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2016 (7) TMI 838 - AT - Income TaxDetermination of FMV/cost of acquisition and sale value u/s 50-C and 55A - CIT(A) adopting mean value of the properties based on valuation reports submitted by the DVO and assessee valuer for the purpose of cost of acquisition of land as on 01.04.1981 - assessee is the co-owner of the land encroached and occupied by the slum dwellers and the said land is notified slum by State of Maharashtra - Held that:- CIT(A) was required to find out the fair market value of the property as on 01-04-1981 as per provisions of Section 55 and 55A of the Act and in-fact while computing the fair market value , an element of estimation is always involved as the value cannot be determined with the exact precision. The sale instances relied upon by DVO/VO as well as of the assessee’s valuer has some inherent weaknesses and under the factual circumstances of the case , keeping in view of the availability of the data with the DVO/VO and also with the assesee’s government approved registered valuer , the best recourse was to find out mean so that a fair market value of the property is arrived at which in-fact the learned CIT(A) did to determine fair market value of the property as on 01-04- 1981 under the provisions of Section 55 and 55A of the Act. We donot find any infirmity in the order of the learned CIT(A) as the fair market value of the property is dependent on several factors which influence valuation and there is no scientific or straight jacket method to value the property at a particular point of time and somewhere estimation element will definitely creep in while determining the fair market value of the property as on date keeping in view the mandate of Section 55 and 55A of the Act We are inclined to accept the valuation as adopted by the learned CIT(A) by following mean of the valuation adopted by DVO/VO and the assessee’s government approved valuer who is a and we donot find any infirmity in the order of the learned CIT(A) which we affirm/sustain, keeping in view factual matrix of the case. - Decided against revenue
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