- (1.) This appeal is directed against a judgement and order dated 28th December, 2007 passed by the learned Income Tax Appellate Tribunal, 'D' Bench, Kolkata in I.T.A.NO.1006/Kol/2006 and Cross - objection No.57/Kol/2006. The appeal was preferred by the Revenue and the Cross -objection was filed by the assessee both pertaining to the assessment year 1996 -1997.
(2.) Aggrieved by the order of the learned Tribunal, the assessee came up in appeal which was admitted on 10th December, 2008 and the following questions of law were formulated : "I. Whether on the facts and in the circumstances of the case order of Tribunal was erroneous in law in ignoring the inherent scheme in valuation certain assets (as was in the present case) as per Section 55A (2)(b) of the Income Tax Act, 1961 and directing the matter to be redone in the light of a special Bench of the Tribunal. II. Whether on the facts and in the circumstances of the case the order of the Tribunal was perverse on the question of legality of reference under Section 55A of the Income Tax Act, 1961 having been passed in total disregard of principles of legal precedents -
(3.) The factual background behind the controversy is to be found in paragraph -4 of the impugned judgement which reads as follows : "Brief facts are that the assessee did not file its return of income for assessment year 1996 -97. The Assessing Officer while perusing Balance Sheet for the assessment years 1995 -96 and 1997 -98 observed that there was a substantial increase in the capital of the assessee from 31.3.1995 to 31.3.1997. Considering the fact, the Assessing Officer issued notice u/s. 148. In response to which the assessee has filed a return of income disclosing net loss of Rs.6,96,180/ -. The Assessing Officer found that during the year the assessee has sold a property owned by it for Rs.97,50,000/ -. Such property was purchased by the assessee on 31.7.1979 at a purchase price of Rs.2,80,882/ -. However, while calculating the long term capital gain the assessee adopted the market value of the property at Rs.34,55,000/ - as on 1.4.1981. The Assessing Officer considered such estimation of fair market value at a higher side and referred the matter to DVO who vide his report dated 3.2.2005 computed the fair market value of the property at Rs.3,77,250/ - and computed the assessment u/s. 143(3)/147 on a total income of Rs.79,65,410/ -." ;