M/S. NANDA TOURS AND TRAVELS,PUNE vs. INCOME-TAX OFFICER, WARD - 7 (3), PUNE

The only issue raised in this appeal is against the confirmation of addition on account of short term capital gain and long term capital gain.

Shorn off unnecessary details, it is seen that the Assessing Officer (AO) made the additions on account of long term and short term capital gain on the basis of stamp value. The assessee contended before the ld. CIT(A) that the AO ought to have referred the matter to the Departmental Valuation Officer (DVO) for substitution of the stamp value with the value to be worked out by the Departmental Valuer. The ld. CIT(A) did not find such a request having been made by the assessee before the AO. He, therefore, confirmed the addition.

I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of the assessee despite several notices. As such, I am proceeding to dispose of the appeal qua the assessee. It is seen as a matter of fact that the assessee made a request at least to the ld. CIT(A) that the stamp value is excessive and the AO ought to have made a reference to the DVO for substitution of full value of consideration in place of stamp value u/s.50C. Though the claim of the assessee was that such a request was also made before the AO but the ld. CIT(A) could not find it out from the record and hence confirmed the addition.

The Hon’ble Calcutta High Court in the case of Sunil Kumar Agarwal Vs. CIT (2014) 47 taxmann.com 158 (Cal.) has held in para 8 that: “Even in a case where no such prayer is made by the learned advocate representing the assessee, who may not have been properly instructed in law, the assessing officer, discharging a quasi judicial function, has the bounden duty to act fairly and to give a fair treatment by giving him an option to follow the course provided by law”. Taking into consideration the entire facts and circumstances prevailing in the instant case, I am of the considered opinion that the ends of justice would meet adequately if the impugned order is set- aside and the matter is restored to the file of AO. I order accordingly and direct him to make a reference to the DVO in terms of section 50C of the Act.

In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 03rd January, 2020.