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2017 (9) TMI 176 - AT - Income TaxComputation of Capital Gains- Jurisdiction of AO in completing assessment both under sections 50C and 55A - reference to DVO - adoption of value - valuation procedure i.e. Department Valuation or Fair market Value - Held that:- Bombay High Court in the case of CIT Vs. Daulal Mohta (HUF) [2008 (9) TMI 890 - BOMBAY HIGH COURT] has held that reference to DVO can only be made in a case where value of asset shown by the assessee is less than its fair market value of the land. Following the same parity of reasoning, we hold that no reference can be made under section 55A of the Act in order to value the cost of acquisition of property as on 01.04.1981 at a figure lesser than the value declared by the assessee. Accordingly, the order of CIT(A) is reversed in this regard. The Valuation Officer has adopted the value of property at about ₹ 93 lakhs as against the value declared by assessee at ₹ 87 lakhs and the value so worked out by the Valuation Officer is less than 10% and hence, value shown by the assessee merits to be applied. Assessing Officer was not justified in substituting the value determined by the DVO for the sale consideration disclosed by the assessee. Accordingly, the Assessing Officer is directed to take the value declared by the assessee at ₹ 87 lakhs in order to work out the income from capital gains. - Decided in favour of assessee.
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