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2019 (4) TMI 705 - AT - Income TaxReference to DVO - Determination of cost of acquisition - reference when value adopted by the assessee is on the higher than fair market value - Registered value vs fair market vale - computation of LTCG - whether reference u/s 55A could be made for determining the fair market value of the property as on 1.4.1981? - effect of amendment in 55A - HELD THAT:- we find that the ITAT in the case of Shri Devendra Rasiklal Shah (supra) has considered judgment of Hon’ble jurisdictional high Court in the case of Gauranginiben S. Shodhan [2008 (4) TMI 292 - GUJARAT HIGH COURT] and has held that if the value declared by an assessee as on 1.4.1981 on the strength of registered valuer’s report is more than the fair market value sought to be determined by the AO, then reference under section 55A for determining fair market value by the DVO cannot be sent. Both the assessee have declared cost of acquisition for the purpose of indexation as on 1.4.1981 more than the one determined by the DVO. Thus, the AO was not possessing any material which can suggest that the value declared by the assessee was less than the fair market value as on 1.4.1981. Therefore, it requires to be re-determined. In the above situation, he cannot make a reference under section 55A to the DVO, and if the reference cannot be made, then cognizance of that cannot be taken for determining long term capital gain assessable in the hands of both the appellants. In view of the above discussion, we allow this fold of grievance and direct the AO to accept long term capital gain disclosed by both the appellants on the basis of registered valuer’s report. - Decided in favour of assessee.
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