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2021 (1) TMI 480 - AT - Income TaxCapital gain computation - Determination of Fair Market Value by the Ld. CIT(A) with regard to sale of land - AO invoked the provisions of section 50C and directed the assessee as to explain as to why the value of Sub Registrar Office should not be considered for computing the capital gains, against the sale consideration admitted by the assessee - CIT(A) held that the AO is not permitted to adopt the value determined by the DVO for the A.Y.2009-10 for the earlier year i.e 2008-09 and determined the fair market value by allowing reduction of 15% for the annual increase in rates and accordingly partly allowed the appeal of the assessee. HELD THAT:- In the circumstances AO ought to have referred the valuation to the Departmental Valuation Officer as provided in sub section 2 of section 50C or made the enquiries with the APIIC. In the instant case, the AO has not done the above exercise, instead blindly adopted the value decided by the DVO for the A.Y.2009-10 for the impugned assessment year. The short question whether the value decided by the DVO for the A.Y.2009-10 can be applied for the A.Y.2008-09 or not? is to be answered as ‘No’ since, the values keep changing and for income tax, each assessment year is independent. AO ought to have referred the valuation of property to the DVO for the A.Y.2008-09 also separately and taken the value so decided by the DVO for the purpose of capital gains. In the instant case, the Ld.CIT(A) has determined the fair market value of ₹ 6800/- after giving some reduction for annual increase and the department did not bring any material to show that the market value of the land in the impugned A.Y. is more than the value determined by the Ld.CIT(A). Therefore, we find no reason to interfere with the order of the Ld.CIT(A) and the same is upheld. - Decided against revenue.
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