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2022 (11) TMI 1198 - ITAT SURATCapital gain computation - Commissioner has considered valuation given by DVO - Whether Commissioner has not referred the valuation method provided by the approved valuer? - HELD THAT:- The Registered Valuer had not based his Valuation Report on any scientific or logical basis but had made general observations to work out the FMV. The Registered Valuer is required to follow the provisions of the Urban Land Ceiling Land Act, Town and Country Planning Act, Chapter XXC of the I.T. Act, Capital Gains under the Income Tax Act and Guidelines referred by the Institute of Valuers and Guidelines from the sub-Registrar’s Office (Col. No.38) wherein the Valuer has to report whether any comparable instances/cases of the sales relied upon to arrive at the value of the land. As per the Central Public Works Department’s Manual, comparable sale instances, are only method for valuation. It is settled law that orange and apple cannot be compared which has been done by the Registered Valuers to arrive at an imaginary rate @ 235 per. Sq. mtr. The DVO has taken the rate @ Rs.50 per sq. mtr., which is based on some scientific analysis and as per the guidelines as the comparable sales instances has been taken. As correct computation of capital gains on the basis of the valuation report of the DVO has been made by the Assessing Officer. The AO is being directed to taken the estimated value as per DVO Report instead of the value of the Stamp Authorities to work out the correct computation of capital gains. Hence, the action of the AO is upheld. We find that there is no infirmity in the order passed by the ld. CIT(A) above. The ld. CIT(A) has considered all the facts and legal position applicable to the facts and delivered a reasoned order, therefore we decline to interfere in the order passed by the ld. CIT(A). Hence, the appeal of the assessee is hereby dismissed.
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