Prem Lata Gupta Vs ACIT (ITAT Delhi)
A search on the Oswal Group led to assessment u/s 153A for Assessee, who had declared ₹7.47 lakh income. AO reduced her indexed cost of construction & added ₹49.03 lakh as long-term capital gain; CIT(A) partly upheld the addition at ₹28.64 lakh, rejecting her registered valuer’s report.
ITAT noted that the valuer had personally inspected the property, provided detailed specifications, & that neither the AO nor CIT(A) made a reference to the DVO as required by Section 55A. Relying on Jaswin Kaur Sethi v. DCIT & Vidhi Agarwal (All HC), it held that the valuer’s report has evidentiary value & cannot be discarded on assumptions or by using circle rates.
Held: The AO must recompute capital gains by considering the valuer’s report; matter remanded.
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal filed by assessee is against order dated 27.05.2022 of Learned
Commissioner of Income-Tax (Appeals)-3, Gurgaon (hereinafter referred as “the Ld. CIT(A)”) under Section 250(6) of the Income Tax Act, 1961 ( hereinafter referred as “the Act”) arising out of assessment order dated 31.12.2019 of the Learned Assessing Officer/Deputy Commissioner of Income Tax, Central Circle, Karnal (hereinafter referred as “Ld. AO”) under Sections 143(3) of the Act, 1961 for assessment year 2017-18.
