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2016 (9) TMI 400 - AT - Income TaxComputation of capital gain by the AO in respect of two properties sold - valuation by DVO - Held that:- Upon careful consideration note that the said land was sold by the assessee on 10-11-2006 at a consideration of ₹ 51 lakhs to Shri Bandal. The said Shri Bandal sold the said property to the third party M/s Voss Exotech Automatic Pvt. Ltd. for a consideration of R.1,42,65,000/- on 15-12-2006. Thus in a one month period there was an increase in the price of the same land by approximately ₹ 1 crore. In these circumstances, the assessee’s plea that the value of the land sold on 10-11-2006 should be ₹ 47,62,800/- is not at all acceptable. By any stretch of imagination the same property cannot have enhancement of ₹ 1 crore in a one month period. This is beyond preponderance of probability. Further more find that the learned CIT(Appeals) has passed a reasonable order considering all the facts of the case. The DVO also has valued the property at ₹ 1,17,60,000/-. However, since the value adopted by the Stamp Valuation Authority is ₹ 92,50,000/-, the same value has been adopted by the authorities below. Thus this is very fair and the assessee should not be aggrieved on this account. Hence affirm the order of learned CIT(Appeals) and decide the issue in favour of the Revenue qua the first property. Another property has been sold by the assessee for ₹ 2 lakhs. The AO noted that the value adopted by the Stamp Valuation Authority was ₹ 5,47,518/- . The AO in this case has referred the valuation to the DVO. However, there is no whisper in the order of learned CIT(Appeals) regarding the receipt of DVO’s report. Till date the Revenue is not in a position to show the DVO’s report. Thus find that this is a very strange situation. Absence of DVO’s report despite of so much elapse of time is not at all warranted and remit this issue to the file of the AO. The AO shall consider the issue afresh after taking into account and bringing on record the valuation done by the DVO Decided partly in favour of assessee for statistical purposes.
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