Revisionary jurisdiction by the Pr. CIT solely based on the valuation officer’s report is not justified: Chennai ITAT

 

 

The Chennai ITAT bench has held that the exercised of a revisionary jurisdiction by the Pr. CIT solely based on the valuation officer’s report was not justified. Moreover, the absence of any findings from the Pr. CIT indicating that the property’s market value exceeded the declared value by the assessee was notable. This position finds support in a legal precedent established by the Hon’ble High Court of Madras in CIT vs. Smt. Padmavathi (120 Taxmann.com 187).

The court held that since the guideline value was only an indicator and is fixed by the state government for the purpose of calculating stamp duty on a deed of conveyance, merely because the guideline value was higher than the sale consideration shown in the deed of conveyance cannot be the sole reason for holding that the assessment was erroneous and prejudicial to the interest of revenue.

This was held in the case of Deepika Subramanian v. PCIT, ITA No.394/Chny/2023.
The copy of the order is as under:

 

The copy of the order is as under:

 

1690361606-ITA 394- 2023 DEEPIKA