SAMBANDA MUDALIAR MANIVANNAN,CHENNAI vs. ITO, VELLORE

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ITA 1772/CHNY/2016Status: DisposedITAT Chennai23 October 2017AY 2011-123 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the AO had not complied with Section 50C(2) by not obtaining a DVO report. Therefore, the issues were restored to the AO for re-adjudication after complying with the said section.

What were the facts?

The assessee sold a piece of land, and the Assessing Officer (AO) applied Section 50C without referring the valuation to the Departmental Valuation Officer (DVO) as per Section 50C(2). The assessee requested a re-adjudication by the AO after obtaining a DVO report.

What were the issues?

Whether the AO correctly applied Section 50C without referring the valuation to the DVO as mandated by Section 50C(2).

Which sections of the Income-tax Act were involved?

Section 50C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI GEORGE MATHAN, & SHRI A. MOHAN ALANKAMONY

Hearing: 23.10.2017Pronounced: 23.10.2017

आदेश / O R D E R

PER GEORGE MATHAN, JUDICIAL MEMBER:

1.

the Order of the Commissioner of Income Tax (Appeals)-13, Chennai, in dated 29.02.2016 for the AY 2011-12.

ITA No.1772/Mds/2016 :- 2 -:

2.

Mr. ARV.Sreenivasan, JCIT, represented on behalf of the Revenue and Mr. S.Satyananarayanan, Adv., represented on behalf of the assessee.

3.

It was submitted by the Ld.AR that the assessee had purchased a piece of land in 2004 and had entered into sale agreements in 2007 for the sale of the said land. The Sale Deed was registered only in 2010. It was a submission that the AO had applied provisions of Sec.50C without considering the assessee’s objections for reference to the DVO in view of the provisions of Sec.50C(2) of the Act. It was a submission that the assessee had no objection if the issues are restored to the file of the AO for re-adjudication after obtaining the Valuation Report from the DVO in view provisions of Sec.50C(2) of the Act.

4.

In reply, the Ld.DR submitted that he had no objection if the issues are restored to the file of the AO for the purpose of verification of the valuation with the DVO in line with Sec.50C(2) of the Act.

5.

We have considered the rival submissions. As it is noticed that the AO has not complied with the provisions of Sec.50C(2) of the Act and has not obtained the Valuation Report from the DVO, the issues in this appeal are restored to the file of the AO for re-adjudication after complying with the provisions of Sec.50C(2) of the Act.

ITA No.1772/Mds/2016 :- 3 -:

6.

In the result, the appeal filed by the assessee is partly allowed.

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