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2023 (11) TMI 995 - AT - Income TaxLTCG on 'Sale of Co-ownership Land' - valuation report given by the DVO rejected - AO adopted the fair market value of the property sold for the purpose of computing capital gains - different valuation for the purpose of computing capital gains in each co-owners case - assessee submitted that in one of co-owners brother’s case reference was made to the DVO to ascertain the fair market value of the property sold and the DVO valued the property which value was adopted by AO accepting the valuation done by the DVO and assessment was completed u/s 143(3) r.w.s. 147 - CIT (Appeals) rejected the claim of the assessee on the ground that the valuation report given by the DVO is not correct as he has reduced 50% value of the property for the reason that the size of the property was large in extent and there were no buyers for such plot. HELD THAT:- In the case of the assessee, Assessing Officer adopted the fair market value of the property sold at Rs. 6,46,80,000/- for the purpose of computing capital gains ignoring the valuation report of the DVO and the assessment made in assessee’s brother’s case wherein the valuation of the DVO was adopted for computing long term capital gains. The ld. CIT (Appeals) also did not accept the contention of the assessee for adopting the DVO valuation in assessee’s case also for the purpose of computing the long term capital gain which in our view, is not justified. Having adopted the DVO’s valuation in one of the co-owners case who is the brother of the assessee for the assessment year i.e. 2011-12 for computing the long term capital gain, we see no justifiable reason to adopt a different valuation in assessee’s case for computing long term capital gain for his 1/6th share for the very same assessment year i.e. 2011-12. Even the case of the Revenue that the valuation of the DVO was not accepted by the Revenue in the case of Late Krishan Kant Chahal and the CIT had initiated proceedings under section 263 of the Act. The Revenue could not place before us any proceeding pending under section 263 in the case of co-owner and brother of the assessee Late Shri Krishan Kant Chahal. The valuation adopted by the Revenue as per the DVO’s report became final in the co-owners case and, therefore, the same valuation should be adopted in assessee’s case also for the purpose of computing long term capital gain. Thus, we direct the Assessing Officer to adopt the valuation report of the DVO dated 16.12.2006 which formed the basis for computing long term capital gain in the case of the other co-owner, Late Shri Krishan Kant Chahal, who is also the brother of the assessee for the purpose of computing 1/6th share of capital gains, in the case of the assessee also. Assessee appeal allowed.
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