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2017 (1) TMI 730 - ITAT MUMBAI

2017 (1) TMI 730 - ITAT MUMBAI - TMI - Validity of reference made by the AO to the DVO - Fair Market Value as offered by assessee was more than the value determined by the AO - Held that:- As carefully gone through the order of the Bombay High Court in case of Puja Prints (2014 (1) TMI 764 - BOMBAY HIGH COURT) wherein the facts are exactly similar and reference so made by the AO was held to be invalid for the assessment year falling prior to the amendment so brought in by Finance Act 2012. Undis .....

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or to introduction of amendment brought in Section 55A(a) by Finance Act 2012 w.e.f. 1/7/2012. - Decided in favour of assessee. - ITA No. 4233 to 4244 /Mum/2015, ITA No.4249/Mum/2015, ITA No.4250/Mum/2015 - Dated:- 9-1-2017 - Shri R. C. Sharma, AM And Shri Ram Lal Negi, JM Assessee by : Shri Subodh Ratnaparkhi Revenue by : Shri Rajat Mittal ORDER Per Bench These are the appeals filed by the assessee against the order of CIT(A) for the assessment year 2004-2005 in the matter of order passed u/s.1 .....

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parcels of land at village Gandhare, Taluka Kalyan to Mls. Madhav Construction & 2 others for the total consideration mentioned in the respective agreements. Each of the co-owner had specific share in the said land and long term capital gain has been accordingly offered to tax in the A.Y.2004-05 under consideration. In working of long term capital gains, the co-owners adopted the F.M.V. of land as on 01.04.1981 at ₹ 200/- per sq. mtr (i.e. ₹ 201- per sq. feet) by relying upon the .....

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basis of certain non-comparable sale instances. The Hon. CIT(A) has relied upon sale instances of village Chikanghar, Kalyan not appreciating that the land under consideration was located at village Gandhare, Kalyan and the location and other factors were not comparable. 5. Before us assessee had disputed the validity of reference made by AO to the DVO. It was argued by learned AR that issue under consideration is squarely covered by the decision of Jurisdictional High Court in case of Puja Pri .....

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y DVO. 6. We had carefully gone through the order of the Tribunal. Precise observation was as under:- 3. The common grievance of the assesses in all the appeals pertains to addition made by the AO by disregarding the valuation made by the assessee on the basis of government approved valuer s report as on 1-4-1981. 4. Rival contentions have been heard and record perused. Facts in brief are that all the above assesses are co-owners of land situated at Village Gandhara Taluka Kalyan. The above co-o .....

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assessee was higher than the actual value, referred the determination of FMV as on 01.040.1981 to the DVO, Thane, who valued the land @ ₹ 5/- per sq. mtr. In appellate proceedings, the CIT (A) upheld the reference to the DVO made u/s 55A but allowed FMV of ₹ 30/- per sq. mtr on the basis of certain non-comparable sale instances. 5. Against the above order of CIT(A), the assesses are in further appeal before us. 6. It was contended by ld. AR that the assessment year in question is A. .....

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bai 4. ITA -Vs- Rabinder H. Chhabra (HUF), ITA No.5511/Mum/2012 dt. 23.05.2014 - Hon. Members, "0" Bench, IT A T Mumbai 5. Hiaben Jayantilal Shah -Vs- ITA & Anr. 310 ITR 31 (Guj) (2009) 6. The Finance Bill 2012, Bill No. 11 of2012. 7. On the other hand, ld. DR relied on the order of lower authorities and contended that the CIT(A) has relied on the sale instances of village Chikanghar, Kalyan, the land of the assessee was located at village Gandhare, Kalyan and the location and othe .....

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al Valuation Officer can be made under Section 55A of the Act, only follows the decision of this Court in the matter of Daulal Mohta HUF (supra). The revenue has not been able to point out how the aforesaid decision is inapplicable to the present facts nor has the revenue pointed out that the decision in Daulal Mohta HUF (supra) has not been accepted by the revenue. On the aforesaid ground alone, this appeal need not be entertained. However, as submissions were made on merits, we have independen .....

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aluation Officer. In fact, the Assessing Officer referred the issue of .valuation to the Departmental Valuation Officer only because in his view the valuation of the property as on 1981 as made by the respondentassessee was higher than the fair market value. In the aforesaid circumstances, the invocation of Section 55A (a) of the Act is not justified. 8. The contention of the revenue that in view of the amendment to Section 55A(a) of the Act in 2012 by which the words "is less than the fair .....

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relevant time, very clearly reference could be made to Departmental Valuation Officer only if the value declared by the assessee is in the opinion of Assessing Officer less than its fair market value. 9. The contention of the revenue that the reference to the Departmental Valuation Officer by the Assessing Officer is sustainable in view of Section 55A(a) (ii) of the Act is not acceptable. This is for the reason that Section. 55A(b)of the Act very clearly states that it would apply in any other c .....

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