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2017 (3) TMI 1182 - HC - Income TaxRevision u/s 263 - determination of market value by D.V.O - adoption of value - Held that:- It is true that A.O. made reference to D.V.O. for valuation of land in dispute under Section 50C(2) of the Act, 1961, but D.V.O. examined the matter erroneously by taking nature of land as agricultural, ignoring that in the sale deed itself it was also mentioned that land was within limits of Nagar Nigam and that being so, its value ought to have been examined as an urban land and not agricultural land. A.O. treated estimation of D.V.O. as final and proceeded accordingly. In our view, order of assessment passed by A.O. was clearly erroneous and also prejudicial to the interest of Revenue. Tribunal has dealt in detail, various inquires made by A.O. with regard to valuation of property but the basic fact regarding nature of land which was relevant for determination of fair market value was erroneous and has not been examined at all. The Assessee himself knew that the land was within the municipal limits of Nagar Nigam, therefore, fair market value mentioned in the sale deed was not taken by it, which was applicable to an agricultural land but Assessee admittedly applied the circle rate applicable to urban land. The land which was within the municipal limits, could not have been treated to be ''agricultural land' on the basis of revenue record prepared under U.P. Z.A. & L.R. Act. A.O. also did not examine when Assessee admitted circle rate, applicable to ''urban land' for the purpose of fair market value, for stamp duty, then, why for determination of market value by D.V.O., land should be taken as an agricultural land. C.I.T., therefore, rightly exercised power under Section 263 of Act, 1961, and Tribunal, in our view, has erred in law in taking otherwise cognizance and setting aside order of C.I.T. - Decided against assessee.
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