AO cannot calculate cost of acquisition on the basis of his own assumption

Savitri Devi Vs ITO (ITAT Amritsar)

The entire issue is in two parts, one is legal issue by challenging the jurisdiction of notice u/s 148 and the jurisdiction of the ld. AO related to calculation of capital gain of the assessee without referring the issue to DVO. The last issue was challenged by the assessee in ground no. 4. After a thoughtful consideration from all four amended grounds, we found that the assessing authority had passed the order beyond his jurisdiction by calculating the cost of acquisition on basis of his own assumption. So, the entire issue is setting aside to the ld. AO and the issue should be referred to DVO for considering the cost of acquisition of the property before computing the total income. Both the revenue and the counsel of the assessee had not made any objection for remanding back the issue before the ld. AO. Needless to say, that the AO shall provide proper and adequate opportunity of being heard to the assessee in set aside proceedings. The evidence/explanation submitted by assessee in its defiance shall be admitted by the AO, and adjudicated on merits in accordance with law.

FULL TEXT OF THE ORDER OF ITAT AMRITSAR

The instant appeal of the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), Bathinda, [in brevity the ld. CIT(A)] bearing appeal no.145, 147, 129 & 146-IT/17-18, date of order 22.02.2019, the order passed u/s 250 (6)of the Income Tax Act 1961, [in brevity the Act] for A.Y. 2010-11. The impugned order was emanated from the order of the ld. Income Tax Officer, Ward-2(1), Bathinda, (in brevity the AO), order passed u/s 143/147 of the Act date of order 3 1.10.2017.

2. The assessee has taken the following grounds which reads as under:

Please become a Premium member. If you are already a Premium member, login here to access the full content.