The Income Tax Appellate Tribunal(ITAT) “SMC” Bench, Mumbai, has recently, in an appeal filed before it by an assessee, held that the Assessing Officer (A0), shall compute the capital gains only after considering the value as determined by the Department Valuation Officer.
The aforesaid observation was made by the Tribunal when an appeal was preferred before it by an assessee, challenging the impugned order dated 30/09/2019, passed under section 250 of the Income Tax Act, 1961, by Commissioner of Income Tax (Appeals)– 40, Mumbai, for the assessment year 2006–07.
The ground of the appeal as raised by the assessee is that on the facts and in law, the Commissioner of Income Tax (Appeals), CIT (A), has, after calling for the valuation Report from the department valuer and receiving the same on 26/06/2014 as passed by Asst. Valuation Officer, Valuation cell, Thane, bringing the value down to Rs.7.10,000/- from Rs.12,84,000/-, failed to take any cognizance of the same, the assessee was pleading the deletion of the said addition made, which according to her was unjustified.
The Departmental Representative vehemently relied upon the orders passed by the lower authorities, hearing the Authorised Representative’s submission that during the pendency of appellate proceedings before the learned CIT(A), the report from the Department Valuation Officer regarding the value of the property sought was not considered by the CIT(A) while dismissing the assessee’s appeal, the Tribunal observed as follows:
“We have considered the rival submissions and perused the material available on record. We find that on 26/06/2014, the Asstt. valuation Officer, Valuation Cell, Income Tax Department, the Thane, had prepared a valuation report under section 55A / 50C of the Act determining the fair market value of the property namely Power Loom Gala, MH1441, Near Kaneri, Bhiwandi, as of 30/12/2005, at Rs.7,10,000. As per the assessee, the report from the aforesaid Department Valuation Officer was sought by the learned CIT(A) during the pendency of its appeal.”
“Since the impugned addition under the head “Long Term Capital Gain”, which was upheld by the learned CIT(A), has been made on the basis of the value determined by the Registration Authority without taking into consideration the report of the Department Valuation Officer, we deem it fit and proper to restore this issue to the file of the Assessing Officer for de novo adjudication”, it added.
“The Assessing Officer is directed to compute the capital gains after considering the value, as determined by the Department Valuation Officer”, the Bench concluded allowing the assessee’s appeal.
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