LATE SMT.SUSHILA SHAH REP BY NIKHIL NANDAN C. SHAH,HYDERABAD vs. INCOME TAX OFFICER, WARD-5(3), HYDERABAD

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ITA 527/HYD/2018Status: DisposedITAT Hyderabad19 February 2021AY 2007-083 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that a reference to the DVO under Section 50C(2) is mandatory, even if the assessee does not request it. The matter was restored to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee's appeal concerns the addition of alleged capital gains of Rs. 11,76,540/- on the transfer of a capital asset. The lower authorities invoked Section 50C of the Act without making a statutory reference to the DVO.

What were the issues?

Whether the Assessing Officer was required to make a reference to the DVO under Section 50C(2) before invoking Section 50C, and whether the omission to do so vitiates the assessment.

Which sections of the Income-tax Act were involved?

Section 50C,Section 50C(2)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD

Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU

BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessment Year: 2007-08 Late Smt. Sushila C.Shah, Income Tax Officer, Rep. by Nikhil Nandan Vs Ward-5(3), C.Shah, HYDERABAD HYDERABAD [PAN: AEYPS0420G] (Appellant) (Respondent) For Assessee : Smt. S.Sandhya, AR For Revenue : Shri Rohit Mujumdar, DR Date of Hearing : 08-02-2021 Date of Pronouncement : 19-02-2021 O R D E R PER BENCH :

This assessee’s appeal for AY.2007-08 arises from the CIT(A)-4, Hyderabad’s order dated 22-12-2017 passed in appeal No.0250/15-16/ITO, Wd.5(3)/CIT(A)-4/Hyd/17-18, in proceedings u/s.144 r.w.s.148 of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.

2.

The assessee’s sole substantive grievance pleaded in the instant appeal challenge correctness of both the lower authorities’ action invoking Section 50C of the Act thereby adding the alleged capital gains of Rs.11,76,540/- on account of transfer of the relevant capital asset; in the course of assessment, as upheld in the CIT(A)’s lower appellate order.

3.

Learned departmental representative fails to rebut the clinching fact at the outset itself that neither of the lower authorities had made the statutory reference to the DVO u/s.50C(2) of the Act. The Revenue’s stand is that no such request came from the taxpayer’s side. We find no merit in the Revenue’s instant stand. Hon'ble Calcutta high court’s decision Sunil Kumar Agarwal Vs. CIT (2014) [372 ITR 83] (Cal) that a reference to the DVO is mandatory in Sec.50C proceedings even if the assessee concerned does not raise any such prayer. We therefore deem it appropriate to restore the instant sole issue back to the Assessing Officer for his afresh adjudication as per law. The assessee shall be at liberty to raise all factual as well as legal pleas in the consequential proceedings.

4.

This assessee’s appeal is treated as allowed for statistical purposes in above terms.

Order pronounced in the open court on 19th February, 2021

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