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2016 (9) TMI 1532 - AT - Income TaxComputation of capital gains - validity of reference made u/s.55A - valuation of transferred asset as on 1.4.1981 - ascertaining the fair market value of a capital asset - CIT (Appeals) confirming validity of the DVO's Report, which was adopted by the A.O.for making the assessment as the DVO has estimated the value of the asset as on 1.4.1981 on the basis of irrelevant considerations and non-comparable sale instances - HELD THAT:- As decided in Daulal Mohta (HUF) [2008 (9) TMI 890 - BOMBAY HIGH COURT ] there is no confusion with regard to the matters where the assessee adopts the value suggested by a registered valuer. If the FMV adopted by him is in accordance with the valuation report i.e. not less than the valuation report till 01.07.2012, than the property in question cannot be referred for valuation by the AO. The record available with us, does not indicate as to what was the opinion formed by the AO before making reference to the DVO. Therefore, it is apparent that he had, at no point of time, formed an opinion that the FMV determined by the valuer. It is not clear as to whether the reference was made under clause 55A(a) or 55A(b)(ii) of the Act and if it was made under section 55A(b)(ii) then what were the relevant circumstances for making such a reference. Recording of reasons for invoking a particular section of the Act and justification for invoking the specific clause are not available and nor were they brought to our notice. As the value shown by the assessee was not less than the FVM, so, in our opinion, there was no justification for making any reference to the revenue authorities of state government, by the AO in the year under consideration. Amendment to the section 55A of the Act is effective from 01.07. 2012 and as per that now reference can be made if there is variance in the FMV We see no reasons to take any other view of the matter than the view so taken by us in the above case. Accordingly, the impugned additions in the computation of capital gains, on the basis of DVO report on valuation of transferred asset as on 1.4.1981, must stand deleted. - Decided in favour of assessee.
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