9911796707
|
Home
Issues: Determination of market value as on 1-4-1981 for computing capital gain and disallowance of expenses incurred on the capital asset sold.
Market Value Determination Issue Analysis: The appeal before the Appellate Tribunal ITAT Mumbai involved a dispute regarding the determination of the market value as on 1-4-1981 for the purpose of computing capital gains on the sale of land. The assessee claimed a market value of Rs. 155 per sq. metre based on a valuer's report, while the Assessing Officer determined it to be Rs. 25 per sq. metre. The Assessing Officer questioned the valuation report's reliability as it relied on developed land in a specific area due to the lack of recent sale instances. The Tribunal noted that the absence of the Registered Valuer during assessment led to the rejection of the report by the lower authorities. However, the Tribunal emphasized that a Registered Valuer's report should be considered as an expert opinion unless proven otherwise. As there was no concrete evidence contradicting the valuation report, the Tribunal remanded the issue back to the Assessing Officer for a thorough re-evaluation. The Tribunal directed the Assessing Officer to gather additional evidence, such as surrounding land sale deeds, to determine the fair market value accurately. Expenses Disallowance Issue Analysis: The second issue in the appeal pertained to the disallowance of expenses amounting to Rs. 14,25,840 incurred on the capital asset sold by the assessee when computing capital gains. The Assessing Officer disallowed these expenses as the assessee failed to provide evidence supporting the payments made and did not clarify if the expenses were related to the development of the sold land. The Tribunal found that the details submitted by the assessee were not adequately examined by the lower authorities. Consequently, the Tribunal set aside this issue for the Assessing Officer to re-examine and make a well-founded decision. The Tribunal also highlighted that the charging of interest under section 234 would be consequential in this matter. Ultimately, the Tribunal allowed the appeal of the assessee for statistical purposes, indicating that the decision was made solely to address procedural or technical issues rather than the substantive merits of the case.
|
