Astik Mondal Vs ITO
ITA No. 1803/KOL/2019
Issue Before ITAT:
Whether it is fit case for remand where the Fair Market Value of certain property is determined without giving access to the assessee to DVO’s report and without considering the assessee’s objections to the valuation determined by the DVO
Held : YES by ITAT
– Assessee’s appeal allowed: KOLKATA ITAT
– The assessee was an individual.
– The assessee filed return of income for relevant AY.
– The AO while passing assessment order made addition of 12.8 lakh on account of long-term capital gain.
– On appeal, the CIT(A) confirmed the order of the AO. Aggrieved assessee filed appeal before tribunal.
– On appeal, issue before the tribunal was whether it is fit case for remand where the Fair Market Value of certain property is determined without giving access to the assessee to DVO’s report and without considering the assessee’s objections to the valuation determined by the DVO.
– ITAT have heard the arguments of both the sides and also perused the relevant material available on record.
– The assessee had submitted that the only dispute involved in the assessee’s case relates to the determination of the indexed cost of acquisition of the assessee’s share of property sold during the year under consideration.
– He had submitted that the fair market value of the property as on 01.04.1981 was claimed by the assessee on the basis of actual sale instance of the comparable property but the same was not accepted by the AO, who adopted the fair market value of the property as on 01.04.1981 on the basis of the valuation made by the DVO.
– He had contended that the copy of the DVO’s valuation report, however, was never given by the AO to the assessee and even the objections raised by the assessee inrespect of the valuation determined by the DVO before the CIT(A) were not properly considered by him.
– He had contended that even the sale instances relied upon by the assessee to justify the fair market value of the property as on 01.04.1981 taken by him were not properly appreciated either by the AO or by the CIT(A).
– He had contended that a similar issue involved in the case of co-owner Shri Samaresh Kumar Mondal, brother of the assessee, had already been sent back by the Tribunal to the AO for reconsideration vide its order dated 27.06.2018 passed in ITA No. 1276/KOL/2017 and urged that the case of the assessee may also be sent to the AO for deciding the same afresh after taking into consideration the objections raised by the assessee.
– A perusal of the order of the Tribunal dated 27.06.2018 passed in the case of Samaresh Kumar Mondal, however, shows that a similar issue involved in the said case in the identical facts and circumstances was remitted by the Tribunal back to the CIT(A) for fresh adjudication.
– Court, therefore, find it just and proper to set aside the impugned order of the CIT(A) and remit the matter back to him for deciding the same afresh after giving the assessee proper and sufficient opportunity of being heard and after taking into consideration the outcome of the decision in the case of Shri Samaresh Kumar Mondal on a similar issue.
– Held in Favour of Assessee.
Tag: Reference to DVO, opportunity of being heard to assessee, FMV & DVO, Assessee objection to DVO