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2022 (9) TMI 192 - ITAT JABALPURRevision u/s 263 - Capital gain computation - non-reference by the AO to the VO u/s. 55A - whether there has been due application of mind by the AO in accepting the returned value (cost)? - HELD THAT:- A non-reference u/s. 55A may be justified where the AO, for reasons stated in his order – which are non-existent, opines on valuation independent of VR, and which coincides or agrees with that by the RV, while, on facts, the latters” report itself is found as without basis. Rather, if only the AO had applied his mind, he would have been able to discern that the valuation report being relied upon by the assessee is, we are afraid to say, a hash report and, in any case, without any basis of valuation, much less a valid basis, even as observed by the Bench during hearing. To us, it is a clear case of valuation being made by applying reverse indexation, i.e., by arriving at the value of land as on 01/04/1981, upon first determining the amount of capital gain that is to be disclosed. This is apparent from his order being sans any finding qua such basis, which also forms the reason for reassessment and, rather, without any deliberation thereon. The basis of valuation of the subject land (as on 01/04/1981) thus remains unstated and un-opined, much less examined, and which prompted us to state earlier of our being at a loss to understand the same. We, accordingly, find no reason to interfere with the impugned order, and uphold the same. The matter of valuation, as evident, being principally and essentially factual, reliance by Shri Bardia during hearing on the decision in Pr. CIT vs. Om Rudrapriya Holiday Resort Pvt. Ltd. [2019 (7) TMI 989 - RAJASTHAN HIGH COURT] would be, for that reason, of no assistance. Even as observed by the Bench during hearing, in the facts of that case, the Hon'ble Court dismissed the Revenue”s appeal in view of the finding by the Tribunal that the AO had taken a plausible view in respect of valuation, a matter of fact. In the instant case, on the contrary, we find a complete non-application of mind by the AO in the matter. Assessee appeal dismissed.
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