Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 710 - AT - Income TaxReference made u/s 55A - Transaction of immovable property against the actual deed of conveyance Adoption of FMV as on 01.04.1981 - Computation of LTCG Held that:- The long term capital gains arising out of transaction of this property will be assessed in AY 2006-07 and not in AY 2005-06 - following the decision in Commissioner of Income-tax Versus Umedbhai International P. Ltd. [2010 (2) TMI 631 - Calcutta High Court] - once the assessee has filed approved valuer's report, which is in the case of the assessee is dated 18.10.2006 valuing the property as on 01.04.1981 at ₹ 24,03,838/-, is final - No further reference u/s. 55A can be made for estimating the fair market value of the property for determining the value as on 01.04.1981 unless and until the AO forms an opinion that value shown by the assessee was less than fair market value Decided against revenue. Reference made to DVO u/s 50C(2) - Whether the value adopted by the AO based on deemed value determined on the basis of circle rates by stamp valuation authority at ₹ 1,16,58,995/- is to be taken for the purpose of computation of long term capital gain or the property is to be referred to DVO for determining the fair market value in term of section 50C of the Act Held that:- Following the decision in Sunil Kumar Agarwal Versus Commissioner of Income Tax, Siliguri [2014 (6) TMI 13 - CALCUTTA HIGH COURT] - the value of the property estimated by DVO as on the date of sale is to be taken as the final consideration for the purpose of computation of Long Term Capital Gains u/s. 50C of the Act - The assessee sold the property for a total consideration of ₹ 25 lacs during the relevant financial year relevant to this assessment year - The AO as well as CIT(A) has taken the value as adopted by Sub-registrar based on circle rate for assessing the long term capital gain arising out of sale of the above property - the value of the property estimated by DVO as on the date of sale is to be taken as the final consideration for the purpose of computation of Long Term Capital Gains u/s. 50C(2) of the Act the AO is directed to refer the matter to DVO u/s 50C(2) of the Act and also allow opportunity of being heard to the assessee Decided in favour of assessee.
|