HAJI UMER ALI MOHAMED FURNITUREWALA,MUMBAI vs. INCOME TAX OFFICER WARD 22(1)(5), MUMBAI

The Ld A.R submitted that the assessee had sold a shop during the year under consideration. The sale consideration was less than the stamp duty valuation and hence the AO assessed the difference between the sale consideration and stamp duty valuation as income of the assessee u/s 50C of the Act. Before the Ld CIT(A), the assessee filed a Registered Valuer’s report, wherein the valuer had specifically pointed out that the stamp duty authorities have valued the property considering ground floor of the building also, while the assessee has sold only the first floor. The valuation arrived at by the Registered Valuer was also well within the limits provided in sec. 50C of the Act. He submitted that the Ld CIT(A) did not consider the Registered Valuer’s report at all and hence great prejudice is caused to the assessee. Accordingly, he prayed that the matter may be restored to the file of the AO for examining it afresh by duly considering the Registered Valuer’s report.

With regard to the cash deposits made into the bank account, the Ld A.R submitted that they were made out of cash withdrawals made from the bank account of the assessee and his son. He submitted that the assessee had substantiated the above submissions by duly furnishing copies of relevant bank accounts, but the tax authorities have made the addition without properly examining those documents. Accordingly, he prayed that this issue may also be restored to the file of the AO.

We heard Ld D.R and perused the record. Having regard to the submissions made by Ld A.R, we are of the view that both the above said issues require fresh examination at the end of the AO. Accordingly, we set aside the order passed by Ld CIT(A) on the above said issues and restore them to the file of the AO for examining them afresh. After affording adequate opportunity of being heard to the assessee, the AO may take appropriate decision in accordance with law. 5. In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.