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TMI Blog2024 (2) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered by the learned DVO. Thus in view of the independent sale instances of similar sale consideration, it cannot be said that the report of the learned DVO suffers from any infirmity. As nothing was pointed out before the learned CIT A that the valuation report prepared by the learned TPO suffers from any infirmity, it cannot be said that the learned CIT A has blindly accepted the report of DVO. We have considered the submission made by the assessee on 27/3/2023 to the CIT A placed at page number 48 67 of the paper book to reach at this conclusion. In view of the above facts, we do not find any infirmity in the order of the learned CIT A in making the addition to the total income of the assessee being the difference between the actual consideration and the valuation determined by the learned district valuation officer. Thus we, uphold the orders of the learned CIT A in confirming the addition under section 56 (2) (x) (b) (b) of the act as the assessee has purchased the property for a consideration which is less than the value determined by the learned departmental valuation officer in accordance with the provisions of section 50 C - Decided against assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending and borrowing of funds besides the business of management consultancy. During the year, the assessee has earned income under head income under the head profits and gains of business and profession and income from other sources. Assessee filed return of income on 29/9/2018 at total income of ₹ 216,825,670/ . It was selected for scrutiny by issue of notice under section 143 (2), draft order was passed on 20/4/2021. The learned assessing officer has made an addition of ₹ 115,505,907/ under section 56 (2) (x) (b) of the act. This is only the dispute between the parties before us. 04. The fact shows that i. Assessee purchased office premises for consideration of ₹ 168,000,000 being suite no B, Ground floor, Block III, Bakhtawar Commercial society, Plot no 229, Backbay Reclamation Scheme, Nariman point, Mumbai 21 on 16/12/2017 admeasuring 5350 sq Ft. , ii. Stamp Duty valuer of The property is Rs 28,35,05,907/- , iii. Property is valued by Registered valuer S D Thakre Associates on 25/08/2017 at Rs. 16,88,50,000/- , [ submitted as additional evidence before ld CIT (A) ] iv. On remand to LD AO, It is valued by District valuation officer as per valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he application of the additional evidence admission by the assessee referred the matter to the learned that assessing officer for submission of the remand report on admission of the additional evidence. x. The learned AO In remand report dated 23/1/2023 has categorically stated that the assessee has already submitted the valuation report at the time of the assessment and the learned faceless assessing officer did not refer the matter to the district valuation officer for valuation in terms of clause 2 of section 50 C, then He referred matter to the DVO. xi. On receipt of Report of DVO, addition reduced by the ld CIT (A) based on Report of DVO at RS. 2,58,86,000/- [ Valuation of DVO at Rs 19,38,86,000/- less Actual Consideration of Rs 16,80,000/-] 05. Against this appellate Order, assessee is in appeal. At first instance, the learned authorized representative submitted that there is a delay of 14 days in filing of the appeal by the assessee. He submitted the fact that appellate order was passed on 18th/7/2023 however, the physical copy of the order was received by the assessee on 1/8/2023 consequent to that appeal was electronically filed on 18/7/2023 however, physical copi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer authorities. It was further submitted that the report of the district valuation officer is an export report, which binds the assessing officer as per mandate of the law. Therefore, the argument that it is blindly accepted by the revenue authorities is beyond any comprehension is not sustainable. He further submitted that the decision of the honourable Supreme Court does not have any bearing on the issue when there is an anti-avoidance law enacted under section 56 (2) of the act. It was submitted that there is no infirmity in the order passed by the learned lower authorities. With respect to the decision cited by the learned authorized representative. It was submitted that the decision of Lahasa constructions private limited (357 ITR 671); Puneet Shabarwal 330 ITR 485 and Smt Suraj Devi 328 ITR 604 (Delhi) are not on the provision of law, which has resulted into the addition. 010. We have carefully considered the rival contention and perused the orders of the lower authorities. The fact has already been narrated which shows that assessee has purchased the property at an agreed consideration of ₹ 168,000,000/ , which has the stamp duty value of Rs. 28,35,05,907/-, valued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rict valuation officer. The district valuation officer issued notice to the assessee on 7/2/2023 asking for the several information. Assessee submitted such details, which are mentioned at final valuation report paragraph number 1.4. As per paragraph number 2.4 inspections was carried out on 17th/2/2023 along with the representative of the assessee. It is also considered that the demand for office premises in that locality is reduced. It is also noted that as per annexure I, the district valuation officer considered six instances of sales of nearby properties and in the nearby timelines. According to the six instances, the average rate per square meter is approximately ₹ 3 lakhs per square meter. The view adopted 3,17,176/ rate per square meter. While valuing, he considered the report of the valuer and stated that the valuer has not considered any sale instances of nearby properties and does not have any basis for valuation. Therefore, report of registered valuer was rejected. Instead of that, the district valuation officer considered the sale instances of the same building in the same time. The preliminary valuation report was also submitted to the assessee and an opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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