TMI Blog2015 (9) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... d the rate given by the govt. approved valuer at ₹ 108/-. The average rate will work out at ₹ 102/- per sq.meter (Rs.33 + ₹ 165 + ₹ 108 = ₹ 306/3 = ₹ 102/-). In the circumstances, we direct the AO to adopt the fair market value of the asset as on 1.4.1981 at ₹ 102/- only. - Decided partly in favour of assessee - ITA No.373/Ahd/2012, ITA No.479/Ahd/2012 - - - Dated:- 11-9-2015 - S/Shri Rajpal Yadav, JM, Manish Borad, AM. Appellant by Shri Hardik Vora, AR Respondent by Shri D. N. Mishra, Sr.DR ORDER PER Manish Borad, Accountant Member. The assessee and Revenue are in cross appeal against the order of ld. CIT(A), Valsad, dated 30.11.2011 for Assessment Year 2008-09. Being cross appeals, these were heard together and are being disposed of by this consolidated order. 2. First we will take up assessee s appeal in ITA No.273/Ahd/2012 for AY 2008-09. The assessee has taken following effective ground in this appeal :- On the facts and circumstances of the case the ld. CIT(A) has erred in adopting the fair market value of the land as on 1.4.1981 @ of ₹ 76/- per sq. meter as against ₹ 105/- per sq. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly stated as follows:- it is to inform you that no sale deed was executed during the year 1975 to 1981. However, the details of sale statistics for the year of an agricultural land situated at village Ringanwada/Dabhel, within the jurisdiction of Dabhel Gram Panchayat, Nani Daman, are as 1. Serial No.21-XVII dated 4.2.1982 pages 316 to 326 2. Name of Vendor : 1) M/s Simplex Tin Products, Daman 2) Chandulal Lalchand Kothari 3) Sureshchandra Nemchand Shah 3. Name of Purchaser -1) Kantilal Hirasao Jain 2) M/s Simplex Tin Products P. Ltd. 4. Survey No. Plot No.18 19 part of plot no.678, 3/3,3/2,3/1,677,10/1, 9,8/2 8/1. 5. Area : 2000 sq.mtrs. 6. Value -3,30,000/- (@ 165/- per sq.mtrs.) 4. The assessee also obtained a certificate dated 16/01/2008 from the Sub- Registrar, Daman certifying the sales value of agricultural land in Ringanwada for the year 1982 was ₹ 165/- per sq.mtrs. 5. In your said show cause notice your Honour stated that the sales statistics rates for the said land as on 1.4.1981 was between ₹ 33/- to ₹ 55/- per sq. mtrs. We are not aware on the basis of which certificate your honour has arrived at the valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the sales statistics rates was between ₹ 33 to 55/- per sq.mtrs. for land in the year 1981. The AO averaged out and applied ₹ 43/- as FMV as on 1.4.1981. On the other hand the appellant s assertion for adopting FMV at ₹ 165/- or at least ₹ 106/- per sq.mtrs. was also based on the Certificates dated 22.1.2007 and 16.1.2008 from Sub-Registrar, Daman. The ld. AR also supported his arguments by submitting independent value s report wherein the FMV was determined at ₹ 105/- per sq.mtrs in 1981. Further, the ld. AR submitted a sale agreement in the year 1988 and the property Survey No.65/3D, situated at Industrial Zone at Ringanwada, within the village Panchayat Jurisdiction of Dabhel, Taluka of Daman. The FMV determined by the sub-registrar in this sale deed was ₹ 99/- per sq.mtrs. In the submission made by the ld. AR above various alternative have been considered to impress for the rate sought by the appellant. I have carefully considered the facts and circumstances of the case. Both the AO and the appellant heavily relied on the certified rates from the Sub-Registrar. But the rate certified by the Sub-Registrar widely varies. As rightly obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is a difference of ₹ 23/- for a period of 7 years. Considering the existing economic situation at that time i.e. between 1981 to 1988 an increase of ₹ 23/- is justifiable. In this circumstances, I direct the AO to adopt the FMV for the year 1981 at ₹ 76/- per sq.mtr. Accordingly this ground is partly allowed. 7. Aggrieved, the assessee is in further appeal before the Tribunal. The ld. AR of the assessee is again pressing his ground of appeal for applying rate of ₹ 105/- per sq.mtr. as determined by the Government Approved Valuer for computing the capital gain on transfer of inherited land for the very reason that the rates given by Sub-Registrar, Daman are varying to a great extent so much so that at one place they are mentioning the rate between ₹ 33 to 53 as referred in the letter submitted to the AO and the rate of ₹ 165 per sq.mtr as per letter available with assessee. The ld. AR also gave reference to some judicial pronouncements available in Paper Book and also relied on the decision of Tribunal, Ahmedabad Bench in ITA No.1495/Ahd/2007 vide order dated 11/11/2011 wherein it was held as under :- 10.1 As regards valuation of fla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed valuer has tried to arrive at quite close to the fair market value of the said land due to his adoption of scientific and technical method. We further notice that AO has relied purely on the average rate given by Sub-Registrar, Daman even when during the course of assessment proceedings the assessee has submitted that he has adopted the rate of ₹ 165/- per sq.meter on the basis of a certificate of valuation by Sub-Registrar, Damah. In such circumstances, it was required on the part of the AO to make a reference to the valuation officer under section 55A of the Act in order to ascertain the fair market value of the asset because Valuation Officer is a person of technical knowledge for the purpose of such valuation. In the present case no such reference was made by the AO to approach the valuation officer. We, therefore, find it appropriate to give cognizance to various rates as referred to above in such a way so as to cover the rates for the purpose of valuation given by Sub-Registrar, Daman to the AO, rates given by Sub-Registrar, Daman to the assessee as well as the rate given by the govt. approved valuer. We, therefore, decide to apply the average of three rates i.e. min ..... X X X X Extracts X X X X X X X X Extracts X X X X
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