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2016 (6) TMI 451 - AT - Income TaxAdoption of FMV - claim of deduction U/s 50C - allowance of indexation - inheritance of property - AO taken value on the basis of DVO’s valuation - Held that:- It is undisputed fact that the assessee inherited the property from his mother in law and has 50% share in it, which has been sold during the year under consideration at ₹ 1.20 crores. The assessee’s share was ₹ 60.00 lacs, which has been disclosed. The assessee had computed the capital gain by considering the FMV as on 01/4/1981 at ₹ 1,92,282/-. However, the ld. Assessing Officer had taken value at ₹ 1,28,700/- on the basis of DVO’s valuation. It is settled law that the Assessing Officer cannot refer this issue U/s 55A to the DVO as the assessee has shown FMV as on 01/4/1981 at ₹ 1,92,282, which is more than FMV decided by the DVO at ₹ 1,28,700/-. Sub-section (a) of Section 55A of the Act had been amended by the Finance Act, 2012 w.e.f. 01/7/2012 and variance word inserted in this sub-section. Therefore, the ld Assessing Officer is directed to allow the indexation for the F.Y. 1981-82 on ₹ 1,92,282/-. Further the assessee had claimed improvement cost in F.Y. 2000-01 at ₹ 3.00 lacs and in F.Y. 2004-05 at ₹ 1,30,000/- in which indexation has been claimed by the assessee but the assessee had not produced any evidence before the lower authority to demonstrate that his mother in law had incurred any cost on improvement. Even registered valuer of the assessee and DVO of the department has not referred any improvement in the valuation report, therefore, we dismiss the assessee’s appeal on indexation claimed in F.Y. 2000-01 and 2004-05. Deduction U/s 54F of the Act on two flats - Held that:- This issue has been considered by the various courts and in number of cases that this deduction is allowable on even two flats, which can be a complete unit or even can be on different floors of the apartment. Accordingly we allow the deduction U/s 54F of the Act on two flats. Adoption of sale consideration - Held that:- As for deduction U/s 54, the sale consideration is to be taken on the basis of actual sale consideration received by the assessee not determined by the stamp authority for the registration purposes or determined by the DVO referred U/s 50C of the Act.
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