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Facts
The assessee appealed an addition of Rs. 4.04 lakhs to long-term capital gains for AY 2012-13. This addition arose from the difference between the actual sale price of Rs. 11 lakhs and the Departmental Valuation Officer's (DVO) valuation of Rs. 15.04 lakhs. The assessee contended that both valuations lacked concrete support.
Held
The Tribunal found that both the assessee's and department's valuations were based on assumptions. It deemed a lump sum addition of Rs. 1 lakh appropriate, granting the assessee relief of Rs. 3.04 lakhs, with a caveat that this estimation should not set a precedent.
Key Issues
Whether the addition to long-term capital gains, based on the difference between actual sale price and DVO valuation, was justified given the lack of concrete supportive material for both valuations.
Sections Cited
Section 147 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
O R D E R
This assessee’s appeal for Assessment Year 2012-13, arises against the order of CIT(A)/NFAC, Delhi dated 20.06.2024 in case No. ITBA/NFAC/S/250/2024-25/106587155 in proceedings u/s 147 of the Income Tax Act, 1961 (in short “The Act”).
Heard both parties at length. Case files perused.
It emerges during the course of hearing that the assessee source of substantive grievance canvassed herein challenges correctness of both the lower authorities action making addition of Rs. 4.04 lakhs, in computation of the long term capital gains, which represents difference between actual sale price of Rs. 11 lakhs vis-à- vis that determined as Rs. 15.04 lakhs by the DVO; respectively. 4. Both the learned representatives reiterate their respective stands against and in support of the impugned addition. It is noticed in this factual backdrop that the assessee’s as well as department’s valuation are simply based on mere assumptions and presumption than based on any concrete supportive material. This being the Page | 1 Jeevan Ohri clinching case, the tribunal is of the considered view that a lump sum addition of Rs. 1 lakh only in the given facts would be just and proper with a rider that instant estimation shall not be treated as a precedent in any other case or assessment year, as the case may be. The assessee gets relief of Rs. 3.04 lakh in other words. Necessary computation shall follow as per law. 5. This assessee’s appeal is partly allowed. 6. Order pronounced in the open court on 24/12/2024.