INCOME TAX ACT, 1961

Section 55A

Capital gains - Reference to DVO - Sale consideration of house vis-a-vis undisclosed capital gains -

Assessee and her mother-in-law Smt. Harbhajan Kaur, jointly purchased a built up house in the year 2012. The share of the assessee in the said house is 25% and share of her mother-in-law is 75%. Subsequently, search and survey operation was conducted at the premises of a company, its group companies and directors of those companies. On the basis of the said operation, AO issued notice under section 153C to assessee. The assessee requested to treat return already filed as return in response to the notice under section 153C. AO referred the question of valuation of the properties purchased by assessee during the relevant year. Accordingly, addition of difference in values as declared by assessee and as opined by DVO, was made by AO.Held: Since no material was found during the search to justify reference to DVO, therefore, valuation arrived at by the DVO would be of no consequence. DVO's report was not reliable being based on incomparable sales and AO had not pointed out any corroborative evidence to show that assessee had made investment in question more than the amount declared by her during assessment proceedings. Therefore, addition was deleted.

Followed:CIT v. Abhinav Mittal (2013) 351 ITR 0020 (Del) : 2013 TaxPub(DT) 0679 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15 & 2015-16

INCOME TAX ACT, 1961

Section 143(3)

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