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2014 (1) TMI 923 - AT - Income TaxAdoption of full value of consideration u/s 50C of the Act Held that:- The value determined by the valuation officer on reference made to him under section 50C(2) of the Act is binding on the AO - the provisions of section 50C and section 55A are on a different footing - the value given by the Valuation Officer is final and binding on the AO - In view of specific deeming provision of 50C, order of CIT(A) has to be upheld - As per the provisions of section 50C(ii) the valuation adopted by stamp value authorities has to be adopted - as assessee objected, the valuation was referred to DVO under the provision of Section 50C (2) and the DVO adopted a fair valuation which is correct and fair according to the provisions of law. Alteration in the cost of acquisition Held that:- The order of CIT(A) upheld to the extent of differentiating the agreements for the purpose of arriving at the cost of acquisition CIT(A) analysed the agreements and determined the original cost at Rs.3 lakhs and confirmed the order - What the ld. CIT(A) missed was that the value of Rs.3 lakhs paid by assessee was cost as on 22.10.1979 - As per the provisions of the Act, the assessee is entitled for valuation as on 01.04.1981 - This aspect was not considered by the AO and CIT(A) - assessee valued property as on 01.04.1981 and claimed indexation - the cost of acquisition has to be adopted only as on 01.04.1986 - There is a registered valuation report according to which the value as on that date was at 33 lakhs and indexed cost at 480/140 was at Rs.1,13,14,285 - thus, the assessee is entitled to claim cost as on 01.04.1986 and indexed cost - Assessee is not entitled to add original cost or lease rights if any, as the property value was arrived as on 01.04.1986 on the basis of valuation report filed by assessee - The AO is directed to modify the computation and allow the benefit under section 54 as claimed Decided partly in favour of Assessee.
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