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Facts
The assessee company sold an immovable property but failed to file its return of income for A.Y. 2017-18. The AO initiated reassessment under Section 147 and, applying Section 50C, adopted the stamp duty value as deemed sale consideration. Although the assessee requested a Valuation Officer (DVO) reference due to the property's condition, the AO completed the assessment without the DVO report, and the CIT(A) upheld this ex-parte.
Held
The Tribunal observed that the Valuation Officer is statutorily obligated under Section 142A(6) to submit its report within six months, which was not done for over three years. Therefore, the AO's determination of capital gain based solely on stamp duty value was unsustainable. The case was set aside to the AO with directions to either consider the DVO report if received within the statutory timeline or, if not, to adopt the actual sale consideration disclosed by the assessee.
Key Issues
Whether the Assessing Officer can finalize an assessment under Section 50C based on stamp duty value without waiting for the Valuation Officer's report, and what consideration should be adopted if the report is not received within the statutory period.
Sections Cited
147, 144, 50C, 154, 153B, 153A, 142A(1), 142A(5), 142A(6), 143(3), 148
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Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-
1. 1. निर्धाररती/The Assessee : SEL Resources Ltd, Plot No.26, Amar Society, Kavuri Hills, Jubilee Hills, S.O. Shaikpet, Hyderabad. 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward – 3(1), Hyderabad.