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TMI Blog2021 (10) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Commissioner of Income Tax (Appeals) -12, Chennai dated 30.09.2019 in I.T.A.No.22/CIT(A)-12/14-15 for the above mentioned Assessment Year is contrary to law, facts, and in the circumstances of the case. 2. The CIT (Appeals) erred in sustaining the assumption of jurisdiction u/s 147 of the Act by the Assessing Officer and consequently erred in sustaining the re-assessment completed u/s 143(3) read with section 147 of the Act J without assigning proper reasons and justification. 3. The CIT (Appeals) failed to appreciate that the order of reassessment passed was passed out of time, invalid, passed without jurisdiction and not sustainable both on facts and in law. 4. The CIT (Appeals) erred in partly sustaining the re-comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity given before passing of the impugned order and any order passed in violation of the principles natural justice would be nullity in law. 10. The Appellant craves leave to file additional grounds/arguments at the time of hearing." 3. Grounds of appeal No.1 to 3 are relating to reopening of assessment. Grounds of appeal No.4 to 9 are relating to addition in respect of Rs. 45,20,000/-. Grounds of appeal No.10 is general in nature, no adjudication is required hence, dismissed. 4. In so far as grounds of appeal No.1 to 3 relating to reopening is concerned, the ld. Counsel for the assessee has relied on the grounds and the Ld. D.R has strongly supported the order of the Ld. CIT(A) and submitted that the reopening may be upheld. 5. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Doraisamy continued to stay on the land and his son Shri D. Gopal took the control of the land and submitted that he sold the property for a lesser price. The A.O has asked the assessee to submit Encumbrance Certificate (EC) and as per E.C, the purchaser had subsequently partitioned the land and sold it to various individuals during 2008 to 2012 and earned substantial income. The A.O has asked the assessee to explain the same, the assessee has further submitted that the Assistant Commissioner, Urban Land Tax Department in response to a query made by Shri D. Gopal on 25.10.2013 that the land to an extent of 4600 Sq. meters (around 1 acre and 14 cents) has already being appropriated by the Govt. of Tamil Nadu under the Urban Land Ceiling A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty under the Urban Ceiling Act therefore, the entire sale transaction is not valid. He further submitted that the Ld. CIT(A) has upheld the order of the A.O based on the DVO report which is not correct. 11. On the other hand, the ld. DR has submitted that once the issue of valuation of property has been referred to DVO as per the request of the assessee, the A.O has to follow the same and therefore, he strongly supported the LTCG calculated by the A.O as per the DVO report, confirmed by the Ld. CIT(A) and submitted that the same be upheld. 12. We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below. The assessee has sold the property for Rs. 7,00,000/-, whereas the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forcibly taken away by the Doraisamy son D. Gopal. These are the only explanations given by the assessee without any basis. Therefore, these baseless reasons given by the assessee cannot be considered. Apart from the above, as per the assessee request, the issue was referred to the District Valuation Officer, the DVO vide order dated 15.10.2018 valued the property for Rs. 45,20,000/-. The A.O by considering the same, recomputed the capital gains and the same was confirmed by the Ld. CIT(A). For the sake of convenience, the relevant portion of the order is extracted as under: "10. I have perused the above decision. It is mentioned in the decision that "it would be' an insult to the honest taxpayer to adopt an assumed higher market valu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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