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2019 (6) TMI 469 - AT - Income TaxDisallowance of Long Term Capital Loss - sale of land at Kalyan - correctness of FMV as on 1.4.1981 adopted for computing the Long Term Capital Loss - HELD THAT:- Valuation has not been obtained from a registered valuer. In this view of the matter, entire premise of learned CIT(A) that valuation has been done by the registered valuer and hence its veracity cannot be doubted, is found to be untenable at the threshold. However, assessee has subsequently furnished a letter from the said valuer claiming be is a registered valuer. Admittedly this is an additional evidence. Furthermore, valuer has adopted a bizarre method. The valuer has taken the stamp value rate of year 2012 and worked its backward @ 10% growth rate to obtain fair market value at 1.9.1981. In our considered opinion this is not at all an acceptable method. This submission of valuation report by unregistered valuer later on claiming to be a registered valuer without any sale instances of the period has to be looked into by taking into account the surrounding circumstances. The assessee has duly booked huge profit on the transaction in its books of account. The transaction has been done to group concern to whom land was already leased out. CIT(A)’s acceptance of the said valuer’s report as sacrosanct despite the papable lack of veracity of the valuer or method of valuation is not at all sustainable. The lack of cogency of the valuation report is further highlighted by the huge difference found by the AO when compared to data noted from website of Megabricks. The surrounding circumstances couple with these information clearly indicate towards of lack of veracity in said valuer’s determination - the issue needs to be remitted to the file of the Assessing Officer. The Assessing Officer is directed to consider the issue afresh after obtaining valuation report from the departmental valuer. Needles to add assessee should be provided adequate opportunity of being heard. Bogus short term capital loss and long term capital loss on sale of shares - Assessee has got higher price than the NAV of such share - HELD THAT:- We find that the Assessing Officer has no material whatsoever with him to conclude that transactions of sale are not genuine or that the price based on the sale is understated rather he has not at all doubted the fact that net asset of the company was negative and NAV was minus ₹ 3.18/-. The findings of CIT(A) and case laws relied upon by him are flawless and duly support the case of the assessee. Hence, we do not find any infirmity in the order of learned CIT(A) and accordingly we uphold the same - Decided in favour of assessee.
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