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2015 (8) TMI 1087 - AT - Income TaxValuation of agricultural land and commercial land - book value v/s market value - CIT (Appeals) held that the AO had wrongly applied the circle rate of commercial land without evidence in valuing the value of land at ₹ 20,82,712 and that the circle rate for agriculture land was to be taken, ignoring the fact that the land was being used for commercial purposes and that circle rate of ₹ 900 per sq.yd. which is applicable to commercial buildings was to be taken for valuation of land.Held that:- Commissioner of Income-tax (Appeals) has correctly decided the issue because he has correctly noted that 6 per cent. stamp duty was applicable to agricultural land and commercial land and he has also noted the facts that circle rate was ₹ 12 lakhs per acre which would come to ₹ 244 per sq.yd. and therefore, the value of the land would have been ₹ 5,64,616 which is less than the book value whereas the land and building has been transferred at a consideration of ₹ 25 lakhs in September, 2008. The learned Commissioner of Income-tax (Appeals) has given logic why the valuation adopted by the Assessing Officer for valuing the building at ₹ 30 lakhs is not correct because buildings would generally depreciate over a period of time. He has also rightly observed that if depreciation at 25 per cent. was granted, then the value of the machinery would be ₹ 41,13,281 which is less than the value for which the machinery has been transferred. Further perusal of the assessment order clearly shows that the Assessing Officer has substituted his valuation without referring the matter to the Valuation Officer or bringing any material on record to show that the assessee has received any consideration in excess of the amount shown in the sale deed which is not permissible under the law. - Decided against revenue.
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