Assessment giving effect to Tribunal order: Scope: A.Y. 1994-95: Capital gains: Sale of property and factory building: Sale consideration accepted by AO: Tribunal referring back the question of bifurcation and apportionment of sale consideration between land and building: AO enhancing sale consideration: Not justified.

On appeal by the assessee, the Delhi High Court reversed the decision of the Tribunal and held as under:

“(i) The Tribunal had referred back the question of bifurcation and apportionment of the sale consideration of Rs.17.5 lakh as between the land and the factory building. To this extent, the report of the Valuation Officer was required.

(ii) The Departmental Valuation Officer and the Assessing Officer were not required or permitted by that order to go into to question and examine the total sale consideration as the assessee had applied under Chapter XX-C and the Appropriate Authority had accepted the sale consideration mentioned by the assessee. The sale consideration and the quantum thereof was never in question or doubt. This was not the aspect to be reexamined.

(iii) Thus the enhancement by the Assessing Officer of the sale consideration from 17.5 lakh to Rs.21,42,502 was not justified and as per law.

(iv) According to the report of the Depatmental Valuation Officer, the bifurcation and apportionment of the sale consideration towards the land and the factory building by the assessee had been accepted.

(v) In view of the above, the question of law is answered in favour of the assessee appellant.”