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TMI Blog2019 (11) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,550/-. The return was initially processed u/s 143(1) of the Act and subsequently it was selected for scrutiny under CASS. Accordingly, notices u/s 143(2) and 142(1) of the Act were issued to the assessee. During the assessment proceedings u/s 143(3) of the Act, the AO observed that the assessee has sold a property at Shangrila Apartments for Rs. 1,65,00,000/- as against the SRO value of Rs. 2,12,73,600/-. Therefore, vide notice u/s 142(1) of the Act, dated 6.1.2016, the assessee was required to explain as to why the provisions of section 50C should not applied. The assessee, vide letter dated 28.1.2016 explained that he had entered into an agreement of sale for a consideration of Rs. 1,65,00,000 on 8.2.2010 and also submitted the copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 1.4.2017, the SRO value as on the date of the agreement of sale should be considered. In support of this contention, he also placed reliance upon the decision of the ITAT, Vizag Bench in the case of Smt. Chalasani Naga Ratna Kumari vs. ITO. The AO however, did not accept the assessee's contention and adopted the SRO value of Rs. 2,12,73,600/- as the value of the sale consideration for the purpose of computation of capital gain and accordingly brought the difference to tax. 4. Aggrieved, the assessee preferred an appeal before the CIT (A), stating that as per section 142(1)(vi) of the Act, the DVO is required to submit the valuation report within six months from the date of the reference and further that the AO has to complete the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (4) or sub-section (5) within a period of 6 months, i.e., by end of August 2016. Whereas the report was submitted by him only in July 2017 and consequently the impugned assessment is barred by limitation. 3. Without prejudice to ground No.2: (a) The learned CIT(A) grossly erred in confirming the adoption of sale consideration as per Section SOC valuation as on the date of sale deed viz., 03.09.2012 ignoring the applicability of the first proviso and the second proviso to sub-section (1) of section 50C. (b) The appellant prays that the appeal be allowed in toto on the above grounds". 4. For the above grounds and such other grounds that may be urged at the time of hearing, the appellant prays that the appeal be allowed. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follow the timeline given in the Act. He also referred to the other subsections of section 142(A), where the words "may" or "shall" are used in different contexts. In support of his contention that, where in the same section both the words are used, word "shall" be considered mandatory, he relied on Central Board of Direct Taxes Circular reported in 371 ITR 22 and also the decision of the Hon'ble Delhi High Court in the case of B.K. Khanna & Co. vs Union Of India And Others on 14 September, 1984(156 ITR 796 (Del.). He submitted that as per section 153A of the Act, the assessment order has to be passed on or before 31.03.2016, whereas the assessment order is passed on 19.09.2017. Therefore, he sought the setting aside of the assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have to be excluded for determining the time limit. However, the question before us is the period allowed to the DVO to submit the report. U/s 142A of the Act, the valuation report has to be submitted within six months from the date of the receipt of the reference. Admittedly, in the case before us, the valuation officer has submitted the report beyond a period of 15 months. Whether this period can be enlarged or condoned is to be seen. As rightly pointed by the learned Counsel for the assessee, the word used in sub-section 6 of section 142A is "shall" and in other sub sections, the word used is "may". The Hon'ble Delhi High Court in the case of B.K. Khanna & Co. vs Union Of India And Others on 14 September, 1984 (Supra) has clearly h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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