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2023 (6) TMI 724 - AT - Income TaxCapital gain computation - FMV determination - Scope and validity of Expert Opinion - AO determined the FMV using Compounded Annual Growth Rate Method (CAGR) which AO considered more rational and reasonable method for calculating fair market value - HELD THAT:- Act specifically provides that if the AO is not satisfied with the fair market value of the capital asset then reference can be made to DVO for the valuation. That is the only way with the Ld. AO to shift the onus on the assessee to justify any other valuation adopted by the assessee. Tribunal Mumbai Bench in Macrotech Developers Ltd. [2023 (5) TMI 153 - ITAT MUMBAI] has deleted addition made u/s 43CA on the ground that revenue failed to follow the mandate of Section 43 CA(2) r.w.s. 50C(2) by not referring valuation of property sold to Valuation Officer. The opinion of an expert cannot be brushed aside in a whimsical manner. Specially when law mandates the evidence of an expert to be admissible for proving specific question of fact as in the present case, the fair market value of the property. Thus, at one hand having failed to take opportunity and mandate under law to call for a DVO report and on the other hand having discredited the valuation report of the assessee without substantial reasons makes the order of Tax Authorites Below erroneous and not sustainable under law. The factual submissions made on behalf of the assessee with regard to the fact that actual saleable land was two third itself makes the fair market value of property arrived at Rs. 38 by AO to be not sustainable. The substantial expenses also indicate that the market value of the land had to be taken on a more reasonable basis. Acceptance of market in the subsequent years also benefits the assessee as the same shows that in the present AY the Tax Authorities, while passing the impugned orders, did not appreciate the facts in correct perspective. Appeal of assessee is allowed.
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