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2014 (10) TMI 473 - AT - Income TaxDetermination of FMV of plot of land – Calculation of LTCG – Held that:- No reference to the DVO can be made u/s 55A of the Act - section 55A(a) of the Act very clearly at the relevant time provided that a reference could be made to the DVO only when the value adopted by the assessee was less than the fair market value - the value adopted by the respondent-assessee of the property at ₹ 35. 99 lakhs was much more than the fair market value of ₹ 6. 68 lakhs even as determined by the DVO - the AO referred the issue of valuation to the DVO only because in his view the valuation of the property as on 1981 as made by the respondent-assessee was higher than the fair market value. In the aforesaid circumstances, the invocation of section 55A(a) of the Act is not justified - section 55A(a) of the Act as existing during the period relevant to the AY 2006-07 - very clearly reference could be made to Departmental VO only if the value declared by the assessee is in the opinion of AO less than its fair market value - It is not clear as to whether the reference was made under clause 55A(a) or 55A(b)(ii) of the Act and if it was made under section 55A(b)(ii) then what were the relevant circumstances for making such a reference - Recording of reasons for invoking a particular section of the Act and justification for invoking the specific clause are not available and nor were they brought to our notice - As the value shown by the assessee was not less than the FVM, there was no justification for making any reference to the DVO, by the AO in the year under consideration. Amendment to the section 55A of the Act is effective from 01. 07. 2012 – thus, the order of the FAA is set aside – Decided in favour of assessee. Benefit of set off of unabsorbed depreciation – Held that:- The AO and FAA had decided the issue against the assessee, as it was not carrying out business activities during the year under appeal – following the decision in Commissioner of Income-tax, Hisar Versus G. TM Synthetics Ltd., Sirsa [2011 (2) TMI 150 - PUNJAB AND HARYANA HIGH COURT] - Section 32(2) of the Act relates to carry forward of unabsorbed depreciation - the unabsorbed depreciation allowance could be set off against the income under any other head even where the business was not carried on – Decided in favour of assessee.
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