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TMI Blog2022 (7) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... deem it fit and appropriate to remand this issue to the file of the ld. AO, with a direction to refer the valuation of subject mentioned property to the ld. DVO for determination of fair market value and also to consider the value fixed by the stamp duty authority in terms of Section 50C of the Act as on the date of sale and determine the sale consideration as per law. Accordingly, the ground No.1 raised by the assessee is allowed for statistical purposes. Disallowance of brought forward depreciation - Action of the lower authorities ignoring the revised return along with revised computation of income filed by the assessee wherein the assessee seem to rectify the error in the claim of unabsorbed depreciation of earlier year - HELD THAT:- We find that the ld. CIT(A) had accepted to the fact that there was an error in the original return filed by the assessee with regard to set off of unabsorbed depreciation and the same was duly rectified by way of a revised return and revised computation of income. From the perusal of the manner in which total income has been determined by the ld. AO in the assessment order, we find that the ld. AO had completely ignored the revised return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the property. The ld. AO also observed that provisions of Section 50C of the Act would come into operation in the hands of the assessee herein. The assessee vide letter dated 20/12/2017 filed its reply and explained the transactions in detail with supporting evidences and also requested the ld. AO to refer the matter to the Valuation Officer in accordance with provisions of Section 50C(2) of the Act to determine the fair market value of the property. The assessee categorically objected to the adoption of market value at Rs.56,07,907/- as it did not represent the true value of the property. The ld. AO however, without considering the submission of the assessee made addition u/s.50C of the Act on the basis of value adopted by the builder M/s. Sudarshan Housing and Finance Ltd., for transferring the said property to buyer i.e. M/s. Janus Consultants Pvt. Ltd., and made an addition of Rs 25,07,907/- (56,07,907-31,00,000) in the hands of the assessee. Infact the assessee during the course of hearing also submitted the subsequent sale agreement of the property sold by it to M/s. Janus Consultants Pvt. Ltd., on 29/05/2017 falling in A.Y.2018-19 for Rs.25,00,000/- which was much low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and when the said property is converted into freehold land and the transfer which has already been taken place, the Landlord recovers transfer charges from every transferee on a basis of future market price of land and building. The buyer have to comply with the said working of 6% of market value arrived by M./s. Sudarshan Housing Finance Ltd. and if not complied the said company does not give NOC to the transferor. In the instant case, the ld. CIT(A) upheld the action of the ld. AO by observing as under:- 3.1.5 As per the agreement,dated 08.10.2014, the vendor i.e M/s Janus Consultants Pvt Ltd has purchased the shop from builder M/s Sudarshan Housing and Finance Limited (SHFL). SHFL has acquired the perpetual leasehold rights to the commercial plot No.11, LSC Saini Enclave, Vikas Marg, Delhi-92 at a public auction held by the Delhi Development Authority (DDA) on August 24,1994. Thereafter, the DDA had executed the perpetual lease deed on October 13,1994 in favour of SHFL. It is perused from the above that the lease is of Plot and not of shop, and for the applicability of section 50C, the transfer should be of land or building or both. In this case, as per the agreement, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted for reference to DVO before the ld. AO. This request has been rejected by the lower authorities without any basis which action, in our considered opinion, is grossly against the provisions of the Act. Hence, in order to meet the ends of justice, we deem it fit and appropriate to remand this issue to the file of the ld. AO, with a direction to refer the valuation of subject mentioned property to the ld. DVO for determination of fair market value and also to consider the value fixed by the stamp duty authority in terms of Section 50C of the Act as on the date of sale and determine the sale consideration as per law. Accordingly, the ground No.1 raised by the assessee is allowed for statistical purposes. 4. The ground No.2 raised by the assessee is challenging the action of the lower authorities in ignoring the revised return along with revised computation of income filed by the assessee wherein the assessee seem to rectify the error in the claim of unabsorbed depreciation of earlier year of Rs.28,70,907/-. 4.1. We have heard ld. DR and perused the materials available on record. The assessee had originally filed its return of income on 30/09/2015 declaring Nil income under n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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