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2022 (1) TMI 531 - ITAT CHENNAICapital gain determination - FMV determination - value determined by Assistant Valuation Officer u/s. 50C(2) - HELD THAT:- As observed that guideline value of the property was much higher than the prevailing market value of the property and the same do not represent true market value of the property. The same is an undisputed fact which is also evident from the valuation made by valuation officers for AY 2015-16 as well as for this year wherein on both the occasions, the valuation has come lower than the guideline value. In such a scenario, the valuation, in our considered opinion, would be subjective matter and no fixed formula could be laid down to ascertain the true fair market value of the property. The difference in two valuations is bound to happen since various factors would be required to be factored in while valuing the property - when once valuation has been done by departmental valuation officer, then the same has to be adopted and should be given due weightage. Further, had valuation report for this year been received by AO before completion of assessment, the same would have been binding on Ld. AO - CIT(A), in our opinion, was not correct to apply the valuation of AY 2015-16 to this year since specific separate reference was made for this year for valuation of property sold by the assessee during the year and the valuation would depend upon many variables viz. location of property, type of property, size etc. Therefore, on the given facts and circumstances of the case, we direct Ld. AO to adopt the fair market value as valued by the valuation officer. - Decided in favour of assessee.
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