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TMI Blog2016 (12) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... First we shall take appeal of Mrs. Dilnavaz Sam Variava in ITA No.5216/Mum/2013: 2. This appeal has been filed against the order of Commissioner of Income-tax (Appeals)-10, Mumbai [hereinafter referred to as CIT (A)] dated 27-02-2013 passed against assessment order u/s 143(3) dated 31- 12-2008 for A.Y. 2006-07 on the following grounds: "This Appeal is against the Order of the Commissioner of Income-tax (Appeals)-10, Mumbai and relates to the Assessment year 2006-2007. 1) The learned Commissioner of Income Tax (Appeals) erred in holding that an addition was called for under section 50C, while determining Long Term Capital Gains in respect of the sale of assessee's 1/8 share in Colaba property. 2) The learned Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation authority in view of provisions of section 50C of the Act. In response, the assessee submitted its detailed reply dated 18-12-2008 wherein assessee raised various objections for automatic and blind application of provisions of section 50C and also raised various objections pointing out fallacies in valuation of the property. The assessee supported the valuation with the sale instances of the neighboring properties and also submitted that the building was more than 50 years old and therefore assessee was entitled for depreciation of 50%. The assessee also submitted in support of her claim, valuation report obtained from an architect indicating fair market value of the property. Lastly, the assessee submitted that since the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Rs. 17,88,500 was reduced to Rs. 10,59,375 by the Ld.CIT(A). 6. Aggrieved, assessee filed appeal before the Tribunal against the addition sustained by the Ld. CIT(A). It was stated by both the parties that no appeal has been filed by the department against the order of the Ld. CIT(A). During the course of hearing before us, it was submitted by the Ld. Counsel at the very outset that in the assessments of all the co-owners, actual sale consideration has been accepted and no addition has been made. In the case of one of the co-owners, order has been passed u/s 143(3) wherein actual sale consideration has been accepted. It was submitted that there were total co-owners, out of whom two are in appeal before the Tribunal. In the case of five ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. 7. Per contra, the Ld. DR relied upon the orders of the authorities below. 8. We have gone through the facts of the case. It is noted by us that the assessee had sold the property @ 6,000/- per sq.ft. as per the actual sale consideration shown in the sale deed. As per the AO and the DVO, the stamp duty rate was Rs. 10,221 per sq.ft., and therefore it was adopted as sale consideration. Ld. CIT(A), after making analysis of the sale price of the properties in the vicinity arrived at an average fair market value at Rs. 7,733/- per sq.ft. But she adopted fair market value of Rs. 8,500/- and directed the AO for re-computing the capital gains accordingly. 9. We have analysed all the facts brought before us. We have noted at the outset that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent on account depreciation must be given while determining the fair market values of two properties constructed at two different points of time. Further, none of the authorities has considered the aspect of providing discount with respect to sale price of properties owned by more than one person. It is noted by us that, if we properly consider all the objections raised by the assessee, the actual sale consideration shown by the assessee @ Rs. 6,000 per sq.ft., would not be less than the fair market value in view of the facts brought before us. Under these circumstances, there is actually no case of any addition. Ld. CT(A) ought to have deleted the addition fully. Thus, amount of the addition sustained by the Ld. CIT(A) is directed to be de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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