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2013 (5) TMI 500 - AT - Income TaxQuantum of capital gains being taxed - whether CIT (A) erred in confirming the reduction of the FMV as on 01.04.1981 as against the certified FMV adopted by the appellant - addition confirmed by invoking the provisions of section 50C - Held that:- As seen from the letter dated 02.05.2009 assessee had objected to the adoption of the District Valuation Officer's report for revising the assessment under section 155 but agreed for adopting the report on sale consideration subject to non levy of interest or penalty. Therefore, the DR's objection on assessee accepting the valuation as on 01.04.1981 is not correct. Assessee has rightly contested the same. As submitted by the learned Counsel, AO lacks jurisdiction for referring the FMV under section 55A wherein the Valuation determined by the DVO is less than the FMV declared by assessee. See Smt. Sarla N. Sakraney v. ITO [2010 (7) TMI 832 - ITAT MUMBAI] & HIABEN JAYANTILAL SHAH Versus INCOME-TAX OFFICER AND ANOTHER [2008 (4) TMI 292 - GUJARAT HIGH COURT] wherein held reference by the Assessing Officer to the DVO under section 55A for valuation of FMV of the property as on 1-4-1981 is not valid for the reasons that FMV declared by the assessee as per Government registered valuer's report was more than the FMV as estimated by the DVO. Since determination of the FMV as on 1-4-1981 was based on the report of the DVO, the same is held to be invalid. Consequently, estimation of the FMV of the property as on 1-4-1981 as made by the assessee is directed to be accepted - In favour of assessee.
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