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2022 (11) TMI 731 - ITAT SURATExemption u/s 54F & 54EC - capital gain computation - reliance on reports of the Government approved valuer - addition by estimating the value of land @ Rs.750/- per square meter as on 01-04-1981 instead of adopted by the assessee @ Rs. 1,500/- per square meter on the basis of the Valuation Report - HELD THAT:- DVO has mentioned the rates of comparable instances of property at Rs. 598/-, Rs, 643/- & Rs. 263/- respectively. Still the DVO suggested the rate of property under consideration (PUC) at Rs. 880/- per square meter - we find no logic in suggesting such rate. DVO has also recorded that railway station and bus stand is only 2.0 to 2.5 Km away. The DVO despite giving such details has not justified the rate suggested at Rs. 880/- per square meter. Thus, in our view such report of DVO does not provide desired result. Report of Government approved valuer - The built in teak polished cupboards are made in walls. The kitchen on first floor is made of marble with shelves and dado up to lintel level. Wooden staircase is also provided to transit to upper level. The property is having good potential value. The rates of various instances are ranging from Rs. 126/- to 2500/- per square meter. In our view the report of Government approved valuer is based on minute details and supported with various comparable. Still considering the entire facts and circumstances, as find that the value suggested by Government approved valuer is on little higher side. No other cost of improvement is claimed by the assessee. Therefore, considering all the facts, the reports of the Government approved valuer and the instances recorded therein and taking holistic view, we direct the assessing officer to take value of land @ Rs. 1200/- per square meter and the rate of RCC and wooden structure @ 800/- per square meter and to re-compute the capital gain. The assessing officer shall allow the exemption under section 54F & 54EC, which was otherwise not disputed by him during assessment. Considering the facts, as given considerable relief in directing the assessing officer to adopt the rate of land and construction, therefore, consideration and adjudication of other submissions of the assessee have become academic. In the result, the grounds of appeal raised by the assessee are partly allowed.
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