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2016 (2) TMI 668 - AT - Income TaxApplicability of TDS provision - Disallowance u/s 40(a)(ia) - payment made on account of offshore supply of equipments - Held that:- We hold that the provisions of section 40(a)(ia) of the Act are applicable only in the cases where any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services has been paid or payable to a resident. In the case of assessee company, the payments were made to a non resident German company, the fact which is undisputed on record. Hence, the provisions of section 40(a)(ia) cannot be invoked in this case. As the subject mentioned payments are not chargeable to tax in India in terms of section 195 of the Act. Hence, no disallowance could be made u/s. 40(a)(i)/40(a)(ia) of the Act. - Decided in favour of assessee Adoption of valuation done by the DVO(District Valuation Officer) for the purpose of computing capital gains - Held that:- As it could be seen that even the provisions of section 50C contemplates the adoption of fair market value for the purpose of valuation of the property. We hold that once the determination of fair market value is under consideration all the relevant factors i.e. land area available for construction should be taken into account irrespective of the actual land area conveyed. Accordingly, we are in agreement with the area of land as adopted by the ld.DVO . However, we find that as per the valuation of property is concerned, it is not correct on the part of ld.DVO to add towards 15% frontage on both sides of the road in order to arrive at the total rate at ₹ 990/- per sq.ft as ultimately the ld.DVO adopted the guideline value rate of Senniamman Koil Street at ₹ 861/- per sq.ft. In view of the above, we hold that the land should be valued by adopting the rate at ₹ 861/sq.ft for the area of 4,54,353 sq.ft. Accordingly, assessee gets a relief for the rate of ₹ 129/sq.ft. The Ld. AO is directed to rework the capital gains by adopting ₹ 861/- per sq.ft being the guideline value in the same manner in which the Ld DVO had carried out the valuation. Valuation of building - the assessee has adopted ₹ 1,34,02,000/- as sale consideration attributable to the building in the sale deed - Held that:- As we find from the ld. DVO’s report that the same valuation has been adopted for the building. We hold that no interference needs to be made with regard to the valuation of the building.
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