C V SUNNY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Is it mandatory for the Assessing Officer to make a reference under Section 55A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') to the Valuation Officer in a case where he is of the opinion that the value of the asset as claimed by the assessee, which is based on the estimate made by a registered valuer, is less than its fair market value This is the substantial question of law to be answered in this appeal filed by the assessee.

(2.) The appellant/assessee had purchased 20.50 cents of land in the year 1975. On the same day, his son and wife had also purchased land comprised in the same survey number for the same price. The property purchased by them became capital asset on 06.01.1994. The appellant sold the aforesaid land on 19.01.2006. His son also sold the land, which was purchased by him in the year 1975, on the same day at the same rate of price.

(3.) The assessee filed return of income for the assessment year 2006-2007 on 18.07.2006 declaring his total income as Rs.6,28,480/-. The return was accepted under Section 143(1) of the Act but the assessment was reopened under Section 148 of the Act. The assessee then filed a revised return on 03.08.2009 declaring his income as Rs.11,09,320/-. The Assessing Officer completed the assessment under Section 143(3) read with 147 of the Act on 31.12.2010 on a total income of Rs.1,23,05,580/-.