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2018 (3) TMI 428 - AT - Income TaxCapital gain computation - adopting value of Stamp Valuation Authority - Held that:- From the above, it is clear that assessee has made objections for adopting value of Stamp Valuation Authority, which exceeds FMV of the property on the date of transfer, AO may refer the valuation of the capital assets to a valuation officer. In the given case, AO has adopted the stamp valuation without referring to the valuation officer, even though, AO objected for adopting SRO value. We are in agreement with the findings of the coordinate benches and accordingly, we remit this issue back to the file of the AO with a direction to refer this matter to the DVO and redo the income from capital gains de-novo. Coming to the adoption of SRO value for cost of acquisition as on 1981 instead of FMV as on that date, we notice that SRO value is a guideline value, which is to be applied for calculation of stamp duty only and the same is borne by the purchaser. As far as seller is concerned, what is relevant is the fair market value that could have been received by him. In few cases, they raise objection before the stamp valuation authority for adopting higher valuation or go to courts. Therefore, it is proper and wise to adopt the actual FMV existed as on 1981. Therefore, we are inclined to remit this issue also to the file of AO to determine the FMV as on 1981. Therefore, ground raised by the assessee on this issue is allowed. With regard to adhoc disallowance of expenditure of ₹ 1 lakh, we notice that AO has disallowed ₹ 1 lakh against the claim of expenditure to the extent of ₹ 6,47,621/-, which may be reduced to 10% of the expenditure claimed since all the expenditures are relating to running of the assessee’s business. Accordingly, this ground is partly allowed.
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