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2020 (12) TMI 171 - AT - Income TaxCapital gain computation - justification of reference made to the DVO in contravention of the legal position under section 55A - Whether DVO not qualified to carry out valuation of agricultural land as per the condition prescribed in Rule 8(A)(3) of Wealth Tax Act? - HELD THAT:- In the present case the assessee has shown the value of asset at a higher rate than the fair market value and the amendment to the section 55A( a) i.e. substitution of the words “is at variance with the fair market value” were inserted with effect from 1st July 2012 and the same is not applicable retrospectively, further the assessing officer has to form an opinion that fair market value as on1st April 1981 as claimed by assessee is not fair value. As decided in Tribunal in Jignesh Kumar S Modi (HUF) [2019 (6) TMI 1571 - ITAT SURAT] while relying on the decision of jurisdictional High Court in CIT Versus Gauranginiben S Shodhan [2014 (2) TMI 78 - GUJARAT HIGH COURT] the value of the land shown by the assessee as on 1.4.1981 based on the registered valuer report is considered, it would reveal that the same was in fact even higher than the value subsequently determined by the valuation officer and therefore, the AO was not empowered to refer the matter to the valuation officer even as per erstwhile provisions of section 55A(a) prior to amendment by the Finance Act, 2012. Without going into the merits of the basis of valuation so adopted by the registered valuer and subsequently by the department’s valuation officer, in absence of a valid reference to the valuation officer, the addition so made under the head “long term capital gains” so far as it relates to cost of acquisition as substituted by fair market value as on 1.4.1981 is directed to be deleted. In the result, the appeal of the assessee is allowed Considering the decision of co-ordinate bench of Tribunal on almost similar set of fact while considering the similar contention of assessee in the said held that when the transaction of sale of land was taken during the financial year 2011-12 relevant to the assessment year 2012 -13, the amended provision of section 55A(a) would not be applicable and one shall be guided by the wrest while provision of un-amended section 55 A(a) of the Act. We allow the ground No. 1 raised by the assessee.
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