Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 1680 - AT - Income TaxCapital gain computation - calculation of cost of acquisition as on 1.4.1981 - action of the AO in making reference to the DVO under section 55A(a) - Scope of amended section 55A(a) w.e.f. 1.7.2012 for making reference to the DVO - HELD THAT:- AO can refer the valuation of property to a Valuation Officer in a case where the value claimed by the assessee based on the registered valuation report is less than its fair market value. However in the case before us there is no dispute that the fair market value as declared by assessee is not less than the value determined by the DVO. Thus, the valuation determined by the DVO cannot be accepted as it is against the provision of Section 55A of the Act as applicable prior to the amendment. ITAT Mumbai Bench in the case of Shri Rabinder H Chhabra(HUF) [2014 (6) TMI 283 - ITAT MUMBA] has taken into consideration similar plea of the Revenue that if assessment proceedings is pending then cognizance to amended provision of section 55A effective from 1.7.2012 could be made. ITAT Mumbai Bench on strength of Hon’ble Bombay High Court decision in the case of CIT Vs. Puja Print [2014 (1) TMI 764 - BOMBAY HIGH COURT] has held that such amendment would be applicable to the assessment proceedings subsequent to 1.7.2012. In that case, assessment year involved was 2006-07. As relying on Gauranginiben S. Shodhan [2014 (2) TMI 78 - GUJARAT HIGH COURT] neither with help of amended proviso of section 55A a reference can be made nor under the old proviso, because value declared by the assessee as on 1.4.1981 is far more than fair market value. The ld.AO is therefore directed to re-compute capital by adopting fair market value adopted by the assessee as on 1.4.1981 on the basis of registered valuer’s report. This ground of appeal is allowed.
|