SHRI K. NIRANJANIAH,CHENNAI vs. ITO, NCW - 8 (4), CHENNAI

Shri K.Niranjaniah, the assessee is engaged in the real estate business. While making the assessment for the assessment year 2014- 15, the Assessing Officer found that the assessee sold a property for a consideration which is lower than the guideline value adopted by the stamp value authority. Therefore, the Assessing Officer proposed to assess the guideline value. The assessee objected to it and hence the Assessing Officer referred the matter to the Valuation Officer. Since, the assessment was getting barred and the Valuation Officer has not sent the valuation report, the Assessing Officer completed the assessment by adopting the guideline value as the market value. Aggrieved, the assessee filed an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal. Aggrieved against that order, the assessee filed this appeal.

The Ld.AR submitted that the Ld.CIT(A) dismissed the appeal for the reason that the Valuation Officer has not sent the valuation report and no useful purpose would be served in waiting indefinitely for the valuation report. This is absolutely strange. The Revenue has referred the matter to the Valuation Officer. It has all powers to obtain the valuation report and then determine the value in accordance with law.

The assessee cannot be found fault for the delay caused by the statutory authorities and hence, the Ld.AR pleaded to allow the appeal. Per contra, the Ld.DR supported the orders of the lower authorities.

We heard the rival submissions. It is clear from the above that the Assessing Officer has not taken proper steps to obtain the valuation report till date. In the facts and circumstances, the assessee cannot be found fault and slapped with the tax for the failure of the statutory authorities, for not adhering to the time schedule. Therefore, we remit the issue back to the file of the Assessing Officer, who shall cause the Valuation Officer to furnish appropriate report within a reasonable time, furnish a copy to the assessee for his objection and after giving adequate opportunity to the assessee shall pass the order in accordance with law.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on Friday, 14th February, 2020 at Chennai.