2018 (9) TMI 1457

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..... ceeds declared by the assessee and the sale proceeds taken by the Ld. AO on the basis of valuation report of DVO. 2. Brief facts of the case are that the assessee is a public Ltd company engaged in the manufacture of ERW pipes. They have filed their return of income for the Assessment Year 2005-06 on 29/10/2005 showing an income of Rs. 16,39,15,323/- from business and profession, house property, capital gain and other sources. Ld. AO concluded reassessment at the total income of Rs. 16,39,15,320/- on 31/12/2007. Subsequently, assessment was reopened on the ground that there was understatement of the purchase consideration in respect of property. Ld. AO furnished the copy of the valuation report to the assessee. Assessee submitted before th .....

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..... n holding that the report of the DVO was on assumption despite the fact that the DVO had scientifically determined the fair market value of property considering all the factors by which the value of property is affected. Ld. DR heavily relied upon the orders of the Ld. AO. 5. Per contra, it is the argument of the Ld. AR that inasmuch as the Ld. CIT(A) deleted the addition by following the decision of the Hon'ble Apex Court, it is not open for the revenue to challenge the same unless and until the decision of the Hon'ble Apex Court in the case of KP Verghese (supra) is no longer a good law. He further submitted that recently in Arjun Malhotra vs. CIT (2018) 403 ITR 354 (Delhi) the Hon'ble jurisdictional High Court while referring to the dec .....

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..... n Malhotra (supra) the Hon'ble judicial High Court very recently in (2018) 403 ITR 354 (Delhi) making reference to the decision of the Hon'ble Apex Court in KP Verghese's case (supra) observed that the Assessing Officer could not have substituted the actual sale consideration received by the assessee with another figure stating that this was the fair market value. In the case of Smt. Nilofer (supra), the Hon'ble jurisdictional High Court after referring to the case law on this aspect stated that in a case involving the sales simplicitor, when the full value of the considerations are the sale prices, for the purpose of computing capital gains, there is no necessity for computing the fair market value and, therefore, the Assessing Officer cou .....

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