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2018 (7) TMI 830 - AT - Income TaxAddition on account of Long Term Capital Gain on sale of property - non refer the valuation to DVO for determination of the fair market value - AO as well as the DVO rejected the plea of the assessee to value the fair market value of the property on the date of sale - request of the assessee to ascertain the fair market value of the property on the date of sale denied - Held that:- We do not countenance such action of the AO/DVO. There is no estoppel against law. Since the AO has referred to the DVO, the valuation report on the basis of which the assessee had valued the property as on 01.04.1981 at ₹ 1,64,65,457/- then, in all fairness assessee’s request for determination by DVO the fair market value of the property on the date of sale should have been considered in the light of the fact that the property in question was in dilapidated condition encroached by trespassers and defaulting tenants and shopkeepers resulted in discounted sale of the property on as is where is basis. Therefore, in the interest of natural justice and fair play the AO being a quasi juridical authority should have referred not only the value of the property as on 01.04.1981 but also the fair market value as on the date of sale. As relying on the decision of the Hon’ble High Court in Sumit Kr. Agarwal [2014 (6) TMI 13 - CALCUTTA HIGH COURT] we set aside the order of the DVO/AO and remand the matter back to the AO with a direction to refer the valuation to DVO for determination of the fair market value as on the date of sale of the property as well as on 01.04.1981’after giving opportunity to the assessee and thereafter to compute LTCG in accordance to law - Appeal of assessee is allowed for statistical purposes.
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