ACEME ENGINEERS PRIVATE LIMITED,HYDERABAD vs. INCOME TAX OFFICER, WARD 1(1), HYDERABAD

PDF · subscribers
ITA 679/HYD/2024Status: DisposedITAT Hyderabad02 January 2025AY 2017-18Bench: SHRI K. NARASIMHA CHARY (Judicial Member), SHRI MADHUSUDAN SAWDIA (Accountant Member)8 pages
AI SummaryRemanded

What did the Tribunal hold?

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.

What were the 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.

What were the 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.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 50C,Section 154,Section 153B,Section 153A,Section 142A(1),Section 142A(5),Section 142A(6),Section 143(3),Section 148

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad

For Appellant: Dr. Sachin Kumar, Sr.DR

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.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →