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2022 (9) TMI 657 - AT - Income TaxLong term capital gain - correct valuation of the land - Reference to DVO - Difference in cost adopted by the assessee and the cost of asset suggested by DVO - what should be the fair market value of the asset as on 01.04.1981 as the assessee has acquired the said asset on 04.08.1965? - HELD THAT:- DVO has mentioned in its report that while taking the sale instances the factors affecting the land rates such as size, shape, situation, location, utility, specification, long time future prospect and PUC were considered and average value of three instances @ Rs. 21/- per square meter was suggest. We find that no details of various factors considered by DVO is mentioned in his report. And all the factors are mentioned just to fulfil the requirement of contents of report. Also perused the report of registered valuer who suggested the value of land @ Rs. 98,000/- per acre and arrived at the value of asset at Rs. 7,35,000/-. No factors affecting the land rates such as size, shape, situation or location is mentioned in his report. Now, before us, we find two expert reports about the valuation of the same land, however, on their perusal we find that there is very minor difference of rates in both reports. The DVO has referred three sale instances which are with regards to small pieces of land, but the size of land under dispute is very large comparative to the comparable. If we take the average of comparable No. 1 & 3, and excluded comparable No. 2 for the reasons of its size, which is otherwise on very low side i.e Rs. 11/- per square meter, the average of remaining two comparable comes to Rs. 27.49/-. The assessee has already adopted the rate at Rs. 25.69/- per square meter, which is reasonable and acceptable to us. Considering the facts that we have accepted the rate @ Rs. 25.69 per square meter, therefore, all the submissions of ld AR on legal or factual issues have become academic. In the result, the grounds of appeal raised by the assessee are allowed.
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