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2016 (5) TMI 1297 - AT - Income TaxAdoption of sale value of the property as per stamp valuation made by the Stamp Valuation Authority - reverence to DVO - whether the DVO and Stamp Valuation Authority were justified in treating the property in question as commercial? - Held that:- There is no reference in the sale deed that the property was commercial. On the contrary, it is stated that the property is residential in nature. From the evidence in the form of letter dated 16-10-2007 of the authorized officer of JDA, it is stated to be a residential property. It is noticed that the method applied for adopting valuation by the DVO is DLC rate for corresponding land. The reason for adoption of such method is stated that this being the time barring case, hence no sale instances were available. It is further observed by the DVO that the land is situated on Ancillary Road to Main Amer Road, just before Jorawar Singh Road Gate. From the observations of the valuation report, it can be inferred that the DVO has not given his finding with regard to the nature of land as on 15-01-2010 whether the land was being used for commercial purposes. We notice that there are clear contradictions in the evidences given by the JDA and the reasonings given by the DVO. It is incumbent upon the DVO to give clear finding about the nature of property as on 15-01-2010 i.e. when the land was transferred by the assessee. We feel that JDA is a competent authority to comment upon the nature of property. After considering the materials placed on record in the form of DVO’s report and letters of the JDA, we are of the considered view that the report submitted by the DVO is faulty and does not inspire confidence. Hence, we deem it proper that the issue of nature of the land in question as on 15-01-2010 when sale deed was executed by the assessee requires verification. Thus the orders of the authorities below are set aside on this issue and the issue in question is restored back to the file of the AO to decide it afresh. - Decided in favour of assessee for statistical purposes.
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