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2010 (12) TMI 232 - AT - Income TaxCapital Gain - Regarding adoption of valuation of land as on 1.4.1981 for computation of capital gain - The DVO has submitted the valuation report dated 17.2.2006 wherein the land in question has been valued at 45 per sq. ft - Accordingly, the cost of acquisition of land as on 1.4.1981 was adopted by A.O. at ₹ 25,50,261 as against ₹ 63,29,520 estimated by the registered valuer of the assessee - It has been submitted that the provisions of section 55A(b) cannot be applied when the assessee has submitted the registered valuer's report - The provisions of section 55A manifest that for the purpose of computation of income from capital gain the AO has jurisdiction to take the expert opinion for ascertaining the FMV of the capital asset - Therefore, from the language of the section 55A and particularly sub-clause (ii) of clause (b) no such condition expressly or impliedly provided that no reference can be made if the claim of the assessee is supported by the valuation report of registered valuer - Once, an opinion has been expressed by the AO while referring the valuation to the DVO then the conditions provided u/s 55A(b)(ii) are satisfied - It would thus be seen that in India, as in England, where the test of admissibility of evidence lies in relevancy, unless there is an express or necessarily implied prohibition in the Constitution or other law evidence obtained as a result of illegal search or seizure is not liable to be shut out - The appeals must also fail and are dismissed with costs Regarding deduction u/s 54 - Certain decisions of the Tribunal relied on by the learned counsel for the assessee wherein exemption was allowed in respect of investments in two adjacent or continuous units converted into one residential house by having common passage/stair case, common kitchen, etc intended to be used as single house for the residential of the family - It is held that exemption under sections 54 and 54F of the Act would be allowable in respect of one residential house only - In the case in hand, the assessee-HUF purchased three flats - Special Bench was constituted in the case of Sushila M Jhaveri reported in (2007 -TMI - 59614 - ITAT BOMBAY) – Held that allow the deduction only in respect of one flat as per the choice of the assessee Regarding the levy of interest u/s 234C - the assessee has not raised the issue of interest u/s 234C before the CIT(A) and accordingly, the CIT(A) has not decided the issue of charging of interest u/s 234C - In absence of any application or petition by the assessee for raising the issue, the same cannot be admitted as afresh at this stage - In the result, appeal of the revenue is partly allowed and cross-objection of the assessee is partly allowed for statistical purpose
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