10) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... a - Kurla, Mumbai Suburban District at Vidyavihar Road Andheri. Each of these assessees are having 17% share in the said property. The property was a very old property constructed in the year 1966-67 having number of galas, joining each other, mainly of ground floor with mezzanine floor. At the time of sale, many of the galas were in a dilapidated state and were occupied by tenants since 1969. However, the assessees herein alongwith other co-owners, sold the property to M/s. River Rose Developers Pvt. Ltd. on as is where is condition . In other words, the sale was subject to occupancy/tenancy right and for a lump sum consideration of Rs.15,13,50,000/-. However, as the Stamp Duty Authority valued the said property at ₹ 22,26,92,200/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated condition; (b) it was incapable to being used independently due to encumbrances of the existing industrial structure in haphazard manner; and (c) due to occupancy of existing tenants it is not easy to develop the property. These vital factors were ignored by the Stamp Duty Authority. 4. The AO, however, proceeded on the footing that as per provisions of section 50C of the Act the value adopted by the Stamp Duty Authority has to be taken as the fair market value and proceeded to recompute the consideration in the case of both the assessees. 5. Aggrieved, it was contended before the CIT(A) that the AO is duty bound to refer the matter to the Departmental Valuation Authority if an objection is raised by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence the fair market value declared by the assessee ought to have been accepted, was not accepted by the learned CIT(A). In this regard he observed that, no doubt, power to make reference to the Valuation Officer is vested in the AO and not with the first appellate authority but the fact remains that the powers of the CIT(A) are co-terminus with the AO and in such capacity he is empowered to give any direction which is necessary for disposing of the appeal before him. Having regard to the circumstances of the case he directed the AO to refer the matter to the Valuation Officer and reconsider the matter in accordance with law. 7. Aggrieved by the direction given by the learned CIT(A) the Revenue is in appeal before us contending inter a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the DVO. 11. Having regard to the circumstances of the case and in the light of the following decisions we are of the view that the first appellate authority was justified in remitting the matter to the file of the AO with the direction to make a reference to the Departmental Valuation Officer for ascertaining the market value: - 1. B.N. Properties Holdings (P.) Ltd. vs. ACIT [2010] 6 ITR (Trib) 1(Chennai) 2. Manjula Singhal vs. Income Tax Officer [2011] 46 SOT 149 (Jodh) 3. K.K. Nag Ltd. vs. ACIT [2012] 52 SOT 381 (Pune) 12. Now doubt, the learned counsel for the assessee placed reliance upon the following decisions in support of his contention that under section 16A of Wealth Tax Act if a reference is not made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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