Law:

Section:

Section 142A of the Income-tax Act, 1961 - Estimate by Valuation Officer in certain cases - Assessment year 1994-95 - Assessee had sold a property consisting of land and factory building for Rs. 5 lakhs and Rs. 12.50 lakhs respectively - Permission was granted by appropriate authority under section 269UL (3) and sale consideration mentioned by assessee was also accepted - Assessing Officer, however, allocated Rs. 15 lakhs as sale consideration received for land and Rs. 2.50 lakhs for factory building which was a depreciable asset - Tribunal held that estimates made by both parties were not supported by any evidence, therefore, matter was to be restored to file of Assessing Officer for disposal afresh after getting valuation report from DVO - Assessing Officer on basis of valuation report held that sale consideration received by assessee was Rs. 21.42 lakhs and not Rs. 17.50 lakhs - Whether since assessee had applied under Chapter XXC and appropriate authority had accepted sale consideration mentioned by assessee, impugned enhancement made by Assessing Officer on basis of report of DVO was not justified - Held, yes [In favour of assessee] FACTS The assessee had sold a property consisting of land and factory building for Rs. 17.50 lakhs. As provisions of Chapter XXC were then applicable, the assessee had applied for permission and the same was granted under section 269UL(3) by the appropriate authority. Thereupon, the Assessing Officer computed long-term capital gain on sale of land and building at Rs. 16.52 lakhs. The assessee questioned the computation made by the Assessing Officer under the head 'long-term capital gains' on the ground that in respect of the depreciable assets, section 50 should have been applied. The Commissioner (Appeals) set aside the entire assessment and remitted the matter to the Assessing Officer for a fresh decision. In remand proceedings, the Assessing Officer, allocated Rs. 15 lakhs as sales consideration received for land and Rs. 2.50 lakhs as sale consideration received for the factory building which was a depreciable asset. The assessee had taken and computed the sale consideration of the land and building as Rs. 5 lakhs and Rs.…

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