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2012 (10) TMI 84 - ITAT AHMEDABADAddition on account of long term capital gain on sale of house property - alleged underestimation of value of the sale consideration by adopting lower rate - reference to DVO for estimating the fmv on date of sale as on 14-07-2005 as well as 1- 4-81 - CIT(A) deleted the addition on ground of holding the actions of A.O. in substituting the admitted sale consideration by the FMV arrived at by the DVO and substituting the admitted FMV as on 01- 04-1981 by the FMV arrived at by the DVO to be not in confirmity with the provisions of the Act -Held that:- In Section 48, the A.O. can compute the capital gain on the basis of full value of consideration received or accruing as result of the transfer of capital assets. as held by Apex Court, expression ‘full value consideration’ cannot be construed to the market value of the assets transferred but only means the full value of the things received by the transferor. The A.O. referred the case u/s 55A for fair market value of the capital assets transfer and substituted the value of the DVO in computing the capital gain tax but the full value of consideration as discussed above cannot be construed to the fair market value. The A.O. has also taken the value as on 1.4.81 at Rs.94 lacs in place of Rs.1.03 crore value declared by the assessee on the basis of registered approved valuer report. As per Section 55A, the A.O. can made the reference if estimated value made by the registered valuer is less than fair market value. In this case, the value estimated by the registered valuer was Rs.1.03 crore whereas the DVO had given fair market value at Rs.94 lacs. Therefore, clause (a) of section 55A of the Act could not be made applicable. Clause (b) of section 55A can be invoked only in any other case when value of the asset claimed by the assessee was not supported by an estimate made by a registered valuer. Value estimated by the DVO is less than valued estimated by the Government approved valuer. Further, the difference between value estimated by the DVO and adopted on the basis of registered valuer’s report, the difference is less than 15%. The A.O. has not brought on record any material to prove that the assessee had received much more whatever disclosed in the sale deed. Therefore, CIT(A) has rightly deleted the addition – Decided against Revenue
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