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2016 (3) TMI 361 - AT - Income TaxAddition on account of capital gains - estimation of fair market value - application of fair market value on the basis of DLC as per Section 50C - Held that:- It is undisputed fact that these properties were not got registered under the Registration of Stamp Act. It is also a fact that there was a transfer of assets from assessee to brother of the assessee namely Shri Shoukat Ali. The assessee himself admitted that this transfer as on 01/4/2006. The Assessing Officer has given deduction @ 10% on the basis of computing fair market value as on 01/4/2006. However, this matter is technical, therefore, both the properties i.e. plot No. 33, 33A, Jagdish Colony, Amer Road, Jaipur and agricultural land at Amer are required to be referred for the DVO U/s 55A of the Act. However, property at office premises has been referred to the DVO, the Assessing Officer had given deduction on account of fair market value as on 01/4/2006 from the DVO’s report as DVO had calculated the fair market value as on 31/3/2007. Therefore, the capital gain calculated by the Assessing Officer on their property i.e. office premises is justified. However, the objection raised by the AR against the valuation of the DVO is required to be considered, therefore, we feel necessary to allow further deduction @ 10%, in total 20% including Assessing Officer’s deduction from the fair market value estimated by the DVO. It is further noticed by the Bench that when book value as on 01/4/2006 has been taken for computing of the capital gain at ₹ 10,21,694/- whereas in assessment order it has been shown as on 31/3/2006 at ₹ 3,96,260/-, which is opening balance as on 01/4/2006. - Decided in favour of revenue
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