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2019 (7) TMI 1492 - ITAT AHMEDABADRectification u/s 254 - capital gain computation - need for reference to the DVO - taking cost of acquisition as on 1.4.1981 on the basis of registered valuer’s report - According to the assessee, the Tribunal has deleted the addition made by the AO, but not deleted the addition made by the ld.CIT(A) by way of enhancement - HELD THAT:- There is no apparent error in the order of the Tribunal. The Tribunal has deleted the addition, if any, computed on the basis of DVO’s report because the Tribunal has observed that if the value of the property shown by the assessee as on 1.4.1981 is more than the fair market value, then the AO has no jurisdiction to make reference to the DVO. In the absence of any reference to the DVO, capital gain has to be computed on the basis of registered valuer’s report submitted by the assessee. For this proposition, the Tribunal has relied upon the decision of CIT Vs. Gauranginiben S. Shodhan [2014 (2) TMI 78 - GUJARAT HIGH COURT] The Tribunal has taken into consideration amendment effected in section 55A w.e.f. 1.7.2012. This finding of the Tribunal, though covered the addition made by the AO as well as the ld.CIT(A), but if it does give any confusion while determining the taxable income of the assessee, then, we may reiterate that once reference to the DVO is invalid, then both the reports submitted by him are required to be ignored and the capital gain in the hands of the assessee is to be computed by taking cost of acquisition as on 1.4.1981 on the basis of registered valuer’s report. In other words, the addition made by the AO as well as enhanced by the ld.CIT(A), both are not sustainable. MA of the assessee is allowed.
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