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2019 (2) TMI 1810 - AT - Income TaxLong term capital gain on sale of land by the assessee - FMV - dispute between the assessee and the AO is the rate at 290 per sq.mtr as FMV as on 01.04.1981 whereas DVO has estimated the same @ 162 per sq.mtr. - HELD THAT:- DVO’s Report that sale instances considered by the DVO are not of the same survey no. Further, the DVO has himself stated in his report that impugned land was situated at more appropriate location as compared to sale instances considered by him. CIT(A) has also pointed out that the value determined by the Registrar Valuer was based on unscientific, ad-hoc method and DVO has determined the rate of reduction 162 per sq.mtr cost incurred on stamp duty, additional stamp duty, registration charges, legal charges. Therefore, considering the entirety of the facts and taking a holistic view, we are inclined to accept the ld.Counsel’s argument that the average value as determined by Registrar Valuer of the assessee DVO and has considered by the CIT(A) would be more reasonable and appropriate for determination of the FMV of land as on 01.04.1981. Accordingly, the average rate for FMV is worked out to ₹ 210 i.e. (162 + 290 + 178 = 630/3= 210). The AO, therefore, accordingly directed to reworked out the index cost of acquisition by taking FMV at ₹ 210 per sq.mtr and re-compute the taxable long term gain, accordingly this ground of the assessee is therefore partly allowed. Addition on account of difference in Jantri Value by applying the provisions of section 50C - HELD THAT:- In the instant case, the difference between the valuation adopted by the Stamp Valuation Authority and declared by the assessee is less than 10%. Therefore, we hereby direct the AO to adopt the value as declared by the assessee. This ground of the assessee is allowed. We direct the AO to adopt the valuation of sale consideration as declared by the assessee. The additions made by the Assessing Officer u/s.50C is deleted and as grounds raised by the assessee are allowed.
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