MANGAT RAI MALIK,NOIDA vs. DCIT, CIRCLE-2, NOIDA

The sum and substance of the grievance of the assessee is that the CIT(A) erred in dismissing the appeal by treating it as a defective appeal. On merits the assessee claims that the addition made u/s. 50C of the Act on the basis of the value adopted for the purpose of stamp duty should be deleted as the AVO has valued the plot and the difference in the value is less than 5%.

Briefly stated the facts of the case are that during the year under consideration. The assessee sold plot of land at sector-46, Noida on 10.07.2009 for Rs.26 lacs. However, the stamp was paid on Rs.37.42 lacs.

Invoking the provisions of section 50C of the Act. The Assessing Officer adopted the total sale consideration at Rs.37.42 lacs and made the addition of Rs.11.42 lacs.

The assessee agitated the matter before the CIT(A) but the CIT(A) dismissed the appeal of the assessee treating to be a defective appeal.

Before me the counsel for the assessee stated that during the course of the assessment proceedings objection was raised to refer the valuation of the sold plot to the Valuation Officer. On such objection the Assessing Officer made a reference to the Valuation Officer, Meerut u/s. 50C (ii). Since the valuation report was not received and the assessment was getting barred limitation, the Assessing Officer made the impugned addition. It is the say of the counsel that a proper appeal was filed before the CIT(A) but for the reasons best known to the CIT(A) he dismissed the appeal as defective.

Per contra the DR strongly supported the findings of the Assessing Officer.

I have given a thoughtful consideration to the orders of the authorities below. The Assessing Officer at para-4 of his order has clearly mentioned that matter was referred to the Valuation Officer but since the assessment was getting barred by limitation he did not wait for the valuation officer’s report and completed the assessment.

I find that the proper appeal was filed before the CIT(A) but the CIT(A) in his wisdom dismissed it as a defective appeal.

Before me the valuation report of the Valuation Officer has been filed which clearly shows that the value estimated by him at Rs.27 lacs and the value declared by the assessee at Rs. 26 lacs has only a difference of Rs.1 lac which difference is about 3.8 percent.

In the interest of justice and fair play I restore the matter to the files of the Assessing Officer. The Assessing Officer is directed to decide the issue afresh after considering the valuation report of the Valuation Officer.

In the result, the appeal is treated as allowed for statistical purpose.