TMI Blog2019 (3) TMI 1889X X X X Extracts X X X X X X X X Extracts X X X X ..... ue comes to around 5.8% approximately and Ld. CIT(A) by relying on the decision of Hon ble Supreme Court in the case of C.B. Gautam [ 1992 (11) TMI 1 - SUPREME COURT] and decision of Krishna Enterprises [ 2016 (12) TMI 52 - ITAT MUMBAI] decided the issue in favour of the assessee by holding that the difference between the fair market value as per DVO and the value as per agreement is around 5.8% which is not to be considered for making addition under section 50C and thus deleted the addition - We do not find any infirmity in the order of Ld. CIT(A) or any reason to deviate from the finding of the Ld. CIT(A). Accordingly, we uphold the order of Ld. CIT(A) by dismissing the appeal of the Revenue. - ITA No. 2954/MUM/2017 - - - Dated:- 14-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eplied by the assessee vide letter dated 27.01.2015. The assessee submitted before the AO that the rate for the said plot was agreed to be sold happened much before the change in the value as per ready recknor. The value has been increased on 01.01.2012 when per square meter rate as per agreement was ₹ 36,000/- whereas the said rate has been increased from ₹ 1,112 to ₹ 37,900/- per sqr. mtr. which works out to ₹ 5,15,29,528/-. As per AIR information the value mentioned of the open plot was ₹ 7,21,41,500/- which is approximately 140% of the ready recknor value of ₹ 5,15,29,528/-. The assessee also obtained information through RTI whether TDR can be loaded on the said plot which was answered in negative. Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 440 (SC)] wherein it is held that the difference in admitted value and value determined by the DVO is about 15% or less is to be ignored. The relevant portion is as under : The legislative history of Chapter XX-C and the stand taken by the CBDT as evident from Instruction No, 1A88 makes it dear that the powers of compulsory purchase conferred under the provisions of Chapter XX-C are being used and are intended to be used only in cases where in an agreement to sell an immovable properly in an urban area to which the provisions of the said chapter apply, there is a significant under valuation of the concerned property, namely, of 15 per cent or more. If the appropriate authority is satisfied that in an agreement to sell immovable property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifference of 25,83,278/- is not to be considered for making addition u/s 50C of the Act. I therefore, direct the AO to delete the addition of ₹ 2,31,95,180/-. 5. In the result, the appeal is allowed. 5. After hearing both the parties and perusing the material on record including the impugned order of Ld. CIT(A), we observe that in this case the assessee has disputed the fair market value of ₹ 7,21,41,500/- as per AIR information and requested before Ld. CIT(A) to refer the valuation of the property to DVO to ascertain the FMV. The ld CIT(A), accordingly, referred the matter to AO on 16.02.2016 and a final valuation report was received by the office of Ld. CIT(A) on 23.06.2016 dated 13.06.2016 according to which the FMV wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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