Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 944 - ITAT LUCKNOWLong term capital gain - FMV determination - property occupied by tenants - AO referred the matter to the valuation cell for determining the fair market value as on the date of sale - as contented fair market value of the property was not more that the value reflected in the sale deed - Held that:- The property deed itself it is mentioned that it is occupied with tenants and more so it is proved since court cases are going on against them as per Rent Control Act, which is also evident in the order of the ld. CIT(A). CIT(A) has stated that valuation by the DVO is correct whereas that adopted by the authorized valuer is arbitrarily done. No evidence or any material on record, which highlight these facts. The order of the CIT(A) is not at all a speaking order and written submissions put forth by the assessee before him pointing out main three objections are not at all dealt with by the ld. CIT(A) in his order. As examined DVO’s report we find that he has also not dealt with the issue as to why benefit should not be given to the assessee when KDA itself takes away some portion of the property for road widening. The DVO has also not pointed out that property already being occupied by tenants and court cases are going on, what could be the impact of valuation of such property. Whether it could be more than what is stated in the sale deed. These things have not been clearly dealt with by the DVO. DVO has simply applied circle rate available and made report. The Income Tax legislation being a welfare legislation has always tried to protect a bona-fide assessee and here is a case where sale deed value is declared and independent valuation done by the authorized valuer, but we find that the subordinate authorities have not categorically dealt with the submissions of the assessee nor has brought out any material on record to support as to why DVO’s report should be taken into consideration. Set aside the order of the ld. CIT(A) and direct deletion of addition - Decided in favour of assessee.
|