TMI Blog2010 (2) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... gains was taken at ₹ 66,34,000/- u/s 50C of the Income Tax Act, 1961 (for short the Act ) and there is no dispute on this aspect. The dispute, however, is on the cost of acquisition to be taken into account for computation of capital gain. The assessee had purchased the said premises for ₹ 69,000/- on 1st October 1978, and the fair market value of this property as on 1st April 1981, which the assessee was entitled to adopt as cost of acquisition for computing capital gains, was claimed to be ₹ 16,20,000/-. The said claim of the assessee was backed by a valuation report by an approved valuer. This valuation report, in turn, relied upon certain press reports about prevailing market prices and not on any comparable sale inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, the provisions of section 16A of the W.T. Act, 1957 will apply to the proceedings u/s 55A of the Income Tax Act, 1961 too. As may be seen, sub section (6) of section 16A of the W.T. Act, 1957 makes it mandatory for the Assessing Officer to proceed to complete the assessment on the asset in question in conformity with the estimate of the valuation officer. This being so, there is no case for adopting any other value in the case. It is to be further noted that the Assessing Officer had referred the 3 Kumar K. Chhabria I.T.A. No.5347/Mum./2008 valuation to the DVO-I only on appellant's request. In these circumstances, both from the point of view of law and appellant's conduct in making the request for the reference, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 323 has held that a relief if omitted to be sought has to be claimed only by filing a revised return and that this requirement cannot be circumvented by claiming the relief in any other form. In these circumstances, the submission on this point appears to me to be more an afterthought driven solely by the adverse prospect of rejection of appellant's valuation of the property. Appellant's reliance on the decision in the case of Shri Sudesh Balaram Rane Vs ACIT, Mumbai, is also misplaced. The facts in this case are completely different from appellant's case. Firstly In this case, the matter was restored to the Assessing Officer by the Hon'ble Tribunal. Besides, in this case, the cost of land was valued. In appellant's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractice several legislative measures had to be taken to combat tax evasion in property sale transactions. Bearing this in mind, the rates given by independent media and press like Times of India / Accommodation Times is certainly more reliable indicators of the prevailing market value of properties. The market prices given in Indian Valuer Directory Reference Book , also partly supports the valuation by the valuation report as filed by the assessee. As against assessee's valuation @ ₹ 2,700/- per sq.ft., this Directory Reference Book states the value of office premises in Nariman Point area @ ₹ 2,000/- per sq.ft. The valuation as per Accommodation Times , ranges from ₹ 2,400/- per sq.ft. to ₹ 3,200/- per sq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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