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2019 (6) TMI 284 - AT - Income TaxLTCG on sale of immovable property - reference to DVO for the Valuation of immovable property as on 01.04.1981 - manner and method of valuation as adopted by the DVO - assessee was the co owner of the property having 1/6th share in the property - determining the FMV by rent capitalization method OR fair market rent as done by the DVO - HELD THAT:- We are of the view that Ld DVO was not justified in valuing the building, as because the assessee was owner of the land only and the building was not constructed or owned by assessee. The building was constructed by the Lessee, M/s Park Chambers Private Limited. Further, we note that DVO has failed to appreciate that the property being sold by the assessee was on lease till 2040 and the assessee and the other co owners were only entitled to receive a sum of ₹ 10,000 per month as rent. Thus, the valuation of the property had to be made as per Rent Capitalization method. For this we rely on the judgment of CIT vs. Inderjit Singh [1984 (3) TMI 16 - PUNJAB AND HARYANA HIGH COURT]. Also see SMT. ASHA DEVI AGARWAL [1987 (6) TMI 18 - CALCUTTA HIGH COURT] We note that the assessing officer ought to have determined the value of property based on Rent Capitalization method. Therefore, we direct the Ld. Assessing Officer to recompute the capital gains and decide accordingly. Accordingly, grounds raised by the assessee are allowed for statistical purposes.
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