TMI Blog2014 (5) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... land @ 2.32 per sq. ft on the basis of comparable instances obtained by him. As per the provisions of section 55A of the Act, the AO may refer the matter to DVO in case valuation of any property on the basis of registered valuer has been shown by the assessee less than the market value – the AO was justified in treating the land as agricultural land as on 01-04-1981 while valuing the same for calculating the long term capital gain – thus, the order of the CIT(A) is set aside – Decided in favour of Revenue. - ITA No. 2528/Ahd/2012 - - - Dated:- 10-1-2014 - Sri D.K Tyagi and Shri T.R. Meena, JJ. For the Appellant : Sri P.L. Kureel, Sr.D.R. For the Respondent : Sri K.P. Shah, A.R. ORDER Per: D K Tyagi: This is the revenue s appeal against the order of Ld. CIT(A)-XV, Ahmedabad dated 02-08-2012. 2. Revenue has taken following ground:- 1. The Ld. CIT(A)-XV, Ahmedabad has erred in law and on facts in deleting the addition of Rs.40,15,335/- made on account of Long Term Capital Gain, on sale of non-agricultural land. 3. Brief facts as gathered from the assessment order and from the submissions of the assessee along with contentions of both AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of purchase Sales Value Purchase value Purchase indexed Gain 1. Land S. No. 603 13.05.2008 01.04.1981 4625000 752640 4380365 244635 Index of 2008-09:582 (C) The information U/s. 133(6) of the I T Act has been called on 28.12.11 from the Dy. Collector (Stamp Duty Valuation), Ahmedabad, for Jantry Rate per Sq. Mt. (value of the agriculture land per Sq. Mt.) in the F.Y. 1981-82. The Dy. Collector (Stamp Duty Valuation), Ahmedabad has submitted the information U/S. 133(6) of the I T Act on 28.12.2011 and stated that the in the year 1981-82 the Jantry was not applicable in the state government of Gujarat. The Jantry rate was applicable in the state government in the year of 1999. He has also stated that the Jantry Rate will be available at the office of Dy. Collector (Stamp Duty Valuation), Gandhinagar. Accordingly, further information U/s. 133 (6) of the I T Act called from Dy. Collector (Stamp Duty Valuation), Gandhinagar on 23.12.2011. The Inspector o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee which have been reproduced by him in his order has deleted this addition by observing as under:- 5. I have perused the facts as enumerated by A.O. is the asstt. order and as submitted by appellant during the course of appellate proceedings. I have perused the case laws relied on by appellant. After careful consideration of facts, submission and contentions of both A.O. as well as appellant, I am partially agree with the contention of the appellant that in the facts circumstances as that of appellant the A.O could have referred the matter to the Distt. Valuation officer (DVO) as contemplated u/s 55A of the Act or also should have accepted the valuation of Regd. Valuer as given by appellant. However on the other side that appellant was under bonafide belief that no capital gain is required to be shown in the return of income since transactions related to agricultural land or proceedings should have been made in the hands of appellant's HUF has no force. It is undisputed from the facts of the case that appellant as well as other co-owner s has not reflected even not indicated this transaction in their corresponding returns of income for A.Y. 09-10 and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to accept the contention of the appellant that A.O. himself has also not taken correct valuation from such details i.e. Rs.80 per sq. ml. rate is taken on le basis of rate of Rs 8 lacs per hector for irrigated Agri. Land but in the same detail Jantri rate for Non Agri, Land is given at Rs.1900/sq mt. These rates were for 1999 and therefore the same was required to be tampered down from 1999 to 1981 considering the various factors. The valuation made by the auth. valuer on the basis of justification has incorporated various factor and in a proper - scientific manner Jantri rate prevailing as on 08-09 of this plot at Rs.5000/sq mt. was duly tapered down with the help of ratio of cost inflation index for 1981 and 08-09 so to arrive at the basic price of Rs.800/ sq. mt. This was further increased by 20% considering other factor by him to arrive at price on 1981 at Rs.960/sq. mt. I am satisfied with the procedure and making of govt Registered valuer in this regard. In fact, in the case of other co owner i.e. Shri Hernant Amrutlal Patel for the same transaction on the basis of same valuation, ITO Wd 9(2) Ahmedabad vide para 4 of his order dt. 13/12/11 u/s 143(3) of the Act accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention has been that land should have been valued as non-agricultural land as on 01-04-1981 and the valuation of non-agricultural land as on 01-04-1981 should be adopted for calculating the long term capital gain on the ground that since the land when sold was non-agricultural land after conversion, it should be treated as non-agricultural land even before the date of conversion. This contention was backed by another argument that such treatment of agricultural land would bestow greater benefit on assessee which was the purpose of the provisions of law regarding applying cost inflation index while calculating long term capital gain. We find this argument devoid of merit in view of the factual matrix of this case that as on 01-04-1981 land was agricultural land and to apply cost inflation index the same cannot be treated as nonagricultural land as on 01-04-1981 simply because the same was converted into non-agricultural land subsequently in the year 2005 when the same was sold as non-agricultural land. Therefore lower authorities have rightly treated this land as agricultural land as on 01-04-1981 and assessing officer has rightly taken the valuation of the land @ 2.32 per sq. ft o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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