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| The Tax Publishers2020 TaxPub(DT) 1304 (Del-Trib) INCOME TAX ACT, 1961
Section 142A
Reference of issue of valuation to DVO only on the basis of speculation alleging information in the form of newspaper report about enhanced property prices in the area without there being material/evidence/information on the basis of which it could be said that investment shown by assessee was understated and anything was paid over and above what was disclosed by the assessee was without justification and, consequently, no addition could be made on the basis of valuation made by DVO.
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Assessment - Valation - Reference to DVO - AO referred valuation to DVO only on the basis of newspaper report--AO allegation as to assessee having understated purchase consideration
Assessee made investment in certain property. AO invoked section 142A and made reference to DVO and accordingly, made addition on acount of difference between value determined by DVO and purchase consideration shown by assessee. Held: There was no reference whatsoever made by AO to any material/evidence/information on the basis of which it could be said that investment shown by assessee was understated and anything was paid over and above what was disclosed by the assessee. Thus, condition precedent for making reference to DVO by invoking section 142A was not satisfied. But AO had referred the issue of valuation to DVO only on the basis of speculation alleging information in the form of newspaper report about enhanced property prices in the area. In these circumstances, reference made by AO by invoking section 142A was without justification and, consequently, no addition could be made on the basis of valuation made by DVO.
Supported by:Sargam Cinema v. CIT (2011) 197 Taxman 203 (SC) : 20010 TaxPub(DT) 893 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06 & 2009-10
INCOME TAX ACT, 1961
Section 249 Rule 46A
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