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2019 (11) TMI 1092 - ITAT JAIPURValuation of the property - determining the fair market value - valuation determined by the DVO - determining the fair market value on the basis of the comparable sale instances of the similarly situated property - residential property v/s commercial property - DVO has determined the fair market value of the property, the AO has to consider the same for the purpose of section 56(2)(vii) - HELD THAT:- Property which is otherwise residential as per the record cannot be treated as a commercial property for the purpose of determining the fair market value though the locational advantage being a factor, influence the value of the property. However, so long the property is a residential property it cannot be treated as commercial property. Fair market value determined by the DVO and considered by the AO is not sustainable in law as an arbitrary exercise without considering the relevant factors. The assessee has already brought on record the comparable sale instances and, therefore, instead of going by the DLC rates of the area and that too for commercial property, the fair market value has to be determined based on the actual character of the property and the sale instances of the similarly situated property. In the case in hand, when the sale instances are available and which support the case of the assessee that the fair market value of the property cannot be more than the purchase consideration, then no addition is called for under section 56(2)(viii) of the Act. The addition by the AO and sustained by the ld. CIT (A) is deleted.
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