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2019 (3) TMI 315 - AT - Income TaxCapital gain computation - reference to DVO - adoption of full value consideration as per the stamp duty valuation u/s 50C - AO referred to the value to the DVO who determined the fair market value at ₹ 15,33,800/- of each ½ share - assessee has objected to the adoption of full value consideration U/s 50C and submitted that the registered valuer has given the specific reasons for lesser value of the property in question - HELD THAT:- We find that the DVO has determined the fair market value of the property at ₹ 15,33,800/- whereas the registered valuer has determined the fair market value of the property at ₹ 13,22,227/- for each ½ share of the assessee. Thus, it is clear that the determination of fair market value is subjective to the individual decision and therefore, to adopt a fair and proper value average of two fair market value determined one by the DVO and another by the registered valuer can be adopted as fair market value U/s 50C which comes to ₹ 14,28,013/-. Accordingly, the AO directed to adopt fair market value of the ½ each share of the property at 14,28,013/-. Disallowance of cost of renovation and brokerage charges - Each of the joint owner has claimed renovation expenses - HELD THAT:- Once the shop was used after the renovation for business purpose and the nature of expenditure is not any addition to the shop but it is an ordinary and repair work therefore, the current repair charges cannot be allowed as cost of acquisition. As regards the brokerage charges of ₹ 81,000/- we find that the assessee has produced a receipt from the broker however, the charges of ₹ 81,000/- each are very high in comparison to the prevailing rate of brokerage in the real estate transaction. Accordingly, we allow 2% of the sale consideration declared in the sale deed as brokerage charges which comes to ₹ 26,000/- each for both the assesseess. Accordingly, the brokerage charges are allowed partially to the extent of 2% of the sale consideration declared by the assessee. Appeals of the assessees are partly allowed.
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