IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES "A": DELHI
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND
SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
ITA.No.3572/Del./2016
Assessment Year 2012-2013
Shri Nikhil Agarwal,
9/49, 2nd Floor, Punjabi The Income Tax Officer,
vs., Ward-71(2),
Bagh West, New Delhi.
PIN-110026. PAN AHJPA7494E New Delhi.
(Appellant) (Respondent)
Smt. Rano Jain, Advocate,
For Assessee : Shri Pranshu Singhal, C.A. &
Ms. Mansi Jain, C.A.
For Revenue : Shri P.V. Gupta, Sr. D.R.
Date of Hearing : 18.04.2019
Date of Pronouncement : 18.04.2019
ORDER
PER BHAVNESH SAINI, J.M.
This appeal by Assessee has been directed against
the Order of the Ld. CIT(A)-21, New Delhi, Dated 25.04.2016,
for the A.Y. 2012-2013.
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ITA.No.3572/Del./2016 Shri Nikhil
Agarwal, New Delhi.
2. We have heard the Learned Representatives of both
the parties and perused the material available on record.
3. Briefly the facts of the case are that assessee filed
return of income declaring income of Rs.6,46,720/-. During
the relevant period, assessee has purchased half shares in two
flats i.e., (1) 401 & (2) 402, 4th Floor, Ruprang Cooperative
Housing Society, Juhu Verova Link Road, Seven Bungows,
Versova Andheri West, Mumbai-400061. The case was
referred-to the DVO, Mumbai-12 for fair market value as on
30.03.2012 of the said flats. However, the valuation report in
this case has not been received till the passing of the
assessment order. The A.O, therefore, asked the assessee to
show cause as to why the value of the property should not be
adopted at Rs 2.1 Crore each. The assessee raised the legality
of the proposed proceedings under section 55A read with
section 16A of the Wealth Tax Act 1957. The assessee
submitted that the A.O. is not competent to make any such
estimation for valuing fair market value of the property. The
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Agarwal, New Delhi.
A.O, however, did not accept the explanation of assessee and
in the absence of DVO report, estimated the fair market value
of the property and made addition of Rs.80,45,500/- under
section 69 of the I.T. Act, 1961, treating the same as
unexplained investment.
3. The assessee challenged the addition before the Ld.
CIT(A). The written submissions of the assessee is reproduced
in the appellate order in which assessee challenged the
reasons given by the A.O. for making the addition. The Ld.
CIT(A), however, held that A.O. was justified in making
reference to the DVO. Therefore, view of the A.O. in making
reference to the DVO was found justified and as per law. The
Ld. CIT(A), however, noted that report from the DVO has yet
not been received, therefore, A.O. was directed whenever
report of DVO is available, fresh Order may be passed, after
giving opportunity of being heard to the assessee. The
operative portion of the findings of the Ld. CIT(A) is reproduced
as under :
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ITA.No.3572/Del./2016 Shri Nikhil
Agarwal, New Delhi.
"So far as the valuation report of the DVO is
concerned it has come to my notice that till the date
of passing this assessment order, the impugned
valuation report was not received by the AO from the
DVO. In the light of the above facts and
circumstances of the case where valuation report
was still awaited I am constrained to hold that the
assessment order so passed by the AO based on
tentative estimates of fair market value, as adopted
by the AO, has not reached its finality. In the light of
the above facts, for want of finality of assessment in
the case in hand, I am not inclined to interfere at this
stage. In this regard, reference is invited to
provisions of section 142A of the I.T. Act according to
which on receipt of report from the valuation officer,
the AO may after giving the assessee an opportunity
of being heard, take into account such report in
making such assessment or re-assessment as per
the relevant provisions of the Act It is only after the
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ITA.No.3572/Del./2016 Shri Nikhil
Agarwal, New Delhi.
assessment reaches its finality that the appellant
would have legal remedy by preferring appeal, if
any, against the final assessment order to be passed
by the AO after taking into account the valuation
report of the DVO. The appeal is decided with
direction to AO as above."
3.1. The assessee challenged the addition of
Rs.80,45,500/- in the present appeal and Orders of the
authorities below on the above matter in issue.
4. After considering the rival submissions, we are of
the view that the matter requires reconsideration at the level
of the A.O. Learned Counsel for the Assessee pointed-out that
report of the DVO have been received now which is dated
06.08.2018 in which the DVO has taken the value of each Flat
at Rs.85 lakhs as on 30.03.2012 as is declared in the return
by the assessee. Learned Counsel for the Assessee, therefore,
submitted that matter may be sent back to the A.O. for
reconsideration of the issue in the light of the report of the
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Agarwal, New Delhi.
DVO. The Ld. D.R. also suggested that the matter may be
directed to the file of A.O. for reconsideration. In this view of
the matter and in the light of findings of the Ld. CIT(A) above,
it is clear that the Ld. CIT(A) has already directed that the
matter will be reconsidered by the A.O. whenever A.O. will
receive the report from the Valuation Officer. Now, the
valuation report has been received by the A.O. which is dated
06.08.2018. We, accordingly, set aside the Orders of the
authorities below and restore the matter in issue to the file of
A.O. with a direction to re-decide the same, by considering the
report of the DVO dated 06.08.2018, by giving reasonable,
sufficient opportunity of being heard to the assessee. Appeal
of assessee is allowed.
5. In the result, appeal of Assessee allowed.
Order pronounced in the open Court.
Sd/- Sd/-
(N.K. BILLAIYA) (BHAVNESH SAINI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Delhi, Dated 18th April, 2019
VBP/-
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ITA.No.3572/Del./2016 Shri Nikhil
Agarwal, New Delhi.
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT "A" Bench
6. Guard File
//By Order//
Asst. Registrar : ITAT : Delhi Benches :
Delhi.
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