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2020 (2) TMI 1522 - ITAT SURATCalculation of long-term capital gain - methods of valuation of land - Acceptability of weightage of Registered Valuer report - HELD THAT:- We are of the considered opinion that these were not additional evidence under Rule 46A, hence, the ld. CIT (A) ought to have given weightage of Registered Valuer report of B. H. Patel. There are three methods of valuation of land first one relates to sale instances multiplied by 11.94 factors, which is based on Hon`ble Supreme Court and Hon`ble High Court judgements. Second method is to consider increase in agricultural land price per month one percent. Third method is based on reverse method per year reduction of 10% of Jantri rate/Circle rates. The Government Registered Valuer of the assessee has based his valuation report on the average out of these three method for valuation of land, which in our opinion is correct method to be considered, in the case, where no specific sale instances of relevant period are available Therefore, we are of the view that the Registered Valuer has quite considerate in taking rate at 600 per sq. meter as against ₹ 833 being average rate. As considered the average of three method and has relied upon sale instances of sale price prevalent in the neighborhood in the near about dates of 01.04.1981 . No other factors to determine the value of assets as on 01.04.1981 while the Registered Valuer has examined the relevant factors, which is important to estimate the market value of the land - the valuation report of B.H. Patel in the case of the assessee is quite reasonable and therefore, the issue is decide in favour of the assessee. Accordingly, the AO is directed to apply rate of ₹ 600 per sq. meter for calculation if long-term capital gain in the hands of the assessee. Accordingly, Ground No. 1 to 3 of appeal are allowed. Non-admission of claim of deduction under section 54B on the ground that it was not made during the course of assessment proceedings - HELD THAT:- We find that that Appellate Authorities have power to admit bona fide claim of deduction if is made during appellate proceedings before them. The decision relied by the assessee supports its case. Therefore, we are of the considered opinion that claim of additional ground is admissible and the AO should be allowed deduction under section 54B of the Act if consideration are prescribed in that section are satisfied. Hence, we allow these grounds of appeal.
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