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2020 (9) TMI 815 - AT - Income TaxEnhancement of Capital Gain - Initially the value was taken as determined by the Sub-Registrar - Later, on objection raised by asessee, matter was referred to DVO - Application of section 50C, since the land is in Dark Zone - HELD THAT:- As during the course of assessment proceedings u/s 143(3)/148 of the Act, the A.O. has enhanced capital gain by taking value as determined by the Sub-Registrar. However, the assessee has filed objection then the matter was referred to the DVO. DVO done valuation without considering the facts that land is in Ecological Area exists in Dark Zone as declared by Geological Survey of India and Central Ground Water Authority, no construction activities are allowed on that land as well as comparable case of adjacent land was also not considered. DVO has taken excessive rate without considering the average rate i.e. ₹ 9,28,300.00 and taken ₹ 22,20,625.00 per Bigha which is more than double of prevailing Market rate. Judicious view should be taken for valuation of land and true valuation is ₹ 9,28,300.00 per bigha as per surrounding sale value to be taken. In addition to cost of boundary wall as taken by the DVO also considered for cost of acquisition. Accordingly, we do not find any merit in the addition so made.
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