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2020 (9) TMI 724 - AT - Income TaxExemption u/s 54F with reference to long term capital gains on sale of land - Whether AO was not given an opportunity by the ld. CIT(Appeals) to contest the additional claim / evidence produced by the assessee? - HELD THAT:- This ground was allowed by ld. CIT(Appeals) without giving an opportunity to AO to contest this additional claim / evidence produced by the assessee which is as per the decision in the case of Humayun Suleman Merchant [2016 (9) TMI 70 - BOMBAY HIGH COURT]. That further before us, assessee fairly conceded that this ground is in favour of the Revenue. Hearing the parties and considering the facts and legal parameters on this issue, ground No.3 of the appeal of the Revenue is allowed. Capital gain computation - FMV determination - HELD THAT:- CIT(Appeals) has adjudicated the matter in a balanced way whereby the valuation report sanctity has been upheld but at the same time, it has been brought on record that such valuation report is also not 100% sacrosanct since there is an element of estimate involved and therefore there is a probability of error of 20% in such value. CIT(Appeals) has correctly estimated the Fair Market Value (F.M.V) of the land at ₹ 45,00,000/- as against the value of ₹ 57,02,000/-. After considering the probability of errors at 20% in the valuation report done by the registered valuer for the purpose of computing long term capital gains, we do not find any reason to interfere with the findings of the ld. CIT(Appeals) and therefore the relief provided to the assessee on both these grounds are sustained.
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