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2019 (4) TMI 61 - HC - Income TaxReference u/s 55A to the Valuation Officer - valuation of the capital asset - value of the asset as claimed by the assessee, which is based on the estimate made by a registered valuer, is less than its fair market value - Tribunal found that there existed no circumstances to make a reference under Section 55A of the Act as demanded by the appellant - HELD THAT:- In the instant case, the AO had found that the valuation of the capital asset as on the date 01.04.1981 made by the assessee on the basis of the estimate of a registered valuer was less than its fair market value. The Assessing Officer did not make any reference to the Valuation Officer only on the premise or assumption that in the case filed by the son of the assessee, this Court had approved the cost of acquisition of the land owned and sold by him as ₹ 1,000/- per cent. AO had taken it for granted that since the assessee and his son had purchased the property in the same survey number on the same day at the same rate of price, the cost of acquisition would not be different in respect of those two lands and therefore, it was not necessary for making a reference under Section 55A of the Act. Even before the Assessing Officer, the assessee had produced the report of a registered valuer and the assessee had based his claim on the estimate made by the registered valuer. The Assessing Officer has shown no reason whatsoever for rejecting the valuation made by the registered valuer except the wrong notion entertained by him that the cost of acquisition of land owned and sold by the son of the assessee was approved by this Court as ₹ 1,000/- per cent. Thus in a case where the AO is of the opinion that the value of the capital asset claimed by the assessee, on the basis of the estimate made by a registered valuer, is less than its fair market value, it is not mandatory for the Assessing Officer to make a reference under Section 55A of the Act to the Valuation Officer. The substantial question of law is answered accordingly. However, on the facts of the case, we find that the Assessing Officer should have made a reference under Section 55A of the Act. - decided in favour of assessee.
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