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2020 (2) TMI 710 - AT - Income TaxCapital gain computation - valuation made as per section 50C - Asset demolished by the purchaser - AO by applying provisions of section 50C adopted the fair market value of the property - HELD THAT:- Though the assessee has the physical possession of the property, but as per Revenue records the ownership of land rests with the Government of Maharashtra. It is also a fact that during the year under consideration the assessee had sold the land along with shed thereon to M/s. Millenium Marbles Pvt. Ltd., who was already in possession of the land - structure that was sold by the assessee was demolished by the purchaser and the structure was stated to have been in existence since the time of its purchase by the assessee. Assessee had got valuation report prepared by the registered valuer who had valued the shed at ₹ 2.10 lakhs as against the value adopted by the DVO at ₹ 69,64,713/-. When the shed that was an old structure and was demolished by the purchaser, we are of the view that the DVO was not justified in valuing the shed at ₹ 69,64,713/-. At the same time, we are of the view that the value adopted by the valuer at ₹ 2.10 lakhs is also on a lower side - we are of the view that if the value adopted in the present case is restricted to ₹ 20 lakhs, would meet the ends of justice and accordingly we direct the Assessing Officer to consider the value of shed at ₹ 20 lakhs and re-work the capital gains. In view of the aforesaid, the amended ground raised by the assessee is allowed.
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