Manjula Jaganathan Hariprasad Vs Assessment Unit (Madras High Court)
Madras High Court held that addition towards difference between purchase value and guideline value without awaiting report of valuation officer, as matter was referred to valuation officer, is clearly unsustainable.
Facts- The proceedings culminating in the impugned assessment order originated from the the return of income filed by the petitioner for Assessment Year 2017-18 on 11.08.2017. In the notice u/s. 148 of the Income-tax Act, 1961, the respondents proposed three additions to the income disclosed in the return of income. The first addition was in relation to the difference between the purchase price and the guideline value of the immovable property purchased by the assessee. The second addition was in respect of amounts received as rent from M/s.Sriprop Structures P Limited and the third addition was in respect of a contractual receipt.
As regards the first proposed addition, it was pointed out that the matter had been referred to the valuation officer of the Income-tax Department on 24.02.2023. It was further stated that the addition should not be made without a waiting the valuation report. An explanation was also provided with regard to the proposed 2nd and 3rd additions and it was contended that such additions are not warranted.
