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TMI Blog2018 (7) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... es that if the AO not recorded a satisfaction for the issue of notice 153C of the Act, the proceeding deserves to be quashed rather than giving the AO another chance to record proper reasons, when the AO not followed the procedure in law, the addition made deserves to be deleted. The lower authorities passed the order in summary manner without going into the merits of the case and analyzing the legal issue involved, the applicability of Section 50C(2) (a) of the Act, in a particular. AO has not found any adverse material evidence to indicate that assessee has received any excess money over and above the sale consideration, in the return of income. In the light of the peculiar facts of this case and in the absence of the DVO report, we ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. That the Ld. CIT(A)-2, Agra has completely ignored that once the appellant had objected before AO that value adopted by valuation authority exceeds the fair market value of the property sole on the date of transfer, then the AO was duty bound to refer the valuation to the Valuation Officer and in case he failed to do so, he was legally bound to accept the actual sale consideration of ₹ 25,90,500 to represent the fair market value of the property sold. 6. That it is settled law that failure by AO to refer the Valuation Officer despite specific request by the appellant and adopting the value taken by the stamp duty authority is a fatal error and reassessment has to be annulled. The matter cannot be set aside to the AO for sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 25,90,500/- of his share of properties sold by the assessee as against the circle rates of State Government quoted during the year under consideration at ₹ 2,47,23,000/- of the properties as per the chart submitted along with the reply filed before the AO (APB-Pgs,3-4); that in pari materia facts, a valuation report sought from DVO by the ITO2(3)(4), Lalitpur in the case of Shri Chanchal Chobey for the A.Y. 2013-14 for the sale of property (plot of land) just adjacent to assessee property, the sale price consideration was accepted as FMV by the DVO stamp duty over the circle rates [copy of the said valuation report is enclosed (APB, Pgs, 6 7)]; that as per Section 50C(2) of the Act, the AO may refer the valuation of capital assets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Trib) v) DCIT vs. Rohtas Projects Ltd., (2006) 100 ITD 113 (Trib. Lkw) vi) ACIT vs. Anima Investment Ltd. 73 ITD 125 (Trib. Del) 9. The Ld. DR submitted that the CIT(A) could have remanded the issue to the AO with the direction to refer the issue of valuation of property to the departmental valuation officer and the then accordingly decided. He again submitted before us that the matter may be restored to the AO. 10. Heard. It is fact on record that the assessee has disputed the adoption of value of the property (plots) as per stamp duty and circle rates of State Government which was claimed to be much higher than the fair market value. The AO has adopted fair market value of the property at circle rate at ₹ 2,47,23,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be followed by the AO. However, the AO while adopting value as per circle rates of the State Government, brushed aside the submission of the assessee and the provisions of law. As such, the fair market value of the property was not at all taken into consideration. Though it was statutory duty laid down upon the AO to obtain the valuation report by referring the matter to the DVO which he did not abide. The crux of the issue is that whether AO can be given second opportunity to make good his deficiency at the cost of expenditure to be incurred by the assessee by continuing the litigation for a further period beyond prescribed period of time under the act, in view of the period of limitation u/s 153 of the Act. 12. The Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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